01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Elevance Health, Inc. (ELV) reported a year of increased revenue and strategic acquisitions, but saw a slight decrease in net income for the year ended December 31, 2025.
Total operating revenue grew by 12.8% to $197.6 billiona, driven by premium rate increases across its Health Benefits segment, growth in Medicare Advantage, and the impact of acquisitions. However, shareholders' net income declined by 5.3% to $5.66 billion, or $25.21 per diluted share, primarily due to higher medical cost trends within the Health Benefits segment and increased investments in technology and workforce. The company experienced a 1.1% decrease in total medical membership, largely due to Medicaid redeterminations and attrition in other segments, partially offset by growth in Medicare Advantage and Individual businesses.
Key strategic moves during the year included the acquisition of Centers and CareBridge, aimed at strengthening its Medicaid and long-term care offerings and its Carelon Services segment. The company also managed its capital effectively, repurchasing shares and paying dividends, while maintaining a strong liquidity position. Looking ahead, Elevance Health is navigating evolving regulatory landscapes and persistent medical cost pressures.
02—Key points
Key Highlights
- Total operating revenue increased by 12.8% to $197.6 billion in 2025, driven by premium rate adjustments, acquisitions, and Medicare Advantage growth.
- Shareholders' net income decreased by 5.3% to $5.66 billion, or $25.21 per diluted share, impacted by higher medical cost trends and strategic investments.
- Total medical membership saw a slight decline of 1.1% to 45.2 million members, primarily due to Medicaid redeterminations, partially offset by growth in Medicare Advantage and Individual segments.
- The company completed strategic acquisitions of Centers and CareBridge, enhancing its capabilities in long-term care, Medicaid, and home and community-based services.
- The Health Benefits segment operating revenue increased by 11.2% to $167.1 billion, but its operating gain decreased by 33.4% due to higher medical cost trends.
- CarelonRx and Carelon Services segments showed strong revenue growth (20.7% and 57.7%, respectively) and increased operating gains, indicating continued expansion of these businesses.
- Elevance Health maintained a strong financial position, with total cash, cash equivalents, and investments of $37.2 billion at year-end 2025, and a debt-to-capital ratio of 42.1%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Elevance Health, Inc. kept $0.03.
- Revenue$199.13B100.0%
- Cost of revenue−$21.18B10.6%
- Gross profit$177.95B89.4%
- Operating costs−$170.75B85.7%
- Operating income$7.20B3.6%
- Interest, other & tax−$1.54B0.8%
- Net income$5.66B2.8%
Where FY2025 revenue went
$199.13B- Other operating costs: $149.76B, 75% of revenue
- Net income: $5.66B, 2.8% of revenue
- Cost of revenue: $21.18B, 11% of revenue
- SG&A: $20.98B, 11% of revenue
- Interest, other & tax: $1.54B, 0.8% of revenue
Kept 2.8% as net incomeNet income $5.66B · 2.8%Interest, other & tax $1.54B · 0.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $199.13B$177.01B | +12.5% |
| Cost of Revenue | $21.18B$19.75B | +7.2% |
| Gross Profit | $177.95B$157.26B | +13.2% |
| SG&A Expenses | $20.98B$20.02B | +4.8% |
| Operating Income | $7.20B$7.86B | −8.4% |
| Net Income | $5.66B$5.97B | −5.2% |
| EPS (Basic) | $25.28$25.81 | −2.1% |
| EPS (Diluted) | $25.21$25.68 | −1.8% |
| Shares Outstanding (Basic) | 224.00M231.70M | −3.3% |
| Shares Outstanding (Diluted) | 224.60M232.90M | −3.6% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Elevance Health's revenue growth in 2025?
Elevance Health's revenue growth in 2025 was primarily driven by premium rate increases in its Health Benefits segment to account for medical cost trends, the impact of recent acquisitions (Centers and CareBridge), and growth in its Medicare Advantage business. These factors were partially offset by a decrease in Medicaid membership.
Why did the company's net income decrease in 2025 despite revenue growth?
The decrease in net income was mainly attributed to higher medical cost trends across its Health Benefits segment and increased investments made by the company to support its workforce and accelerate technology adoption. These factors outweighed the revenue growth and improvements seen in other segments like CarelonRx and Carelon Services.
How is the company managing the decline in Medicaid membership?
The decline in Medicaid membership is primarily a result of state Medicaid eligibility redeterminations. Elevance Health is working on program improvements in partnership with states, strengthening care management, and optimizing its clinical strategy to improve effectiveness and manage costs within this segment.
What is the significance of the acquisitions of Centers and CareBridge?
The acquisition of Centers expands Elevance Health's managed long-term care capabilities and serves New York state Medicaid and dual-eligible members. CareBridge strengthens its Carelon Services segment by enhancing its home and community-based services for Medicaid and dual-eligible members. Both acquisitions align with the company's strategy to grow its Health Benefits segment and expand its care management programs.
06—Continue