Summary
Elevance Health, Inc. reported its financial results for the quarter ended March 31, 2026. Total revenues increased by 2.6% year-over-year to $50.18 billion, driven by premium rate increases and growth in CarelonRx product revenues, partially offset by membership attrition. However, shareholders' net income saw a significant decrease of 19.2% to $1.76 billion, resulting in diluted EPS of $8.00, down from $9.61 in the prior year's quarter. This decline was primarily attributed to higher medical and operating costs across business lines, particularly a substantial loss contingency accrual related to Medicare Advantage risk adjustment data, and increased corporate expenses associated with an operating model transformation program. The company experienced a decrease in total medical membership by 0.9%, largely due to Medicaid eligibility redeterminations and declines in Medicare Advantage and FEP programs. Despite these challenges, the company maintained strong operating cash flow, which significantly increased to $4.33 billion, largely due to favorable working capital movements. Elevance Health continued its capital return program through dividends and share repurchases, demonstrating a commitment to shareholder value.
Key Highlights
- 1Total revenues increased by 2.6% to $50.18 billion, driven by premium increases and CarelonRx growth.
- 2Shareholders' net income decreased by 19.2% to $1.76 billion, with diluted EPS falling to $8.00.
- 3Total medical membership declined by 0.9%, primarily due to Medicaid redeterminations and lower Medicare Advantage enrollment.
- 4Operating cash flow significantly increased by 325.7% to $4.33 billion, driven by favorable working capital changes.
- 5A significant loss contingency accrual of approximately $935 million was recorded for Medicare Advantage risk adjustment data.
- 6The company incurred $129 million in costs for its Operating Model Transformation Program in Q1 2026.
- 7Elevance Health returned $1.12 billion to shareholders through common stock repurchases and paid $376 million in dividends during the quarter.