Elevance Health, Inc.ELV
Elevance Health, Inc. Financial Overview 2021–2025
Updated Jul 10, 2026Elevance Health drove a massive 12.8% revenue surge to $197.6 billion in FY2025, yet shareholders' net income simultaneously slid by 5.3% to $5.66 billion. This persistent disconnect between top-line expansion and bottom-line contraction highlights the core investment reality for the healthcare giant: while the company commands immense scale and pricing power, surging medical cost trends and Medicaid attrition are actively squeezing profitability.
Despite these recent margin pressures, the company’s structural growth arc remains formidable, with total operating revenue climbing from $136.9 billion in FY2021 to $197.6 billion in FY2025. This expansion was largely fueled by Medicare Advantage growth, aggressive premium rate hikes, and the rapid scale of its CarelonRx pharmacy unit, which delivered a 20.7% revenue jump in FY2025. However, operational headwinds are clearly visible in the company's total medical membership, which essentially flatlined from 45.4 million members in FY2021 to 45.2 million in FY2025 after weathering a severe 15.1% plunge in Medicaid enrollment during FY2024 due to government eligibility redeterminations.
To buffer these operational headwinds, management leaned heavily into share repurchases, reducing outstanding shares to support an EPS of $25.21 for FY2025. At the close of FY2025, the market priced this mixed operational picture cautiously. Elevance Health traded at just 13.9x earnings with a stock price of $350.55, valuing the enterprise at a $77.4 billion market capitalization.
Recent Developments (Q4 2025 and Q1 2026)
Elevance Health faced severe profit headwinds in Q1 2026, underscored by a 19.2% year-over-year net income decline to $1.76 billion despite a 2.6% revenue increase to $50.18 billion. This bottom-line compression was heavily driven by a $935 million loss contingency accrual linked to Medicare Advantage risk adjustment data. Consequently, CMS suspended new Medicare Advantage enrollment for the company effective March 31, 2026. Additionally, the company booked $129 million in restructuring costs and announced the pending departure of Carelon President Peter Haytaian in May 2026.
Bulls will highlight a 325.7% surge in operating cash flow to $4.33 billion, supporting full-year 2026 adjusted earnings guidance of at least $26.75 per share. Conversely, bears view the ongoing 0.9% quarterly membership decline and CMS sanctions as structural threats to profitability. Trading at 13.0x earnings as of the Q1 2026 reporting date, the stock appears heavily discounted to reflect these immediate roadblocks.
What to watch: progress toward resolving the CMS Medicare Advantage enrollment suspension; margin impacts from the operating model transformation program.
Rev
$199.13B
FY2025
NI
$5.66B
FY2025
EPS
$25.28
FY2025
OCF
$4.29B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
Elevance Health, Inc. 8-K Report, Regulation FD Disclosure (Jun 10, 2026)
Elevance Health, Inc. (ELV) issued an 8-K filing on June 10, 2026, to reaffirm its financial guidance for the full year 2026. The company expects shareholders' earnings per diluted share to be at least $19.85, which includes approximately $6.90 per diluted share from net unfavorable items. Excluding these items, the adjusted shareholders' earnings are projected to be at least $26.75 per diluted share, consistent with expectations set in the first quarter of 2026. This guidance does not incorporate any further adjustment items beyond those already reported. Additionally, Elevance Health is reiterating its full-year 2026 guidance for the benefit expense ratio, which is expected to be 90.2% plus or minus 50 basis points. This filing serves as a communication with investors and analysts, confirming the company's financial outlook and operational expectations for the remainder of the fiscal year.
Elevance Health, Inc. 8-K Report, Shareholder Vote Results (May 13, 2026)
Elevance Health, Inc. (ELV) held its Annual Meeting of Shareholders on May 13, 2026, with a substantial quorum represented by over 194 million shares of common stock. The meeting's primary outcomes included the overwhelming election of directors, with all nominees securing significant support and terms extending to 2029. This demonstrates continued confidence in the leadership team guiding the company's strategic direction. Furthermore, shareholders provided advisory approval for the company's executive compensation practices, signaling alignment between executive pay and company performance. The appointment of Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2026 was also ratified, reinforcing established audit procedures. Notably, a shareholder proposal seeking an independent study on prohibiting corporate contributions to partisan 527 political groups did not receive sufficient support for approval, indicating shareholder sentiment against such an initiative at this time.
Elevance Health, Inc. 8-K Report, Financial Results (Apr 22, 2026)
Elevance Health, Inc. has filed an 8-K report on April 22, 2026, to disclose its financial results for the quarter ended March 31, 2026. This filing primarily includes a press release detailing the company's performance for the period. While specific financial figures are not detailed in the 8-K text itself, the report indicates that this information is available in the furnished press release (Exhibit 99.1). Investors should refer to this press release for key metrics such as revenue, earnings per share, and other operational and financial performance indicators. The report also contains standard forward-looking statements, outlining potential future events and financial projections. These statements are subject to various risks and uncertainties, as detailed in the filing, which could lead to actual results differing from expectations. Investors are advised to review these risks, which include factors like healthcare cost trends, regulatory changes, operational challenges, and competitive pressures, when evaluating the company's outlook.
Elevance Health, Inc. 8-K Report, Regulation FD Disclosure (Mar 10, 2026)
Elevance Health, Inc. (ELV) provided an update via an 8-K filing on March 10, 2026, reaffirming its full-year 2026 adjusted earnings per diluted share guidance of at least $25.50. The company also reaffirmed its 2026 benefit expense ratio guidance of 90.2% +/- 50 basis points. Importantly, both of these guidance figures have been set with the assumption that anticipated sanctions from the Centers for Medicare & Medicaid Services (CMS) will be imposed. These sanctions, which involve suspending enrollment of Medicare beneficiaries and certain communication activities for its Medicare Advantage-Prescription Drug plans effective March 31, 2026, are a significant point of focus. While the company is working to address the issues identified by CMS, the impact of these sanctions, if not satisfactorily resolved, is already factored into the company's financial outlook. Elevance Health is currently unable to provide a GAAP reconciliation for its adjusted earnings guidance due to the uncertainty in estimating potential financial impacts from resolving the CMS matter.
Elevance Health, Inc. 8-K Report, Corporate Update (Mar 2, 2026)
Elevance Health, Inc. (ELV) disclosed in an 8-K filing dated March 2, 2026, that it has been notified by the Centers for Medicare & Medicaid Services (CMS) of its intent to impose intermediate sanctions. These sanctions include suspending enrollment of new Medicare beneficiaries into the Company's Medicare Advantage-Prescription Drug (MA-PD) plans and halting certain communication activities to Medicare beneficiaries. The sanctions are slated to take effect on March 31, 2026, pending satisfactory resolution of the issues identified by CMS. The core of the CMS action relates to alleged noncompliance with Medicare Advantage risk adjustment data submission requirements for dates of service prior to April 3, 2023. Elevance Health has indicated that it revised its practices in April 2023 following updated regulatory guidance and is actively engaged with CMS to address these concerns. Importantly, the sanctions do not affect current MA-PD members' benefits or plans.
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