01—Abstract
Summary
Summary of the 10-Q filed October 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Elevance Health, Inc. (ELV) reported its financial results for the third quarter and the first nine months of fiscal year 2025.
The company demonstrated revenue growth driven by premium rate increases and expansion in its Medicare Advantage business, partially offset by Medicaid attrition. Net income saw an increase for the quarter, but a decrease for the nine-month period, influenced by factors such as investment performance, interest expenses, and tax impacts. Total assets grew to $122.8 billiona from $116.9 billion at year-end 2024, with increases in current assets like premiums receivables and other receivables.
Liabilities also increased, primarily due to higher medical claims payable and long-term debt. The company continues to manage its capital through dividends and share repurchases, while also investing in strategic acquisitions and business optimization initiatives. Regulatory changes and market dynamics, particularly in the healthcare landscape, remain key considerations for future performance.
02—Key points
Key Highlights
- Total operating revenue increased by 12.0% for the three months ended September 30, 2025, to $50.1 billion, and by 13.9% for the nine months ended September 30, 2025, to $148.3 billion, driven by premium rate increases and Medicare Advantage growth.
- Shareholders' net income for the third quarter of 2025 rose by 17.0% to $1.19 billion, resulting in diluted EPS of $5.32, up from $4.36 in the prior year quarter.
- For the nine-month period, shareholders' net income decreased by 8.0% to $5.12 billion, with diluted EPS at $22.67, down from $23.81 in the prior year.
- Medical claims payable increased to $17.1 billion, reflecting higher benefit expenses and an increase in incurred claims.
- The company repurchased approximately $2.13 billion of common stock during the nine months ended September 30, 2025, compared to $1.09 billion in the prior year period.
- Total medical membership slightly declined by 0.9% to 45.4 million members, primarily due to decreases in BlueCard® business and Medicaid membership attrition, offset by growth in Medicare Advantage.
- The company finalized its acquisition of Centers and CareBridge in late 2024, with initial accounting adjustments impacting goodwill and intangible assets.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Elevance Health, Inc. kept $0.02.
- Revenue$50.71B100.0%
- Cost of revenue−$5.38B10.6%
- Gross profit$45.33B89.4%
- Operating costs−$44.04B86.8%
- Operating income$1.29B2.6%
- Interest, other & tax−$108.0M0.2%
- Net income$1.19B2.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 21, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $50.71B$45.11B | +12.4% |
| Cost of Revenue | $5.38B$5.09B | +5.6% |
| Gross Profit | $45.33B$40.01B | +13.3% |
| SG&A Expenses | $5.27B$5.27B | +0.1% |
| Operating Income | $1.29B$1.41B | −8.0% |
| Net Income | $1.19B$1.01B | +17.8% |
| EPS (Basic) | $5.32$4.38 | +21.5% |
| EPS (Diluted) | $5.32$4.36 | +22.0% |
| Shares Outstanding (Basic) | 223.30M231.90M | −3.7% |
| Shares Outstanding (Diluted) | 223.70M233.10M | −4.0% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the third quarter of 2025?
Revenue growth was primarily driven by premium rate increases in the Health Benefits segment in response to medical cost trends, recent acquisitions, and growth in the Medicare Advantage business. Partially offsetting this was Medicaid membership attrition.
Why did net income decrease for the first nine months of 2025 compared to the same period in 2024?
The decrease in net income for the nine-month period was primarily due to a decreased operating gain within the Health Benefits segment and increased net losses on financial instruments. This was partially offset by increases in operating gain in the CarelonRx and Carelon Services businesses and decreased income tax expense.
How is the company managing its investment portfolio in the current market conditions?
Elevance Health classifies its fixed maturity securities as available-for-sale and reports them at fair value. The company has recorded allowances for credit losses on certain securities experiencing declines in fair value due to unfavorable credit quality changes. Unrealized losses on many securities are attributed to interest rate changes and market conditions, and the company does not intend to sell these investments, thus avoiding recognition of losses unless impaired or required to sell.
What is the company's outlook regarding regulatory changes and their impact?
Elevance Health is closely monitoring various regulatory trends and uncertainties, including provisions from the One Big Beautiful Bill Act (OBBBA), finalized regulations on mental health parity, and ongoing guidance related to Medicare. The company believes it is positioned to adapt to these changes, though potential impacts on operations and financial results are being assessed.
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