Elevance Health zvýšila výhled upraveného zisku na akcii pro rok 2026 na nejméně 27 USD po lepších výsledcích za 2. čtvrtletí. Tržby vzrostly na 49,8 miliardy USD a upravený EPS činil 7,45 USD.
Elevance Health (NYSE:ELV) raised its 2026 adjusted earnings outlook after second-quarter results came in ahead of management’s expectations, citing favorable benefit expense performance, disciplined cost management and improving execution across several major business lines.
President and CEO Gail Boudreaux said the company now expects 2026 adjusted diluted earnings per share of at least $27. Chief Financial Officer Mark Kaye said Elevance views at least $26 as the appropriate 2026 earnings baseline for modeling purposes and remains confident in returning to at least 12% adjusted EPS growth in 2027 off that higher baseline.
For the second quarter, Elevance reported adjusted diluted earnings per share of $7.45. Operating revenue was $49.8 billion, up 0.8% from a year earlier, driven by higher premium yields and product revenue, partly offset by lower health plan membership. The company ended the quarter with 44.9 million medical members, with the sequential decline attributed mainly to a known fee-based customer transition and attrition in its individual ACA and Medicaid businesses.
Medicaid Remains a Key Focus as Margins Stay Under Pressure Management spent much of the call addressing Medicaid, where Boudreaux said the operating environment remains “dynamic.” Elevance maintained its full-year Medicaid operating margin outlook of approximately negative 1.75%, even as rate updates received during the quarter were stronger than anticipated.
Kaye said Medicaid cost drivers remain elevated and concentrated in previously identified areas, including behavioral health, specialty pharmacy, outpatient surgery and emergency department utilization. He said the company is not seeing a new “stepwise acuity reset,” adding that membership and acuity remain broadly aligned with assumptions. Instead, incremental pressure is increasingly tied to utilization among members who remain in the program.
Management reiterated that 2026 is expected to be the trough year for Medicaid margins, with improvement over time supported by better rate alignment and the maturation of care management actions. Kaye said the second-half Medicaid margin profile is expected to improve from the second quarter, supported by favorable July 1 rate activity and continued execution against cost pressures.
Boudreaux also said Elevance recently reached a mutual agreement with the District of Columbia to exit the D.C. Medicaid market. She said the company expects to exit additional Medicaid markets over the next 12 to 18 months where it does not see a path to sustainable performance. Executives did not identify the additional markets or provide sizing for potential exits.
Medicare Advantage and ACA Help Drive Second-Quarter Outperformance Elevance said Medicare Advantage results were stronger than expected and contributed to the company’s quarterly outperformance. Boudreaux said deliberate actions taken to reposition the portfolio — including disciplined plan design and a more focused mix of dual-eligible special needs plans and HMO products — are translating into stronger performance.
The company said it remains on track for at least a 2% operating margin in Medicare Advantage this year. Aimée Dailey, president of Government Health Benefits, said Elevance’s 2027 bids were developed with a prudent view of trend and a continued focus on sustainable margin improvement. She said the company continues to believe underlying medical cost trend is outpacing program funding.
In the individual ACA business, management said performance is developing broadly in line with how the year was priced and planned. Kaye said second-quarter favorability reflected more pronounced seasonality tied to a higher mix of bronze plans, as well as favorable final 2025 CMS risk adjustment results relative to prior estimates. However, he said Elevance is not extrapolating that favorability into 2026 and is reestablishing much of the prior-year favorability in its current-year risk adjustment accrual.
Kaye said member retention in ACA remains modestly ahead of expectations and that Elevance now expects to end 2026 with at least 1 million individual ACA members.
Commercial Business and Carelon Remain Growth Priorities In commercial health benefits, management said performance was in line with expectations, with cost trend remaining elevated but consistent with the company’s pricing approach. Morgan Kendrick, president of Commercial Health Benefits, said the market remains focused on affordability and simplicity, and that Elevance’s assets are resonating with employers.
Kendrick said the company’s fee-based and self-funded commercial businesses are performing well, including both local market and national account activity. He said Elevance had a record year in national accounts for 2026 and that its pipeline for 2027 is nearly as large. He also said some customers that left the company in prior years have returned.
Carelon also remains a focus of Elevance’s growth strategy. Boudreaux said CareBridge, which extends Carelon’s whole-health model into the home, can generate medical savings in the mid-teens for members and is being expanded into new markets. She also said Carelon behavioral health programs have delivered average cost savings of 10% through stronger member engagement and fewer adverse events.
Company Plans One-Time Investments From Non-Recurring Benefit Kaye said Elevance recorded a net below-the-line benefit of $0.80 per share in the quarter, primarily related to valuation adjustments within net investment income. Management said it plans to use that non-recurring benefit to fund one-time investments in the second half of the year.
Boudreaux said the investments are focused on strengthening medical cost management, member engagement, provider connectivity, operating efficiency and Carelon’s integrated capabilities. She said the company is using data and AI-enabled tools to identify medical cost pressures earlier and respond more quickly with targeted clinical, network, payment integrity and operating actions.
Executives emphasized that these incremental investments are one-time and will not recur in 2027. Kaye said the company’s 2026 outlook already included approximately $0.75 per share of targeted investment spending that is part of the ongoing run rate, separate from the new $0.80 per share of accelerated investments funded by the below-the-line benefit.
Cash Flow Outlook Raised; CMS Matter Closed Elevance reported second-quarter operating cash flow of $1.9 billion. Kaye said cash flow benefited from strong operating performance and the timing of a state Medicaid pass-through payment received in the quarter and remitted in July. The company raised its full-year operating cash flow outlook to at least $6 billion.
Days in claims payable were 45.4 days as of June 30, up 2.9 days from a year earlier. Kaye said the company remains confident in its reserving levels and described its reserve posture as consistent and prudent.
Kaye also said Elevance made an initial remittance of $342 million to CMS in the second quarter related to a matter discussed on the prior quarter’s call. He said the estimate of potential total financial exposure remains unchanged. As of July 9, Elevance completed all steps required by CMS and subsequently received written confirmation that sanctions will not be imposed and the matter is closed.
Boudreaux closed the call by saying Elevance’s confidence in 2027 is based on the breadth of the enterprise rather than any single line of business. She pointed to commercial pricing discipline, Medicare Advantage portfolio actions, ACA execution, expected Medicaid improvement, Carelon growth, operating efficiency and capital deployment as contributors to the company’s earnings path.
About Elevance Health (NYSE:ELV) Elevance Health, Inc (NYSE: ELV) is a large U.S.-based health benefits company that provides a broad range of health insurance products and related services. Headquartered in Indianapolis, the company rebranded from Anthem, Inc to Elevance Health in 2022 while continuing to operate consumer-facing health plans under established state and national brands. Gail Boudreaux serves as chief executive officer and president, leading the company’s strategic focus on integrated health care and benefit delivery.
Elevance’s core activities include offering medical and specialty health plans for individuals, employers and government programs, including Medicare and Medicaid managed-care products.
Elevance Health překonal odhady za čtvrtletí končící v červnu 2026: EPS činil 7,45 USD a tržby 49,83 miliardy USD. Zisk na akcii i tržby byly nad konsensem.
Elevance Health (ELV - Free Report) came out with quarterly earnings of $7.45 per share, beating the Zacks Consensus Estimate of $6.18 per share. This compares to earnings of $8.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +20.55%. A quarter ago, it was expected that this health insurer would post earnings of $10.68 per share when it actually produced earnings of $12.58, delivering a surprise of +17.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Elevance Health, which belongs to the Zacks Medical Services industry, posted revenues of $49.83 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.85%. This compares to year-ago revenues of $49.42 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Elevance Health shares have added about 21.8% since the beginning of the year versus the S&P 500's gain of 10.2%.
What's Next for Elevance Health?While Elevance Health has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Elevance Health was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.00 on $48.54 billion in revenues for the coming quarter and $26.86 on $194.24 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Ardent Health, Inc. (ARDT - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -67.3%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level.
Ardent Health, Inc.'s revenues are expected to be $1.62 billion, down 1.3% from the year-ago quarter.
Elevance zvýšila celoroční výhled upraveného zisku na nejméně 27 USD na akcii po překonání odhadů za druhé čtvrtletí. Čisté náklady na péči udržela pod očekáváním, když medical loss ratio činil 89,7 %.
Elevance Health President and CEO Gail Boudreaux listens during a House Energy and Commerce Health Subcommittee hearing examining health insurance affordability and healthcare costs in... Purchase Licensing Rights, opens new tab Read more
CompaniesJuly 15 (Reuters) - Elevance Health (ELV.N), opens new tab raised its annual profit forecast after beating second-quarter earnings estimates on Wednesday, as it looks to keep medical costs in check.
In April, the company said it has greater clarity on medical costs for the rest of the year as it leans on its efforts to keep them under control.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
Elevance, which has greater exposure to commercial insurance and Medicaid plans for low-income Americans, has been withdrawing from underperforming Medicare Advantage markets for older adults.
Higher demand for healthcare services among members of government-funded plans has increased medical expenses for health insurers.
For the quarter, the company reported a medical loss ratio, the percentage of premiums spent on medical care, of 89.7%. Analysts on average had expected a ratio of 90.15%, according to data compiled by LSEG.
The health insurer forecast annual adjusted profit to be at least $27 per share, compared with at least $26.75 per share projected earlier.
Analysts on average estimate an annual profit of $26.86 per share.
The company posted a quarterly adjusted profit of $7.45 per share, surpassing analysts' average estimate of $6.21.
Reporting by Sriparna Roy and Sneha S K in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Elevance Health čeká za 2. čtvrtletí EPS 6,18 USD a výnosy 48,45 mld. USD, obojí meziročně nižší. Tlak má přijít hlavně z poklesu pojistného, členství a slabších výsledků Health Benefits.
Key Takeaways Elevance is likely to see Q2 EPS of $6.18 on $48.45B in revenues, with both projected to decline.ELV may face pressure from lower premiums, membership declines and weaker Health Benefits results.Elevance's higher benefit expense ratio could weigh on profitability in the quarter. Elevance Health, Inc. (ELV - Free Report) is set to report its second-quarter 2026 results on July 15, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.18 per shareon revenues of $48.45 billion.
The second-quarter earnings estimate witnessed one downward revision and no upward revisions over the past 60 days. The bottom-line projection indicates a year-over-year decline of 30.1%. Also, the Zacks Consensus Estimate for quarterly revenues implies a year-over-year decrease of 2%.
Image Source: Zacks Investment Research
For 2026, the Zacks Consensus Estimate for Elevance’s revenues is pegged at $194.24 billion, implying a fall of 1.7% year over year. The consensus mark for 2026 EPS is pegged at $26.86, indicating an 11.3% year-over-year decrease.
Elevance’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 10.6%. This is depicted in the figure below.
Q2 Earnings Whispers for ElevanceOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
ELV currently has an Earnings ESP of -0.42% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Elevance’s Q2 Results?The Zacks Consensus Estimate for product revenues indicates 4.7% growth from the year-ago period’s $6.04 billion. However, the consensus estimate for premiums indicates a 3.3% decrease from the year-ago period.
The consensus mark for Commercial Individual membership implies 10% fall from a year ago, while our model estimate indicates a 12.2% decline. Also, declining memberships in Medicaid (-5.8%) are likely to have kept second-quarter performance in check. However, the consensus estimate for Commercial Fee-based memberships indicates 1.9% year-over-year growth.
Meanwhile, the Zacks Consensus Estimate for Carelon brand’s operating income for the second quarter indicates a 3.8% year-over-year decrease. The consensus estimate for the Health Benefits segment’s operating income for the second quarter indicates a 34.7% year-over-year plunge, making an earnings beat uncertain.
The Zacks Consensus Estimate for the benefit expense ratio is pegged at 89.4, higher than the year-ago level of 88.9, which could further weigh on profitability during the quarter.
Stocks That Warrant a LookWhile an earnings beat looks uncertain for Elevance, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
ProMIS Neurosciences, Inc. (PMN - Free Report) has an Earnings ESP of +13.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ProMIS’ bottom line for the to-be-reported quarter of a loss of $1.45 indicates 80% year-over-year improvement. It has witnessed one upward revision against no downward movement over the past 60 days.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +1.83% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter indicates 1.3% increase from a year ago. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 3.7%. The consensus estimate for ALC’s revenues is pegged at $2.77 billion, signaling 7.3% increase.
Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter predicts 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. CAH’s revenues for the to-be-reported quarter are pegged at $65.61 billion, a 9.1% increase from the year-ago period.
Elevance Health a UnitedHealth tento týden zveřejní výsledky, které ukážou, zda se po období vyšších nákladů na zdravotní péči daří pojišťovnám držet náklady na uzdě. Sledují se hlavně plány Medicare Advantage.
This week’s Elevance Health and UnitedHealth Group quarterly earnings are much anticipated for signs these companies’ health insurance businesses and their rivals are keeping a handle on rising costs. In this photo, UnitedHealthcare health insurance company signage is displayed on an office building in Phoenix, Arizona on July 19, 2023. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
AFP via Getty Images
This week’s Elevance Health and UnitedHealth Group quarterly earnings are much anticipated for signs these companies’ health insurance businesses and that of their rivals are keeping a handle on rising costs.
Elevance, which owns Blue Cross and Blue Shield plans in 14 states, and UnitedHealth, which owns the nation’s largest health insurer in UnitedHealthcare, will be the first health insurers to report second quarter earnings as the industry works to exit a period of higher-than-expected medical costs.
These insurers’ earnings reports report will offer clues as to whether the sector may finally be turning the corner after most health plans reported medical loss ratios north of 90% until the trend was interrupted with lower costs in the first quarter of this year. Such a ratio, which is the percentage of premium revenue that goes toward medical costs, was above 90% for much of 2025 for many insurers.
In the first quarter of this year, however, Elevance, which is the nation’s second-largest health insurer behind UnitedHealthcare, reported a benefit expense ratio eclipsing 86%. Elevance manages Medicaid coverage for poor Americans via contracts with multiple states, sells Medicare Advantage for older adults and markets commercial health insurance including individual coverage under the Affordable Care Act, also known as Obamacare. The company also has a growing Carelon healthcare services business.
“The benefit expense ratio was 86.8 percent, an increase of 40 basis points, reflecting expected elevated medical cost trend in our Medicaid business, partially offset by improved performance in Medicare,” Elevance Health said in its first quarter earnings statement.
MORE FOR YOU
Analysts who follow the industry say they expect second quarter earnings reports to show that companies have maintained their handle on medical cost trends, particularly in their Medicare Advantage plans. Medicare Advantage plans contract with the federal government to provide coverage available in traditional Medicare plus extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs.
UnitedHealth said in its first quarter report that its “medical cost ratio was 83.9% for the first quarter 2026, down 90 basis points from the first quarter 2025.”
Elevance reports Wednesday, July 15 and UnitedHealth reports Thursday, July 16.
Elevance Health (ELV) v 1. čtvrtletí vygenerovala provozní cash flow 4,3 mld. USD a vrátila akcionářům zhruba 1,5 mld. USD na dividendách a odkupu akcií. Zároveň dál investuje do Carelonu a AI.
Key Takeaways ELV is balancing shareholder returns with investments in Carelon and AI to support long-term growth.ELV generated $4.3B operating cash flow and returned about $1.5B via dividends and share repurchases.ELV's ROIC of 8.3% tops the industry average, while a $5.6B buyback authorization remains available. Elevance Health, Inc. (ELV - Free Report) is using a disciplined capital allocation strategy to balance shareholder returns with long-term business expansion. The company continues to invest in growth initiatives while returning excess cash through dividends and share repurchases. This balanced approach supports financial flexibility and positions ELV to navigate an evolving healthcare landscape without sacrificing future earnings potential.
The company's capital allocation is supported by robust cash generation. In the first quarter of 2026, ELV generated $4.3 billion in operating cash flow, up sharply from $1 billion a year ago, and expects full-year operating cash flow to be at least $5.5 billion. During the quarter, it returned around $1.5 billion to shareholders through $376 million in dividends and $1.1 billion in share repurchases. With $5.6 billion remaining under its share repurchase authorization as of March 31, 2026, the company retains significant flexibility to continue rewarding shareholders.
Additionally, ELV is directing capital toward businesses with attractive long-term growth prospects. The company continues to expand Carelon's capabilities across pharmacy, behavioral health, home-based care and value-based care while scaling AI to improve member engagement, reduce administrative costs and strengthen care management. These investments are expected to improve operating efficiency and diversify earnings beyond the traditional health insurance business.
Strong cash generation gives ELV the flexibility to fund growth initiatives while maintaining shareholder returns. Its ROIC of 8.3% exceeds the industry average of 6.6%. If the company continues executing this balanced strategy, its disciplined use of capital could support sustainable earnings growth and create lasting shareholder value.
How Are Competitors Faring?Some of ELV’s competitors in the medical space are UnitedHealth Group Incorporated (UNH - Free Report) and Humana Inc. (HUM - Free Report) .
UnitedHealth generates solid cash from operations and returns value to investors via share repurchases and dividend payouts. In the first quarter of 2026, cash flows from operations were $8.9 billion, up 63.3% year over year. During the quarter, UNH paid dividends worth $2 billion.
Humana's strong financial position, supported by solid cash reserves and robust cash flows, has enabled it to return capital to shareholders. HUM generated net cash from operations of $1.3 billion in the first quarter of 2026, up nearly fourfold year over year. It repurchased shares worth $107 million in the first quarter of 2026 and paid dividends of $107 million.
Elevance Health’s Price Performance, Valuation & EstimatesShares of ELV have risen 19.9% in the year-to-date period against the industry’s fall of 0.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Elevance Health trades at a forward price-to-earnings ratio of 15, below the industry average of 16.38. ELV carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Elevance Health’s 2026 earnings is pegged at $26.86 per share, implying an 11.3% drop from the year-ago period.
Image Source: Zacks Investment Research
ELV stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The market expects Elevance Health (ELV - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 15, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis health insurer is expected to post quarterly earnings of $6.18 per share in its upcoming report, which represents a year-over-year change of -30.1%.
Revenues are expected to be $48.45 billion, down 2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.05% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Elevance Health?For Elevance Health, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.42%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Elevance Health will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Elevance Health would post earnings of $10.68 per share when it actually produced earnings of $12.58, delivering a surprise of +17.79%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Elevance Health doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Elevance žaluje CMS kvůli změně hodnocení Medicare Advantage, která podle firmy zvýhodnila konkurenta. Sporné rozhodnutí mělo firmu připravit asi o 115 milionů USD na bonusových platbách.
Key Takeaways Elevance sued CMS over a Medicare Advantage Star Ratings change it says favored a competitor.ELV says the disputed ratings decision cost about $115 million in Medicare Advantage bonus payments.A ruling could reshape CMS' ratings process and affect insurer payments and competitive positioning. Elevance Health, Inc. (ELV - Free Report) recently filed a lawsuit against the Centers for Medicare & Medicaid Services (CMS), arguing that the agency unfairly changed the Medicare Advantage Star Ratings of one of its competitors after the ratings had already been finalized. Per reports, Elevance claims CMS gave the rival special treatment by recalculating its scores under a different standard while denying similar relief to other insurers.
The company indicates the move created an uneven competitive landscape. Through the lawsuit, Elevance is asking the court to overturn CMS' decision and restore a consistent ratings process for all Medicare Advantage insurers, according to reports.
The dispute centers on Medicare Advantage Star Ratings, which measure plan quality and directly affect bonus payments, marketing strength and member enrollment. According to the lawsuit, CMS revised a competitor's (Clover Health) ratings after identifying an error in its calculations but refused to apply the same approach across the broader industry. ELV estimates the disputed decision cost it about $115 million in Medicare Advantage quality bonus payments.
Elevance argues that once ratings are released, all insurers should be treated under the same rules instead of making company-specific adjustments. The outcome could have meaningful financial consequences for Elevance and other Medicare Advantage insurers.
Higher Star Ratings unlock quality bonus payments from CMS, improve rebate funding and make health plans more attractive during enrollment. Federal spending on Medicare Advantage quality bonuses is expected to top $13 billion this year, rising from 2025 even as the percentage of members in high-performing plans declines, per KFF.
If the court sides with Elevance, CMS could be forced to revisit its ratings process, potentially affecting payments and competitive positioning across the industry. If CMS prevails, the disputed ratings would remain in place, leaving Elevance at a competitive disadvantage against the benefited rival. The case also adds regulatory uncertainty for insurers that rely heavily on Medicare Advantage for future earnings growth.
ELV’s Price PerformanceElevance Health shares have gained 19.2% in the past year compared with the 1.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key PicksElevance Health currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Medical space are CVS Health Corporation (CVS - Free Report) , Pediatrix Medical Group, Inc. (MD - Free Report) and Biodesix, Inc. (BDSX - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CVS Health’s 2026 bottom line suggests 10.2% year-over-year growth. CVS has witnessed 12 upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 16.8%.
The Zacks Consensus Estimate for Pediatrix Medical’s full-year 2026 earnings indicates a 9.3% year-over-year increase. MD beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 21.3%. The consensus mark for revenues suggests 1.3% growth from the year-ago period.
The Zacks Consensus Estimate for Biodesix’s 2026 full-year earnings implies a 37.7% improvement from the year-ago reported figure. BDSX beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 25.6%. The consensus mark for its current-year revenues is pegged at $110.95 million, which indicates a 25.4% year-over-year increase.
Key Takeaways Elevance Health's Carelon contributes 36.3% of operating revenues, expanding beyond health insurance.ELV said CareBridge cut readmissions 20% and saved over 10% in post-acute care costs.Carelon's Q1 2026 operating gain fell 3.8%, but investments support long-term growth prospects. Carelon is emerging as a key pillar of Elevance Health, Inc.'s (ELV - Free Report) long-term growth strategy as the company expands beyond traditional health insurance. Through its integrated care delivery, pharmacy and care management businesses, Carelon is helping improve clinical outcomes while creating new revenue opportunities. The segment now contributes around 36.3% of Elevance Health's total operating revenues, underscoring its growing role in the company's diversified business model.
The business is also becoming a meaningful driver of operational efficiency. Carelon combines AI, predictive analytics and coordinated care programs to identify high-risk patients earlier and intervene before medical conditions worsen. Its integrated CareBridge and care-at-home platform has reduced hospital readmissions by 20% while generating over 10% savings in post-acute care costs. These capabilities also support higher medication adherence, fewer emergency room visits and improved care coordination, reinforcing Carelon's competitive position.
However, Carelon's first-quarter 2026 operating gain declined 3.8% year over year due to lower affiliated health plan membership and continued investments in expanding risk-based programs. Even so, these investments are laying the foundation for future growth. Specialty pharmacy, CareBridge and integrated medical-pharmacy solutions continue to gain traction, supporting Carelon's long-term growth prospects as employers seek more cost-effective healthcare solutions.
Carelon's growing role complements ELV's broader financial momentum. Operating revenues rose 1.5% year over year in the first quarter of 2026, and the company raised its 2026 adjusted EPS guidance to at least $26.75. As Carelon scales its clinical and pharmacy capabilities, it is well positioned to become a key contributor to Elevance Health's earnings growth and competitive advantage.
How Are Competitors Faring?
Some of ELV’s major competitors in the value-based care space are UnitedHealth Group Incorporated (UNH - Free Report) and Humana Inc. (HUM - Free Report) .
UnitedHealth, through its Optum segment, is scaling AI-driven care management, pharmacy and provider solutions to improve care coordination and operational efficiency. Its integrated care model supports value-based reimbursement while diversifying revenues beyond its insurance business. UnitedHealth’s total revenues rose 2% year over year in the first quarter of 2026.
Humana is strengthening its integrated care strategy through CenterWell, which combines primary care, home health and pharmacy services. The company continues expanding value-based care and home-based services, aiming to improve patient outcomes while controlling medical costs. Humana’s total revenues rose 23.5% year over year in the first quarter of 2026.
Elevance Health’s Price Performance, Valuation & EstimatesShares of ELV have risen 12.1% in the year-to-date period against the industry’s fall of 2.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Elevance Health trades at a forward price-to-earnings ratio of 13.85, below the industry average of 15.70. ELV carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Elevance Health’s 2026 earnings is pegged at $26.92 per share, implying an 11.1% drop from the year-ago period.
Image Source: Zacks Investment Research
ELV stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health za pět let investovala 640 mil. USD do dostupného bydlení a podpořila 2 654 bytových jednotek v 10 státech. Celkem už do tohoto segmentu vložila více než 1 mld. USD.
Key Takeaways Elevance Health invested $640M in affordable housing over five years, supporting 2,654 units in 10 states.The strategy pairs housing with healthcare and support services for vulnerable Medicaid and Medicare members.Elevance says stable housing may improve outcomes, manage costs and support long-term growth. Elevance Health, Inc. (ELV - Free Report) recently announced that it has invested $640 million in affordable housing projects over the past five years, reinforcing its broader effort to address social factors that influence health outcomes. The investments supported the development of 2,654 affordable housing units across 15 properties in 10 states, including apartment homes, townhomes and single-family residences. The latest commitment brings ELV's total affordable housing investment to more than $1 billion over nearly two decades, ultimately supporting over 40,000 units across 45 states.
The initiative goes beyond building affordable housing. Elevance aims to pair housing with healthcare and community support services, particularly for vulnerable populations. The company believes that stable housing can improve health outcomes, increase access to care and help address social factors that often lead to poorer health. By helping high-risk Medicaid and Medicare members secure reliable housing, Elevance hopes to create healthier communities and improve member well-being.
The investment also aligns with Elevance's broader strategy of managing healthcare costs while improving member outcomes. For the first quarter of 2026, the company reported adjusted earnings per share of $12.58 and raised its full-year adjusted EPS guidance. As healthcare utilization remains elevated across government-sponsored programs, addressing the root causes of poor health could help moderate medical costs and support long-term margin stability.
The announcement signals a long-term value creation strategy rather than an immediate earnings catalyst. These community-focused investments could strengthen Elevance's relationships with state agencies and enhance its position when competing for government-sponsored healthcare contracts. Overall, the initiative reflects management's focus on sustainable growth and long-term shareholder value.
ELV’s Stock Price PerformanceShares of Elevance Health have gained 11.6% year to date compared to the industry’s 6.5% decline over the same period.
Image Source: Zacks Investment Research
ELV’s Zacks Rank & Key PicksElevance Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are Surgery Partners, Inc. (SGRY - Free Report) , BrightSpring Health Services, Inc. (BTSG - Free Report) and Alignment Healthcare, Inc. (ALHC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Surgery Partners’ 2026 earnings is pegged at 36 cents per share, which has witnessed three upward revisions in the past 60 days, with no movement in the opposite direction. The consensus estimate for SGRY’s 2026 revenues is pinned at $3.41 billion, implying 3% year-over-year growth.
The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.67 per share, which has witnessed five upward revisions in the past 60 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.05 billion, implying 16.6% year-over-year growth.
The Zacks Consensus Estimate for Alignment Healthcare’s 2026 earnings is pegged at 20 cents per share, which has witnessed four upward revisions in the past 60 days, with no movement in the opposite direction. ALHC beat earnings estimates in each of the trailing four quarters, with the average surprise being 198.8%. The consensus estimate for 2026 revenues is pinned at $5.19 billion, implying 31.4% year-over-year growth.
