The significant EPS beat and raised guidance are strong positive signals. Traders should watch for continued margin improvement in Health Benefits and membership trends in Medicare Advantage and Medicaid.
Price Chart
Executive Summary
Elevance Health reported Q3 2026 adjusted diluted EPS of $6.99, significantly above the $4.66 consensus, and raised full-year adjusted EPS guidance to at least $29.00 from at least $27.00. Operating revenue of $50.4 billion grew 0.7% YoY, in line with expectations, driven by higher premium yields and CarelonRx growth, partially offset by membership declines in Medicare Advantage and Medicaid. The strong beat and guidance raise signal improved operating performance and earnings power.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted diluted EPS of $6.99 vs consensus of $4.66, a 50% beat
- Q3 2026 GAAP diluted EPS of $6.27 vs $5.32 in Q3 2025, up 17.9% YoY
- Q3 2026 operating revenue of $50.4 billion, up 0.7% YoY from $50.1 billion
- FY 2026 adjusted diluted EPS guidance raised to at least $29.00 from at least $27.00
- FY 2026 GAAP diluted EPS guidance raised to at least $22.00 from at least $20.10
- FY 2026 operating cash flow guidance raised to at least $6.5 billion from at least $6.0 billion
- Benefit expense ratio improved 70 bps YoY to 90.6%
- Carelon operating gain increased 17% YoY to $0.9 billion
- Health Benefits segment operating margin declined to 1.0% from 1.4% YoY
- Medical membership declined 1.1% YoY to 44.9 million
- Company repurchased 0.8 million shares for $330 million in Q3
- Quarterly dividend maintained at $1.72 per share
Financial Impact
Adjusted EPS beat consensus by 50% ($6.99 vs $4.66); FY guidance raised by ~$2.00 at the midpoint
Risk Factors
- Ongoing Medicare Advantage risk adjustment exposure ($935M accrual) and potential for additional CMS actions
- Continued membership declines in Medicare Advantage (-15.5% YoY) and Medicaid (-4.9% YoY)
- Health Benefits operating margin compression to 1.0% from 1.4% YoY
- Operating expense ratio increased 90 bps YoY to 11.4% due to targeted investments
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001156039-26-000068 |
| Document: elv-20261021.htm | 0001156039-26-000068 |
| Document: 0001156039-26-000068-index-headers.html | 0001156039-26-000068 |
| Document: 0001156039-26-000068-index.html | 0001156039-26-000068 |
| Document: 0001156039-26-000068.txt | 0001156039-26-000068 |
| 8-K Data (Synthetic) | 0001156039-26-000068 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 144 | $439.95 $431.32 | ▼ −1.96% | ▼ −2.67% | $431.32 (−1.96%) |
Oct 21, 2026 5d ago | 8-K | $434.13 $445.28 | ▲ +2.57% | ▲ +3.75% | $431.32 (−0.65%) |
Oct 20, 2026 6d ago | Institutional Cluster | $434.13 $445.28 | ▲ +2.57% | ▲ +3.75% | $431.32 (−0.65%) |
Sep 10, 2026 6w ago | 8-K | $416.54 $418.72 | ▲ +0.52% | ▼ −0.33% | $431.32 (+3.55%) |
Aug 27, 2026 8w ago | Institutional Cluster | $399.11 $394.43 | ▼ −1.17% | ▼ −0.95% | $431.32 (+8.07%) |
Aug 20, 2026 9w ago | Court Ruling | $400.54 $402.63 | ▲ +0.52% | ▲ +0.82% | $431.32 (+7.68%) |
Aug 17, 2026 10w ago | Court Ruling | $396.54 $396.72 | ▲ +0.05% | ▼ −0.16% | $431.32 (+8.77%) |
Jul 23, 2026 13w ago | GOVT-CONTRACT | $376.04 $376.72 | ▲ +0.18% | ▲ +0.16% | $431.32 (+14.70%) |
Jul 17, 2026 14w ago | Insider Cluster | $373.11 $382.23 | ▲ +2.44% | ▲ +2.61% | $431.32 (+15.60%) |
Jul 15, 2026 14w ago | 8-K | $390.33 $372.85 | ▼ −4.48% | ▼ −3.94% | $431.32 (+10.50%) |
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