Elevance Health, Inc. ELV reported third-quarter 2026 adjusted earnings per share (EPS) of $6.99, which surpassed the Zacks Consensus Estimate by 50%. However, the bottom line increased 15.9% year over year.
Operating revenues advanced 0.7% year over year to $50.4 billion. The top line beat the consensus mark by 4%.
The quarterly results benefited from higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. However, lower medical membership and elevated operating expenses partly offset the gains.
Elevance Health, Inc. Price, Consensus and EPS Surprise
Elevance Health, Inc. price-consensus-eps-surprise-chart | Elevance Health, Inc. Quote
ELV’s Q3 Operational Update
As of Sept. 30, 2026, Elevance Health’s Medical membership was around 44.9 million, which dipped 1.1% year over year. The decline was driven by reduced enrollment across the Medicaid, Medicare Advantage and Employer Group risk-based businesses. The reported figure beat the Zacks Consensus Estimate of 44.3 million and our estimate of 44 million.
Premiums totaled $41.7 billion in the quarter under review, which decreased 0.2% year over year and surpassed our estimate of $39.7 billion. Product revenues grew 4.8% year over year to $6.5 billion, marginally missing the Zacks Consensus Estimate by 0.5% and our estimate by 0.1%.
Net investment income rose 65.9% year over year to $1 billion. Adjusted operating margin remained flat at 2.7% year over year.
Total expenses escalated 0.7% year over year to $49.6 billion in the third quarter, higher than our estimate of $46.6 billion. The year-over-year increase was due to higher costs of products sold, operating expenses and interest expenses.
The operating expense ratio was 11.4%, which increased 90 bps year over year. The benefit expense ratio improved 70 basis points year over year to 90.6%, driven by better performance in Medicare Advantage and Individual ACA.
Q3 Segmental Results of ELV
Health Benefits
The unit recorded operating revenues of $43.4 billion in the third quarter, which rose 2.6% year over year and beat the Zacks Consensus Estimate of $41.4 billion as well as our estimate of $40.8 billion. The segment benefited from increased premium yields and service fee revenue.
The unit recorded an operating gain of $0.4 billion, which fell 27.5% year over year. It also missed the consensus mark of $0.5 billion. The operating margin deteriorated 40 basis points year over year to 1%.
Carelon
The segment’s operating revenues rose 5.4% year over year to $19.3 billion in the quarter under review, beating the Zacks Consensus Estimate of $18.6 billion and our estimate of $17.9 billion. The year-over-year increase was driven by higher CarelonRx product revenues and the scaling of risk-based capabilities in Carelon Services.
The unit’s operating gain was $0.9 billion, up 17.2% year over year, reflecting strong performance in Carelon Services’ risk-based solutions and improved profitability in specialty pharmacy. The operating margin increased 50 bps year over year to 4.7%.
Corporate & Other
Operating revenues amounted to $6 million. The unit incurred an operating loss of $75 million, narrower than the prior-year quarter’s $81 million loss.
ELV’s Financial Details (As of Sept. 30, 2026)
Elevance Health ended the third quarter with cash and cash equivalents of $10.3 billion, which advanced 9% from the 2025-end level. Total assets of $127.8 billion rose 5.2% from the 2025-end level.
Long-term debt, less the current portion, amounted to $30.4 billion and fell 1.3% from the figure as of Dec. 31, 2025. There were no short-term borrowings at the end of the third quarter, while the current portion of the long-term debt amounted to $375 million.
Total equity of $44.8 billion was up 1.7% from the 2025-end level.
Elevance Health generated net cash flow from operations of $1.3 billion in the third quarter of 2026. The figure rose from the prior-year figure of $1.1 billion.
ELV: Capital Deployment Update
Elevance Health repurchased 0.8 million shares for $330 million in the third quarter. It had approximately $5 billion remaining under its share repurchase authorization as of Sept. 30, 2026.
Elevance Health paid a quarterly dividend of $1.72 per share, totaling $373 million in cash distributions.
ELV’s Revised 2026 Outlook
The company now expects adjusted EPS of at least $29 for 2026. Management raised its underlying 2026 earnings baseline to at least $26.75 from at least $26, reflecting stronger operating performance. The company remains confident in delivering at least 12% growth in adjusted diluted EPS in 2027 from the revised baseline.
The operating margin for the Health Benefits segment was earlier estimated to witness a decrease of 50-25 bps from the 2025 reported figure. Also, the operating margin for CarelonRx was expected to see a 25-0 bps decline, while the same for Carelon Services was estimated to witness an increase of 0-25 bps.
Management had earlier projected operating revenues to witness a low-single-digit decline in 2026 from the 2025 level. Premium revenues were estimated to witness a mid-single-digit decline from the 2025 level. Medical enrollment was forecasted to be between 43.2 million and 43.9 million in 2026.
Net investment income was expected to be $1.9 billion. Interest expenses were forecasted to be $1.5 billion in 2026, while operating cash flow guidance was raised to at least $6.5 billion. Diluted shares are estimated to be 219-220 million.
ELV’s Zacks Rank & Other Key Picks
ELV currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Medical space are Phibro Animal Health Corporation PAHC and Halozyme Therapeutics, Inc. HALO, each sporting a Zacks Rank #1 (Strong Buy) at present. Concentra Group Holdings Parent, Inc. CON currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Phibro Animal Health’s third-quarter 2026 earnings is pegged at 79 cents per share, which has witnessed one downward revision in the past 60 days, with no movement in the opposite direction. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 18.4%. The consensus estimate for PAHC’s third-quarter2026 revenues is pinned at $378.5 million.
The Zacks Consensus Estimate for Halozyme Therapeutics’ third-quarter 2026 earnings is pegged at $2.28 per share, indicating 32.6% year-over-year growth. It has witnessed one upward revision in the past 60 days, with no movement in the opposite direction. The consensus estimates for HALO’s third quarter 2026 revenues are pinned at $480.68 million, implying 35.7% year-over-year growth.
The Zacks Consensus Estimate for Concentra Group’s third quarter 2026 earnings is pegged at 45 cents per share, indicating a 15.4% year-over-year increase. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 16.3%. The consensus estimate for CON’s third quarter 2026 revenues is pinned at $ 600.15 million, implying 4.8% year-over-year growth.
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