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.
Total operating revenue increased 9.6% to $49.3 billion in Q4 2025 and 12.8% to $197.6 billion for FY 2025.
positiveShareholders' net income increased 30.9% to $547 million in Q4 2025, with diluted EPS rising to $2.47.
positiveReturned $4.1 billion of capital to shareholders in 2025 through share repurchases and dividends.
positiveCarelonRx quarterly adjusted scripts increased 6.8% year-over-year.
positiveBenefit 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.
attentionHealth Benefits segment reported an adjusted operating loss of $0.2 billion in Q4 2025, impacted by higher medical cost trend.
attentionMedical membership decreased by 0.5 million, or 1%, year-over-year, driven by attrition in the Medicaid business.
attentionFull year 2026 outlook projects a low single digit decline in Total Operating Revenue and a decline in premium revenue.
attentionFull year 2026 outlook projects GAAP diluted EPS of at least $22.30, a decrease from $25.21 in FY 2025.
attentionFull year 2026 outlook projects adjusted diluted EPS of at least $25.50, a decrease from $30.29 in FY 2025.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Health Benefits | N/A | — | — | — |
CarelonRx | N/A | — | — | — |
Carelon Services | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Elevance Health delivered fourth quarter results in line with our outlook, reflecting disciplined execution in a dynamic environment.
As we enter 2026, our focus is on advancing affordability and making healthcare easier to access and navigate for the members we serve.
Through pricing discipline and targeted investments, we are strengthening the earnings power of our diversified platform.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.