10-QPeriod: Q2 FY2026

Elevance Health, Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 15, 2026For Securities:ELV

Summary

Elevance Health, Inc. (ELV) reported its financial results for the second quarter and first half of 2026. For the six months ended June 30, 2026, total revenues increased to $100.66 billion from $98.67 billion in the prior year period, driven by premium rate increases in the Health Benefits segment and growth in CarelonRx product revenues, partially offset by membership attrition. However, shareholders' net income for the six months ended June 30, 2026, decreased to $3.23 billion from $3.93 billion in the same period last year. This decline was primarily attributed to a loss contingency accrual for Medicare Advantage risk adjustment data resubmission within the Corporate & Other segment, and decreased operating gains in the Health Benefits and Carelon Services segments. Diluted EPS also saw a decline, reflecting the lower net income. Despite the decrease in net income, the company maintained a strong liquidity position with consolidated cash, cash equivalents, and investments totaling $38.77 billion.

Key Highlights

  • 1Total revenues for the six months ended June 30, 2026, increased by 2.0% to $100.66 billion, primarily driven by premium rate increases and CarelonRx growth, despite a 1.5% decline in total medical membership.
  • 2Shareholders' net income decreased by 17.8% to $3.23 billion for the six months ended June 30, 2026, largely due to a $935 million loss contingency accrual related to Medicare Advantage risk adjustment data resubmission.
  • 3Diluted EPS declined by 15.0% to $14.73 for the six months ended June 30, 2026, reflecting the decrease in net income, partially offset by fewer outstanding shares.
  • 4Operating cash flow for the six months ended June 30, 2026, significantly increased to $6.25 billion from $3.07 billion in the prior year, driven by favorable working capital movements.
  • 5The Health Benefits segment experienced a 42.6% decrease in operating gain for the quarter, primarily due to higher medical costs and strategic investments, while CarelonRx showed a 8.6% increase in operating gain.
  • 6The company has resolved a CMS notice regarding Medicare Advantage risk adjustment data, avoiding sanctions after completing required steps and paying $342 million, with a remaining accrual of $593 million at June 30, 2026.
  • 7Consolidated cash, cash equivalents, and investments totaled $38.77 billion as of June 30, 2026, indicating a strong liquidity position.

Frequently Asked Questions

The primary driver for the decrease in shareholders' net income for the first six months of 2026 was a loss contingency accrual of approximately $935 million related to the resubmission of certain historical Medicare Advantage risk adjustment data. Additionally, decreased operating gains in the Health Benefits and Carelon Services segments contributed to the decline.

Total medical membership declined by 1.5% as of June 30, 2026, compared to the prior year. This decrease was mainly due to attrition in Medicaid membership following eligibility redeterminations, and reductions in Medicare Advantage, Employer Group Risk-Based, and FEP® businesses. These were partially offset by growth in the Employer Group Fee-Based business.

Elevance Health received a notice from CMS in February 2026 regarding Medicare Advantage risk adjustment data submission requirements. The company completed all required steps by July 31, 2026, and CMS confirmed that sanctions will not be imposed, closing the enforcement process. A total of $342 million was paid to CMS, with an remaining accrual balance of $593 million as of June 30, 2026.

Net investment income increased by 36.5% to $1.47 billion for the six months ended June 30, 2026, primarily due to higher income from alternative investments, partially offset by lower income from fixed maturity securities. Net losses on financial instruments decreased due to lower impairments on other invested assets and reduced realized losses on financial instrument sales.