Summary
Elevance Health, Inc. reported a decrease in net income for the three and six months ended June 30, 2025, compared to the prior year, primarily driven by increased benefit expenses and higher net losses on financial instruments. Despite the net income decline, total operating revenue saw a significant increase of 14.3% and 14.8% for the respective periods, driven by premium rate increases in the Health Benefits segment, recent acquisitions, and membership growth in Medicare Advantage and Individual ACA businesses. The company is actively managing its capital, evidenced by continued share repurchases and dividend payments, while also navigating evolving regulatory landscapes and integrating recent acquisitions. Key financial shifts include a substantial increase in benefit expenses due to higher medical cost trends, particularly in the Medicaid and Affordable Care Act (ACA) plans, which more than offset revenue growth in the Health Benefits segment. Conversely, the CarelonRx and Carelon Services segments demonstrated strong revenue and operating gain growth. The company maintained a solid liquidity position, with net cash provided by operating activities increasing year-over-year, supported by favorable working capital impacts.
Financial Highlights
51 data points| Revenue | $49.78B |
| Cost of Revenue | $5.29B |
| Gross Profit | $44.48B |
| SG&A Expenses | $5.00B |
| Operating Income | $2.42B |
| Net Income | $1.74B |
| EPS (Basic) | $7.74 |
| EPS (Diluted) | $7.72 |
| Shares Outstanding (Basic) | 225.20M |
| Shares Outstanding (Diluted) | 225.80M |
Key Highlights
- 1Total operating revenue increased by 14.3% ($6.2 billion) for the three months ended June 30, 2025, and by 14.8% ($12.7 billion) for the six months ended June 30, 2025, driven by premium rate adjustments and membership growth in key segments.
- 2Net income decreased by 24.2% ($557 million) for the three months and 13.7% ($622 million) for the six months ended June 30, 2025, compared to the prior year, largely due to increased benefit expenses and higher net losses on financial instruments.
- 3Benefit expense rose significantly by 20.1% for the three months and 17.8% for the six months, attributed to higher medical cost trends, particularly in Medicaid and ACA plans, outpacing premium rate adjustments.
- 4The CarelonRx and Carelon Services segments showed robust growth, with operating revenue increasing by 21.3% and 63.7% respectively for the three-month period, indicating successful integration and expansion of these service lines.
- 5The company repurchased $1.26 billion of common stock in the six months ended June 30, 2025, and declared a regular quarterly dividend of $1.71 per share, demonstrating a commitment to returning capital to shareholders.
- 6Medical membership experienced a slight overall decline of 0.3% to 45.6 million, primarily due to Medicaid attrition from eligibility redeterminations and a decrease in Commercial Fee-Based business, though offset by growth in Medicare Advantage and Individual ACA.
- 7The company recognized its estimated payment obligation of $666 million related to the Provider Settlement Agreement in the Blue Cross Blue Shield Antitrust Litigation, underscoring a significant legal contingency management.