Elevance Health Inc Earnings
Elevance Health Inc has reported its third quarter 2025 financials, demonstrating a solid growth trajectory with a particular focus on maintaining affordability and enhancing member experiences. This quarter’s results showcase the company's strategic focus on expanding its value-based care partnerships and leveraging AI-enabled digital solutions to streamline access to healthcare services.
Elevance Health Inc Results
The following table provides an overview of key financial metrics for Elevance Health Inc during the third quarter of 2025. The figures illustrate a comparison with the previous year’s third quarter:
| Financial Metric | Q3 2025 Result | Q3 2024 Result | YoY Change |
|---|---|---|---|
| Operating Revenue (billions) | $50.1 | $44.7 | +12.0% |
| Diluted EPS (GAAP) | $5.32 | Not provided | Not provided |
| Adjusted Diluted EPS (Non-GAAP) | $6.03 | Not provided | Not provided |
The company reported operating revenue of $50.1 billion, a 12% increase from $44.7 billion in the same quarter last year. This growth is attributed to higher premium yields within the Health Benefits segment and successful recent acquisitions.
Revenue Breakdown
Elevance Health Inc's revenue breakdown across its major segments is delineated in the table below:
| Segment | Q3 2025 Revenue (billions) | Q3 2024 Revenue (billions) | Growth Rate |
|---|---|---|---|
| Health Benefits | $42.2 | $38.2 | +10.5% |
| Carelon | $18.3 | $13.8 | +32.6% |
Segment Analysis
Health Benefits Segment:
The Health Benefits segment saw considerable growth, with an operating revenue of $42.2 billion, reflecting an approximately 10.5% increase from the prior year. This growth was spearheaded by higher premium yields, burgeoning Medicare Advantage membership, and strategic acquisitions. Despite the gains, ongoing Medicaid membership losses due to eligibility reverifications presented a challenge.
Carelon Segment:
The Carelon segment recorded a robust 32.6% increase in operating revenue, totaling $18.3 billion for the quarter. This growth was driven significantly by recent acquisitions in home health and pharmacy services, as well as an uptick in CarelonRx product revenue and the expansion of Carelon Services’ risk-based solutions.
Key Developments
During the quarter, Elevance Health Inc made strides in solidifying its operational backbone. The company demonstrated its commitment to long-term value creation by focusing on affordability and member experience, leveraging technological and digital advancements. It also addressed dynamic healthcare environment challenges, focusing on expense management discipline and positioning its businesses for sustainable growth.
A notable development this quarter was the Provider Settlement Agreement payment related to the ongoing BCBSA litigation, which affected operating cash flow, resulting in a year-to-date operating cash flow of $4.2 billion.
Comments from Company Officers
Elevance Health's President and CEO Gail K. Boudreaux remarked, "Our third-quarter results were in line with expectations and reflect disciplined execution across Elevance Health. In a dynamic healthcare environment, we're focused on advancing affordability and elevating the member experience through our growing value-based care partnerships and AI-enabled digital solutions that simplify access and improve outcomes."
Dividends and Share Repurchases
Reflecting its strong capital return policy, Elevance Health Inc returned $3.3 billion of capital to shareholders year-to-date. During the third quarter, the company executed a share repurchase program, buying back 2.9 million shares for about $875 million at an average price of $303.48 per share. Additionally, a quarterly dividend of $1.71 per share was declared, bringing the total cash distribution to $381 million for the quarter.
Elevance Health Inc Stock Forecast
Considering the robust financial performance and strategic initiatives undertaken by Elevance Health Inc, the stock shows a promising trajectory moving forward. Based on fundamental analysis that takes into account financial performance, market conditions, and current stock trends, stock projections for the company are estimated as follows:
- High Projection: $350
- Low Projection: $290
These projections reflect a comprehensive understanding of Elevance’s business strategies, financial resilience, and market dynamics that are poised to support its growth in the upcoming quarters.
In conclusion, Elevance Health Inc has showcased its strategic prowess through consistent revenue growth and disciplined operational execution in the third quarter of 2025. The company's financial outlook remains optimistic, buoyed by its commitment to enhancing member experiences, smart investment in technology, and effective cost management strategies.
