Elevance Health, Inc. (ELV) Earnings History

Elevance Health, Inc. - Q4 FY2025 EarningsMet

Filed at: Jan 28, 2026, 6:03 AM EST|Read from source

EXECUTIVE SUMMARY

Elevance Health reported fourth quarter and full year 2025 results that were largely in line with expectations, demonstrating disciplined execution amidst a dynamic environment. The company saw revenue growth driven by premium yields, acquisitions, and Medicare Advantage membership, though this was partially offset by Medicaid attrition. Looking ahead, Elevance Health is focused on affordability and accessibility, while recalibrating segment margin targets and projecting adjusted EPS growth for 2027.

POSITIVE HIGHLIGHTS

  • Total operating revenue increased 9.6% to $49.3 billion in Q4 2025 and 12.8% to $197.6 billion for FY 2025.

    positive
  • Shareholders' net income increased 30.9% to $547 million in Q4 2025, with diluted EPS rising to $2.47.

    positive
  • Returned $4.1 billion of capital to shareholders in 2025 through share repurchases and dividends.

    positive
  • CarelonRx quarterly adjusted scripts increased 6.8% year-over-year.

    positive

CONCERNS & RISKS

  • Benefit expense ratio increased 110 basis points to 93.5% in Q4 2025 and 150 basis points to 90.0% for the full year, reflecting higher medical cost trends.

    attention
  • Health Benefits segment reported an adjusted operating loss of $0.2 billion in Q4 2025, impacted by higher medical cost trend.

    attention
  • Medical membership decreased by 0.5 million, or 1%, year-over-year, driven by attrition in the Medicaid business.

    attention
  • Full year 2026 outlook projects a low single digit decline in Total Operating Revenue and a decline in premium revenue.

    attention
  • Full year 2026 outlook projects GAAP diluted EPS of at least $22.30, a decrease from $25.21 in FY 2025.

    attention
  • Full year 2026 outlook projects adjusted diluted EPS of at least $25.50, a decrease from $30.29 in FY 2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.46B
0.0%
Prior year: $6.46B
Net Income
Quarterly
$546.00M
0.0%
Prior year: $546.00M
EPS (Diluted)
Quarterly
$2.47
+36.5%
Prior year: $1.81
Annual (YTD)
$25.21
N/A
Prior year: $25.68
Operating Income
Quarterly
$309.00M
-54.1%
Prior year: $673.00M
Annual (YTD)
$7.20B
N/A
Prior year: $7.86B
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
0.6%
Prior Year
1.5%
YoY Change
-90 bps
Net Margin
Current Quarter
1.1%
Prior Year
0.9%
YoY Change
+20 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Health Benefits
0.0%
N/A
CarelonRx
0.0%
N/A
Carelon Services
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Health Benefits
N/A
CarelonRx
N/A
Carelon Services
N/A
Total Revenue$0.00M100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

Total Operating Revenue
"Low single digit decline"
Premium Revenue
"Mid single digit decline"
Product Revenue
"Mid single digit growth"
Service Fees
"Mid single digit growth"
Benefit Expense Ratio
89.790.7
Mid-point: 90.2
"+/- 50 bps"
Adjusted Operating Expense Ratio
10.111.1
Mid-point: 10.6
"+/- 50 bps"
Adjusted Operating Gain
6,800,000,000
"At least $6.8 billion"
Net Investment income
1,875,000,000
"$1,875 million"
Interest Expense
-1,530,000,000
"($1,530) million"
Amortization of Intangible Assets
-440,000,000
"($440) million"
Adjusted Effective Tax Rate
22.0%24.0%
Mid-point: 23.0%
"22.0% - 24.0%"
GAAP Diluted EPS
"At least $22.30"
Adjusted Diluted EPS
"At least $25.50"
Operating Revenue Growth Rate
"Health Benefits: Low single digit decline; CarelonRx: Low single digit growth; Carelon Services: Low single digit growth"
GAAP Operating Margin
"Health Benefits: (50) - (25) bps; CarelonRx: (25) - 0 bps; Carelon Services: 0 - 25 bps"
Total Medical Enrollment
43,175,00043,875,000
Mid-point: 43,525,000
"43,175 - 43,875 (in 000s)"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Business optimization charges
Resides in Corporate & Other segment.
$34M
FY 2025
Business optimization charges
Resides in Corporate & Other segment.
$38M
Q4 2025
Transaction and integration related costs
Resides in Corporate & Other segment.
+$54M
FY 2025
Transaction and integration related costs
Resides in Corporate & Other segment.
+$236M
Q4 2025
Litigation and settlement expenses
Resides in Corporate & Other segment.
+$5M
FY 2025
Litigation and settlement expenses
Resides in Corporate & Other segment.
+$24M
Q4 2025
Business dispositions and related items
Resides in Corporate & Other segment.
+$41M
FY 2025
Business dispositions and related items
Resides in Corporate & Other segment.
+$41M
Total Impact
+$329M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Elevance Health delivered fourth quarter results in line with our outlook, reflecting disciplined execution in a dynamic environment.

Elevance Health, Inc., Q4 FY2025 2025 Earnings Call

As we enter 2026, our focus is on advancing affordability and making healthcare easier to access and navigate for the members we serve.

Elevance Health, Inc., Q4 FY2025 2025 Earnings Call

Through pricing discipline and targeted investments, we are strengthening the earnings power of our diversified platform.

Elevance Health, Inc., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Carelon Services Consumers Served
91.8M
-9.2% YoY
Prior year: 101.1M
consumers
CarelonRx Quarterly Adjusted Scripts
88.5M
+6.8% YoY
Prior year: 82.9M
scripts
Days in Claims Payable
41.3
Prior year: 43.2
days

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.