01—Abstract
Summary
Summary of the 8-K filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Elevance Health, Inc. (ELV) has reported its third quarter 2026 financial results, demonstrating a slight increase in operating revenue to $50.4 billiona, up 0.7% year-over-year.
The company's performance exceeded expectations, leading to an upward revision of its full-year 2026 guidance for both diluted EPS and adjusted diluted EPS. This positive outlook is supported by improved operating performance and a notable net non-operating benefit recognized in the quarter. The company highlighted increased operating cash flow and continues to invest in capabilities aimed at enhancing the member experience, strengthening its competitive position, and driving long-term growth.
The Health Benefits segment saw revenue growth driven by premium yields and service fees, although membership declined in key areas like Medicare Advantage and Medicaid. Conversely, the Carelon segment, encompassing CarelonRx and Carelon Services, experienced robust revenue and operating gain growth, underscoring the strength of its pharmacy and services offerings.
02—Key points
Key Highlights
- Elevance Health reported Q3 2026 operating revenue of $50.4 billion, a 0.7% increase from the prior year.
- Diluted EPS for Q3 2026 was $6.27, with Adjusted Diluted EPS at $6.99, benefiting from improved operating performance and a significant net non-operating benefit.
- Full-year 2026 guidance was raised for both diluted EPS (to at least $22.00) and adjusted diluted EPS (to at least $29.00).
- Full-year 2026 operating cash flow guidance was also increased to at least $6.5 billion.
- The Health Benefits segment revenue increased by 3% year-over-year, driven by higher premium yields and service fees, despite a decrease in overall medical membership.
- The Carelon segment delivered strong results with a 5% revenue increase and a 17% rise in operating gain, driven by CarelonRx and Carelon Services.
- The company repurchased 0.8 million shares for $330 million in Q3 2026 and declared a quarterly dividend of $1.72 per share.
03—Questions
Frequently Asked Questions
What is the company's updated full-year 2026 financial outlook?
Elevance Health has raised its full-year 2026 guidance. Diluted EPS is now expected to be at least $22.00, and adjusted diluted EPS is projected to be at least $29.00. Additionally, operating cash flow guidance has been increased to at least $6.5 billion.
What drove the increase in operating revenue for the third quarter?
Operating revenue in the third quarter of 2026 increased to $50.4 billion primarily due to higher premium yields, increased CarelonRx product revenue, and growth in service fees. This was partially offset by lower membership in Medicare Advantage, Medicaid, and Employer Group risk businesses.
How did the different business segments perform in Q3 2026?
The Health Benefits segment saw its operating revenue grow by 3% year-over-year, driven by premium yields and service fees, though operating gain declined due to targeted investments. The Carelon segment showed robust growth with a 5% increase in operating revenue and a significant 17% rise in operating gain, attributed to CarelonRx and Carelon Services.
Are there any significant headwinds or one-time items impacting the results?
While the company raised its guidance, the results were influenced by targeted, one-time investments in capabilities and business growth initiatives, which increased the operating expense ratio. The filing also notes a significant accrual for a potential exposure related to historical Medicare Advantage risk adjustment data, impacting year-to-date operating gain, though this is addressed in guidance adjustments.
04—Continue