Elevance Health reported first quarter results that exceeded expectations, driven by strong underlying business performance and improved claims experience. The company is raising its full-year adjusted EPS guidance due to increased visibility and underlying business strength, positioning for continued improvement.
Operating revenue increased 1.5% to $49.5 billion, driven by higher premium yields and CarelonRx product revenue.
positiveAdjusted diluted EPS increased 5.1% to $12.58, exceeding expectations.
positiveOperating cash flow of $4.3 billion increased significantly year-over-year, reflecting strong business performance and favorable working capital dynamics.
positiveThe company returned $1.5 billion of capital to shareholders in Q1 2026 through share repurchases and dividends.
positiveOperating margin decreased by 230 basis points to 4.2% compared to the prior year, impacted by a $935 million accrual for a CMS notice and higher medical costs in Medicaid.
attentionBenefit expense ratio increased by 40 basis points to 86.8%, reflecting elevated medical cost trends in Medicaid.
attentionDays in Claims Payable increased by 5.3 days from the prior quarter and 3.8 days year-over-year, indicating a potential lengthening of payment cycles.
attentionOperating gain decreased 34.2% year-over-year, primarily due to the significant accrual for the CMS notice and business optimization charges.
negativeMedical membership declined 0.9% year-over-year, with notable decreases in Medicare Advantage (-15.8%) and Medicaid (-4.6%), despite growth in commercial fee-based membership.
attentionCarelon segment operating gain declined 3.8% year-over-year due to lower health plan membership and investments in risk-based capabilities.
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 | — | — | — |
Corporate & Other | 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.
Our first quarter results exceeded expectations, reflecting underlying business strength and improving claims experience.
We are raising our full-year adjusted EPS guidance, supported by greater visibility into the balance of the year.
Our actions are driving more consistent performance and position Elevance Health for continued improvement over time.
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.