ELEVANCE HEALTH REPORTS THIRD QUARTER 2026
of $6.99; results reflect improved operating performance and a net non-operating benefit of $1.85 per share
Investing in capabilities that improve the member experience, strengthen our competitive advantage, and support long-term growth
- October 21, 2026 - Elevance Health, Inc. (NYSE: ELV) reported third quarter 2026 results ahead of expectations.
"Elevance Health's third quarter results reflect stronger execution across our diversified portfolio and underscore the earnings power of the business. We are raising our 2026 earnings outlook and remain confident in delivering at least 12% growth in adjusted diluted earnings per share in 2027 from our higher earnings baseline of at least $26.75 3 . By bringing together the capabilities of our Health Benefits business and Carelon, we are improving the healthcare experience, strengthening our competitive advantage, and creating long-term value for our shareholders."
2. Refer to GAAP reconciliation tables on pages 13 and 14 herein for reconciliation of GAAP to adjusted measures.
3. FY 2026 earnings baseline excludes non-recurring net investment income and other non-operating items, as well as targeted one-time investments. 1
Elevance Health Consolidated Enterprise Highlights (Unaudited) (In billions) Three Months Ended September 30, September 30, 2026 2025 Operating $50.4 $50.1 Revenue1 Operating $1.3 $1.3 Gain1,2 Adjusted Operating $1.3 $1.3 Gain1,3 Operating 2.5 % 2.6 % Margin1 Adjusted Operating 2.7 % 2.7 % Margin1,3
2. Operating Gain for the three months ended September 30, 2026 and September 30, 2025 includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
3. Adjusted Operating Gain for the three months ended September 30, 2026 and September 30, 2025 excludes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
Operating revenue was $50.4 billion in the third quarter of 2026, an increase of $0.4 billion compared to the prior year quarter. This was driven by higher premium yields, increased CarelonRx product revenue, and growth in service fees, partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk membership.
The benefit expense ratio of 90.6 percent improved 70 basis points, driven by better performance in Medicare Advantage and Individual ACA compared to the prior year.
Days in Claims Payable stood at 44.9 days as of September 30, 2026, an increase of 3.5 days year over year.
The operating expense ratio was 11.4 percent. The adjusted operating expense ratio was 11.3 percent, an increase of 90 basis points from the prior year. The increase principally reflected targeted, one-time investments in capabilities that support our long-term performance, along with spending to advance business growth and quality initiatives.
Operating cash flow of $1.3 billion in the quarter increased $0.1 billion relative to the prior year, primarily reflecting favorable working capital dynamics. As of September 30, 2026, cash and investments at the parent company totaled approximately $2.4 billion.
During the third quarter of 2026, the Company repurchased 0.8 million shares of its common stock for $330 million, at a weighted average price of $398.75 per share, and paid a quarterly dividend of $1.72 per share, representing a distribution of cash totaling $373 million. As of September 30, 2026, the Company had approximately $5.0 billion of Board approved share repurchase authorization remaining. 2
is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard ® , Medicare, Medicaid, and Federal Employee Program businesses.
Health Benefits Reportable Segment Highlights (Unaudited) (In billions) Three Months Ended September 30, September 30, 2026 2025 Operating $43.4 $42.2 Revenue1 Operating $0.4 $0.6 Gain1 Operating 1.0 % 1.4 % Margin1
Health Benefits segment operating revenue was $43.4 billion in the third quarter of 2026, an increase of $1.1 billion, or 3 percent compared to the prior year quarter, driven primarily by higher premium yields and service fee revenue, partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk membership.
Operating gain was $0.4 billion, a decline year over year, reflecting the impact of targeted investments to support our long-term operating model. This was partially offset by the improvement in our benefit expense ratio.
Medical membership of approximately 44.9 million as of September 30, 2026 decreased by 487 thousand compared to the prior year. The decline reflected lower enrollment in our Medicaid, Medicare Advantage, and Employer Group risk- based businesses, partially offset by growth in Commercial fee-based membership. 3
Carelon Reportable Segment Highlights (Unaudited) (In billions) Three Months Ended September 30, September 30, 2026 2025 Operating $19.3 $18.3 Revenue1 Operating $0.9 $0.8 Gain1 Operating 4.7 % 4.2 % Margin1
Operating revenue for Carelon was $19.3 billion in the third quarter of 2026, an increase of $1.0 billion, or 5 percent compared to the prior year quarter. Growth was driven by CarelonRx product revenue and continued expansion of Carelon Services risk-based solutions.
Operating gain for Carelon totaled $0.9 billion, an increase of 17 percent year over year, reflecting strong performance of Carelon Services risk-based solutions and the improved profitability of our specialty pharmacy. 4
On October 20, 2026, the Audit Committee of the Company's Board of Directors declared a fourth quarter 2026 dividend to shareholders of $1.72 per share. The fourth quarter dividend is payable on December 18, 2026 to shareholders of record at the close of business on December 4, 2026.
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 103 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s third quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:
The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on November 20, 2026. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.
1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to pages 13 and 14 for the GAAP reconciliation tables.
Elevance Health Contacts: Investor Relations Media Nathan Rich Leslie Porras Investor.Relations@elevancehealth.com Leslie.Porras@elevancehealth.com
Supplemental Financial Information - Reportable Segments & Health Benefits Revenue Details
Elevance Health Condensed Consolida… Balance Sheet September December (In 30, 31, millions) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets -Unaudited Current assets: Cash and cash $10,348 $9,491 equivalen… Fixed maturity 27,498 26,624 and equity securities Premium and other 24,573 21,542 receivabl… Other current 6,105 5,344 assets Total current 68,524 63,001 assets Long-term 12,719 11,960 investmen… Property and 4,613 4,679 equipment, net Goodwill and other 39,220 39,544 intangible assets Other noncurrent 2,725 2,310 assets Total $127,801 $121,494 assets Liabiliti… and equity Liabiliti… Current liabiliti… Medical claims $18,438 $17,084 payable Short-term — 150 borrowings Current portion of 375 1,099 long-term debt Other current 27,849 22,702 liabiliti… Total current 46,662 41,035 liabiliti… Long-term debt, less 30,382 30,797 current portion Other noncurrent 5,963 5,636 liabiliti… Total 83,007 77,468 liabiliti… Total sharehold… 44,681 43,882 equity Noncontro… 113 144 interests Total 44,794 44,026 equity Total liabiliti… $127,801 $121,494 and equity
Elevance Health Condensed Consolidated Statement of Cash Flows (Unaudited) Nine Months (In millions) Ended September 30 2026 2025 Operating activities Net income $4,557 $5,115 Depreciation and 1,083 1,140 amortization Share-based 210 246 compensation Changes in operating 2,784 -2,753 assets and liabilities Other non-cash -1,122 458 items Net cash provided by 7,512 4,206 operating activities Investing activities Sales and maturities of investments, net of purchases -2,303 -412 (purchases of investments, net of sales and maturities) Purchases of subsidiaries, 2 55 net of cash acquired Purchases of property and -789 -823 equipment Other, net -380 -628 Net cash used in investing -3,470 -1,808 activities Financing activities Net change in short-term and -900 659 long-term borrowings Repurchase and retirement of -1,688 -2,134 common stock Cash dividends -1,122 -1,152 Other, net 539 653 Net cash used in financing -3,171 -1,974 activities Effect of foreign exchange rates -14 1 on cash and cash equivalents Change in cash and cash 857 425 equivalents Cash and cash equivalents at 9,491 8,288 beginning of period Cash and cash equivalents at $10,348 $8,713 end of period
Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard ® , Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).
2. Operating Gain for the three and nine months ended September 30, 2026 included $42 and $133 million, respectively, of transaction and integration related costs, $18 and $147 million, respectively, of business optimization charges, and $8 and $26 million, respectively, of litigation and settlement expenses. Operating Gain for the nine months ended September 30, 2026 also included $935 million for the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026. All adjustments for the three and nine month periods reside in the Corporate & Other reportable segment.
3. Operating Gain for the three and nine months ended September 30, 2025, included $49 and $182 million, respectively, of transaction and integration related costs, ($4) and ($4) million, respectively, of business optimization charges, and $4 and $19 million, respectively, of litigation and settlement expenses. All adjustments for the three and nine month periods reside in the Corporate & Other reportable segment.
4. Operating Gain for the three and nine months ended September 30, 2026, and September 30, 2025, include items excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
5. The Individual business, including ACA products, is reported as part of Commercial Operating Revenue.
1. Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
(Unaudited) This document references non-GAAP measures, including “Adjusted Diluted EPS,” “Adjusted Operating Expense Ratio,” “Adjusted Operating Gain,” “Adjusted Operating Margin,” “Adjusted Shareholders’ Net Income,” and “Adjusted Operating Expense”. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue,” “Operating Gain/Loss,” and “Operating Margin”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of reportable segments operating gain to income before income tax expense is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding.
2. Adjustment item represents the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026. 13
2. Adjustment item represents the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026.
3. Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount. 14
This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan,” "potential," "predict" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward- looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity or sentiment related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations. 15
Full text with the tables
E A R N I N G S R E L E A S E
ELEVANCE HEALTH REPORTS THIRD QUARTER 2026
RESULTS;
RAISES FULL-YEAR GUIDANCE
•
3Q 2026 operating revenue of $50.4 billion, up 0.7% from 3Q 2025
•
3Q 2026 diluted EPS
1
of $6.27 and adjusted diluted EPS
2
of $6.99; results reflect improved operating performance and a net non-operating
benefit of $1.85 per share
•
FY 2026 diluted EPS
1
guidance raised to at least $22.00; adjusted diluted EPS
2
guidance raised to at least $29.00 on continued operating momentum
•
FY 2026 operating cash flow guidance raised to at least $6.5 billion
•
Investing in capabilities that improve the member experience, strengthen our
competitive advantage, and support long-term growth
Indianapolis, IN
- October 21, 2026 - Elevance Health, Inc. (NYSE: ELV) reported third quarter
2026 results ahead of expectations.
"Elevance Health's third quarter results reflect stronger execution across our
diversified portfolio and underscore the earnings power of the business. We are
raising our 2026 earnings outlook and remain confident in delivering at least
12% growth in adjusted diluted earnings per share in 2027 from our higher
earnings baseline of at least $26.75 3 . By bringing together the capabilities
of our Health Benefits business and Carelon, we are improving the healthcare
experience, strengthening our competitive advantage, and creating long-term
value for our shareholders."
Gail K. Boudreaux
President and Chief Executive Officer
1. Earnings per diluted share ("EPS").
2. Refer to GAAP reconciliation tables on pages 13 and 14 herein for
reconciliation of GAAP to adjusted measures.
3. FY 2026 earnings baseline excludes non-recurring net investment income and
other non-operating items, as well as targeted one-time investments.
1
Elevance
Health
Consolidated
Enterprise
Highlights
(Unaudited)
(In billions) Three Months
Ended
September 30, September 30,
2026 2025
Operating $50.4 $50.1
Revenue1
Operating $1.3 $1.3
Gain1,2
Adjusted
Operating $1.3 $1.3
Gain1,3
Operating 2.5 % 2.6 %
Margin1
Adjusted
Operating 2.7 % 2.7 %
Margin1,3
1. See “Basis of Presentation” on page 5 herein.
2. Operating Gain for the three months ended September 30, 2026 and September
30, 2025 includes items that are excluded from adjusted shareholders' net
income. See "GAAP Reconciliation" on pages 13 and 14 herein.
3. Adjusted Operating Gain for the three months ended September 30, 2026 and
September 30, 2025 excludes items that are excluded from adjusted shareholders'
net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
Operating revenue was $50.4 billion in the third quarter of 2026, an increase of
$0.4 billion compared to the prior year quarter. This was driven by higher
premium yields, increased CarelonRx product revenue, and growth in service fees,
partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk
membership.
The benefit expense ratio of 90.6 percent improved 70 basis points, driven by
better performance in Medicare Advantage and Individual ACA compared to the
prior year.
Days in Claims Payable stood at 44.9 days as of September 30, 2026, an increase
of 3.5 days year over year.
The operating expense ratio was 11.4 percent. The adjusted operating expense
ratio was 11.3 percent, an increase of 90 basis points from the prior year. The
increase principally reflected targeted, one-time investments in capabilities
that support our long-term performance, along with spending to advance business
growth and quality initiatives.
Cash Flow & Balance Sheet
Operating cash flow of $1.3 billion in the quarter increased $0.1 billion
relative to the prior year, primarily reflecting favorable working capital
dynamics. As of September 30, 2026, cash and investments at the parent company
totaled approximately $2.4 billion.
During the third quarter of 2026, the Company repurchased 0.8 million shares of
its common stock for $330 million, at a weighted average price of $398.75 per
share, and paid a quarterly dividend of $1.72 per share, representing a
distribution of cash totaling $373 million. As of September 30, 2026, the
Company had approximately $5.0 billion of Board approved share repurchase
authorization remaining.
2
Health Benefits
is comprised of Individual, Employer Group risk-based, Employer Group fee-based,
BlueCard ® , Medicare, Medicaid, and Federal Employee Program businesses.
Health
Benefits
Reportable
Segment
Highlights
(Unaudited)
(In billions) Three Months
Ended
September 30, September 30,
2026 2025
Operating $43.4 $42.2
Revenue1
Operating $0.4 $0.6
Gain1
Operating 1.0 % 1.4 %
Margin1
1. See “Basis of Presentation” on page 5 herein.
Health Benefits segment operating revenue was $43.4 billion in the third quarter
of 2026, an increase of $1.1 billion, or 3 percent compared to the prior year
quarter, driven primarily by higher premium yields and service fee revenue,
partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk
membership.
Operating gain was $0.4 billion, a decline year over year, reflecting the impact
of targeted investments to support our long-term operating model. This was
partially offset by the improvement in our benefit expense ratio.
Medical membership of approximately 44.9 million as of September 30, 2026
decreased by 487 thousand compared to the prior year. The decline reflected
lower enrollment in our Medicaid, Medicare Advantage, and Employer Group risk-
based businesses, partially offset by growth in Commercial fee-based membership.
3
Carelon
is comprised of CarelonRx and Carelon Services.
Carelon
Reportable
Segment
Highlights
(Unaudited)
(In billions) Three Months
Ended
September 30, September 30,
2026 2025
Operating $19.3 $18.3
Revenue1
Operating $0.9 $0.8
Gain1
Operating 4.7 % 4.2 %
Margin1
1. See “Basis of Presentation” on page 5 herein.
Operating revenue for Carelon was $19.3 billion in the third quarter of 2026, an
increase of $1.0 billion, or 5 percent compared to the prior year quarter.
Growth was driven by CarelonRx product revenue and continued expansion of
Carelon Services risk-based solutions.
Operating gain for Carelon totaled $0.9 billion, an increase of 17 percent year
over year, reflecting strong performance of Carelon Services risk-based
solutions and the improved profitability of our specialty pharmacy.
4
Quarterly Dividend
On October 20, 2026, the Audit Committee of the Company's Board of Directors
declared a fourth quarter 2026 dividend to shareholders of $1.72 per share. The
fourth quarter dividend is payable on December 18, 2026 to shareholders of
record at the close of business on December 4, 2026.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to
improve the health of humanity. The company supports consumers, families, and
communities across the entire healthcare journey – connecting them to the care,
support, and resources they need to lead better lives. Elevance Health’s
companies serve approximately 103 million consumers through a diverse portfolio
of industry-leading medical, pharmacy, behavioral, clinical, home health, and
complex care solutions. For more information, please visit
www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on
LinkedIn.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern
Daylight Time (“EDT”) to discuss the company’s third quarter results and
outlook. The conference call should be accessed at least 15 minutes prior to the
start of the call with the following numbers:
888-947-9963 (Domestic) 800-391-9853 (Domestic Replay)
312-470-0178 (International) 203-369-3269 (International Replay)
The access code for today's conference call is 3972058. There is no access code
for the replay. The replay will be available from 11:30 a.m. EDT today, until
the end of the day on November 20, 2026. The call will also be available through
a live webcast at www.elevancehealth.com under the “Investors” link. A webcast
replay will be available following the call.
Basis of Presentation
1. Operating revenue and operating gain/loss are the key measures used by
management to evaluate performance in each of its reporting segments, allocate
resources, set incentive compensation targets and to forecast future operating
performance. Operating gain/loss is calculated as total operating revenue less
benefit expense, cost of products sold and operating expense. It does not
include net investment income, net gains/losses on financial instruments,
interest expense, amortization of other intangible assets, gains/losses on
extinguishment of debt or income taxes, as these items are managed in a
corporate shared service environment and are not the responsibility of operating
segment management. Refer to pages 13 and 14 for the GAAP reconciliation tables.
2. Operating margin is defined as operating gain divided by operating revenue.
Elevance Health Contacts:
Investor Relations Media
Nathan Rich Leslie Porras
Investor.Relations@elevancehealth.com Leslie.Porras@elevancehealth.com
5
Elevance Health
Earnings Release Financial Schedules and Supplementary Information
Quarter & Year-to-Date Ended September 30, 2026
•
Membership and Other Metrics
•
Quarterly & Year-to-Date Consolidated Statements of Income
•
Condensed Consolidated Balance Sheet
•
Condensed Consolidated Statement of Cash Flows
•
Supplemental Financial Information - Reportable Segments & Health Benefits
Revenue Details
•
Supplemental Financial Information - Reconciliation of Medical Claims Payable
•
Reconciliation of Non-GAAP Financial Measures
6
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8
Elevance
Health
Condensed
Consolida…
Balance
Sheet September December
(In 30, 31,
millions) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets -Unaudited
Current
assets:
Cash and
cash $10,348 $9,491
equivalen…
Fixed
maturity 27,498 26,624
and equity
securities
Premium
and other 24,573 21,542
receivabl…
Other
current 6,105 5,344
assets
Total
current 68,524 63,001
assets
Long-term 12,719 11,960
investmen…
Property
and 4,613 4,679
equipment,
net
Goodwill
and other 39,220 39,544
intangible
assets
Other
noncurrent 2,725 2,310
assets
Total $127,801 $121,494
assets
Liabiliti…
and equity
Liabiliti…
Current
liabiliti…
Medical
claims $18,438 $17,084
payable
Short-term — 150
borrowings
Current
portion of 375 1,099
long-term
debt
Other
current 27,849 22,702
liabiliti…
Total
current 46,662 41,035
liabiliti…
Long-term
debt, less 30,382 30,797
current
portion
Other
noncurrent 5,963 5,636
liabiliti…
Total 83,007 77,468
liabiliti…
Total
sharehold… 44,681 43,882
equity
Noncontro… 113 144
interests
Total 44,794 44,026
equity
Total
liabiliti… $127,801 $121,494
and equity
9
Elevance Health
Condensed
Consolidated
Statement of
Cash
Flows
(Unaudited)
Nine Months
(In millions) Ended September
30
2026 2025
Operating
activities
Net income $4,557 $5,115
Depreciation
and 1,083 1,140
amortization
Share-based 210 246
compensation
Changes in
operating 2,784 -2,753
assets and
liabilities
Other non-cash -1,122 458
items
Net cash
provided by 7,512 4,206
operating
activities
Investing
activities
Sales and
maturities of
investments,
net
of purchases -2,303 -412
(purchases of
investments,
net of sales
and maturities)
Purchases of
subsidiaries, 2 55
net of cash
acquired
Purchases of
property and -789 -823
equipment
Other, net -380 -628
Net cash used
in investing -3,470 -1,808
activities
Financing
activities
Net change in
short-term and -900 659
long-term
borrowings
Repurchase and
retirement of -1,688 -2,134
common
stock
Cash dividends -1,122 -1,152
Other, net 539 653
Net cash used
in financing -3,171 -1,974
activities
Effect of
foreign
exchange rates -14 1
on cash
and cash
equivalents
Change in cash
and cash 857 425
equivalents
Cash and cash
equivalents at 9,491 8,288
beginning
of period
Cash and cash
equivalents at $10,348 $8,713
end of
period
10
REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits (comprised of
Individual, Employer Group risk-based, Employer Group fee-based, BlueCard ® ,
Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon
Services; and Corporate & Other (comprised of businesses that do not
individually meet the quantitative thresholds for an operating division as well
as corporate expenses not allocated to our other reportable segments).
…
…
…
…
…
…
… N…
… … M…
… … E…
… S…
… 30
… 2… … 2… … C…
…
…
… … $… 2… % $… … … %
…
… … 1… 5… % 3… … … %
… … 7… 5… % 2… … … %
…
…
& 6 1… -… % 16 … … %
…
… … -… … -… … N…
…
… … $… 0… % $… … … %
…
…
…
…
… … $… -… % $… … … %
…
… … 5… 1… % 1… … … %
… … 2… 3… % 1… … … %
…
…
& … -… … -… … N…
…
…
… … $… -… % $… … … %
…
…
…
… 1… % … % … … % 3… % (…
… … bp
… 5… % … % … … % 5… % —
… bp
… 3… % … % … … % 5… % (…
… … bp
… … (…
… 2… % … % … … % 4… % bp
…
…
…
…
…
… N…
… … M…
… … E…
… S…
… 30
… 2… … 2… … C…
…
…
…
…
… … $… 3… % $… … … %
… … 2… 6… % 7… … … %
… … 1… 0… % 3… … … %
… … 1… 5… % 4… … … %
…
… … 4… -… % 1… … … %
…
…
…
… … $… 2… % $… … … %
…
…
1. See “Basis of Presentation” on page 5 herein.
2. Operating Gain for the three and nine months ended September 30, 2026
included $42 and $133 million, respectively, of transaction and integration
related costs, $18 and $147 million, respectively, of business optimization
charges, and $8 and $26 million, respectively, of litigation and settlement
expenses. Operating Gain for the nine months ended September 30, 2026 also
included $935 million for the Company's current best estimate of the identified
potential exposure for certain historical Medicare Advantage risk adjustment
data related to the CMS notice to the Company dated February 27, 2026. All
adjustments for the three and nine month periods reside in the Corporate & Other
reportable segment.
3. Operating Gain for the three and nine months ended September 30, 2025,
included $49 and $182 million, respectively, of transaction and integration
related costs, ($4) and ($4) million, respectively, of business optimization
charges, and $4 and $19 million, respectively, of litigation and settlement
expenses. All adjustments for the three and nine month periods reside in the
Corporate & Other reportable segment.
4. Operating Gain for the three and nine months ended September 30, 2026, and
September 30, 2025, include items excluded from adjusted shareholders' net
income. See "GAAP Reconciliation" on pages 13 and 14 herein.
5. The Individual business, including ACA products, is reported as part of
Commercial Operating Revenue.
6. "NM" = calculation not meaningful.
11
E…
H…
R… Ni…
of Mo…
M… En… Ye…
C… Se… En…
P… 30 De…
(… 20… 20… 31
m… (U… (U… 20… 20… 2…
──────────────────────────────────────────────────────────────────────────────
G…
m…
c…
p… $ 16… $ 15… $ 15… $ 15… $ 15…
b…
of
p…
C…
m…
c…
p… -48 -13 -13 -7 -6
b…
of
p…
N…
m…
c…
p… 16… 15… 15… 15… 15…
b…
of
p…
B…
c…
a… — 344 344 143 —
p…
a…
N…
i…
m…
c…
C… 10… 10… 14… 12… 12…
y…
P…
y… -1… -1… -1… -1… -1…
r…
T…
n…
i… 10… 10… 14… 12… 12…
m…
c…
N…
p…
a…
t…
C…
y… 92… 93… 13… 11… 10…
m…
c…
P…
y… 13… 12… 13… 13… 12…
m…
c…
T…
n… 10… 10… 14… 12… 11…
p…
N…
m…
c…
p… 18… 16… 16… 15… 15…
e…
of
p…
C…
m…
c…
p… 45 44 48 13 7
e…
of
p…
G…
m…
c…
p… $ 18… $ 16… $ 16… $ 15… $ 15…
e…
of
p…
C…
y…
m…
c…
p…
as
a
p… 85… % 86… % 89… % 88… % 88… %
of
c…
y…
n…
i…
m…
c…
P…
y…
r…
in
t…
c…
y…
as
a
p…
of
p…
y… 8.4 % 8.9 % 9.0 % 12… % 11… %
n…
m…
c…
p…
l…
p…
y…
r…
in
t…
c…
y…
P…
y…
r…
in
t…
c…
y…
as
a 0.9 % 1.0 % 1.0 % 1.4 % 1.4 %
p…
of
p…
y…
n…
i…
m…
c…
1. Negative amounts reported for net incurred medical claims related to prior
years result from claims being settled for amounts less than originally
estimated.
2. Excludes insurance lines other than short duration.
12
Elevance Health
GAAP Reconciliation
(Unaudited)
This document references non-GAAP measures, including “Adjusted Diluted EPS,”
“Adjusted Operating Expense Ratio,” “Adjusted Operating Gain,” “Adjusted
Operating Margin,” “Adjusted Shareholders’ Net Income,” and “Adjusted Operating
Expense”. These non-GAAP measures are intended to aid investors when comparing
Elevance Health’s financial results among periods and are not intended to be
alternatives to any measure calculated in accordance with GAAP. Reconciliations
of these non-GAAP measures to the most directly comparable measures calculated
in accordance with GAAP are available below. In addition to these non-GAAP
measures, references are made to the measures “Operating Revenue,” “Operating
Gain/Loss,” and “Operating Margin”. Operating revenue and operating gain/loss
are the key measures used by management to evaluate performance in each of its
reportable segments, allocate resources, set incentive compensation targets and
to forecast future operating performance. Operating gain/loss is calculated as
total operating revenue less benefit expense, cost of products sold and
operating expense. It does not include net investment income, net gains/losses
on financial instruments, interest expense, amortization of other intangible
assets and gains/losses on extinguishment of debt or income taxes, as these
items are managed in a corporate shared service environment and are not the
responsibility of operating segment management. Each of these measures is
provided to further aid investors in understanding and analyzing Elevance
Health’s operating and financial results. A reconciliation of Operating Revenue
to Total Revenue is set forth in the Consolidated Statements of Income herein. A
reconciliation of reportable segments operating gain to income before income tax
expense is provided below. Prior amounts may be grouped differently to conform
to the current presentation. Net adjustment items per share may not sum due to
rounding.
(…
m… Th… Ni…
e… Mo… Mo…
p… En… En…
s… Se… Se…
d… 20… 30 20… C… 2… 30 2… C…
──────────────────────────────────────────────────────────────────────────────
S…
n… $ 1,… $ 1,… 14… % $ 4,… $ 5,… -1… %
i…
A…
/
(…
A…
of
o… 106 162 328 464
i…
a…
N…
l…
on 48 1 182 596
f…
i…
T…
a…
i… 42 49 133 182
r…
c…
B…
o… 18 -4 147 -4
p…
c…
L…
a… 8 4 26 19
s…
e…
A…
r…
to — — 935 —
C…
n…
T…
i…
of -67 -52 -4… -3…
n…
a…
N…
a… 155 160 1,… 950
i…
A…
s… $ 1,… $ 1,… 12… % $ 5,… $ 6,… -2… %
n…
i…
S…
e…
p… $ 6.… $ 5.… 17… % $ 21… $ 22… -7… %
d…
s…
A…
/
(…
A…
of
o… 0.… 0.… 1.… 2.…
i…
a…
N…
l…
on 0.… — 0.… 2.…
f…
i…
T…
a…
i… 0.… 0.… 0.… 0.…
r…
c…
B…
o… 0.… -0… 0.… -0…
p…
c…
L…
a… 0.… 0.… 0.… 0.…
s…
e…
A…
r…
to — — 4.… —
C…
n…
T…
i…
of -0… -0… -1… -1…
n…
a…
N…
a… 0.… 0.… 6.… 4.…
i…
A…
s…
e… $ 6.… $ 6.… 15… % $ 27… $ 26… 0.7 %
p…
d…
s…
Th… N…
Mo… M…
En… E…
Se… S…
30 30
(… 20… 20… C… 2… 2… C…
m…
I…
b…
i… $ 1,… $ 1,… 27… % $ 6,… $ 6,… -7… %
t…
e…
N…
i… -1… -6… -2… -1…
i…
N…
l…
on 48 1 182 596
f…
i…
I… 358 351 1,… 1,…
e…
A…
of
o… 106 162 328 464
i…
a…
R…
s… $ 1,… $ 1,… -2… % $ 5,… $ 6,… -2… %
o…
g…
1. Adjustment item resides in the Corporate & Other reportable segment.
2. Adjustment item represents the Company's current best estimate of the
identified potential exposure for certain historical Medicare Advantage risk
adjustment data related to the CMS notice to the Company dated February 27,
2026.
13
Elevance Health
GAAP Reconciliation
(Unaudited)
… N…
… M…
… E…
… … S…
… 2… … … C… … 30 2… …
──────────────────────────────────────────────────────────────────────────────
…
… $ … $ 1… … % $ 5… $ … -… %
…
…
…
/
…
…
…
… … 49 1… …
…
…
…
… … -4 1… …
…
…
…
… 8 4 26 …
…
…
…
…
… — — 9… —
…
…
…
… … 49 1… …
…
…
…
… $ … $ 1… … % $ 6… $ … -… %
…
…
… $ 5… $ … … % $ … $ 1… 1… %
…
… … % 2… % (… 3… % … % …
… bp …
… — …
… … % 2… % bp 4… % … % …
…
T… …
M… …
E… …
S… …
30 …
… 2… … C… … 2… …
…
… $ … $ 5… … % $ 1… $ … 1… %
…
…
/
…
…
…
… … -… -… …
…
…
…
… … 4 -… 4
…
…
…
… … -4 -… …
…
…
…
…
… — — -… —
…
…
…
… … -… -… …
…
…
… $ … $ 5… … % $ 1… $ … 6… %
…
… $ 5… $ … … % $ … $ 1… 1… %
…
… 90 …
… … % 1… % bp 1… % … % …
…
…
… … % 1… % 90 1… % … % …
… bp …
…
F…
Y…
2…
O…
…
… …
… …
… …
…
…
/
…
…
…
… $…
…
…
…
…
… $…
…
…
…
…
… $…
…
…
…
…
… $…
…
…
…
… $…
…
…
…
… $…
…
…
…
… …
… …
…
…
…
… $…
…
…
… …
… …
… …
…
…
1. Adjustment item resides in the Corporate & Other reportable segment.
2. Adjustment item represents the Company's current best estimate of the
identified potential exposure for certain historical Medicare Advantage risk
adjustment data related to the CMS notice to the Company dated February 27,
2026.
3. Adjustment item represents the midpoint of a projected range and serves as
the estimated full year adjustment amount.
14
Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
reflect our views about future events and financial performance and are
generally not historical facts. Words such as “expect,” “feel,” “believe,”
“will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,”
“forecast,” “plan,” "potential," "predict" and similar expressions are intended
to identify forward-looking statements. These statements include, but are not
limited to: financial projections and estimates and their underlying
assumptions; statements regarding plans, objectives and expectations with
respect to future operations, products and services; and statements regarding
future performance. Such statements are subject to certain risks and
uncertainties, many of which are difficult to predict and generally beyond our
control, that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking statements. You
are cautioned not to place undue reliance on these forward-looking statements
that speak only as of the date hereof. You are also urged to carefully review
and consider the various risks and other disclosures discussed in our reports
filed with the U.S. Securities and Exchange Commission from time to time, which
attempt to advise interested parties of the factors that affect our business.
Except to the extent required by law, we do not update or revise any forward-
looking statements to reflect events or circumstances occurring after the date
hereof. These risks and uncertainties include, but are not limited to: trends in
healthcare costs and utilization rates; reduced enrollment; our ability to
secure and implement sufficient premium rates; the impact of large scale medical
emergencies, such as public health epidemics and pandemics, and other
catastrophes; the impact of new or changes in existing federal, state and
international laws or regulations, including laws and regulations impacting
healthcare, insurance, pharmacy services and other diversified products and
services, or their enforcement or application; the impact of cyber-attacks or
other privacy or data security incidents or our failure to comply with any
privacy, data or security laws or regulations, including any investigations,
claims or litigation related thereto; failure to effectively maintain and
modernize our information systems, or failure of our information systems or
technology, including artificial intelligence, to operate as intended; failure
to effectively maintain the availability and integrity of our data; changes in
economic and market conditions, as well as regulations that may negatively
affect our liquidity and investment portfolios; competitive pressures and our
ability to adapt to changes in the industry and develop and implement strategic
growth opportunities; risks and uncertainties regarding Medicare and Medicaid
programs, including those related to non-compliance with the complex regulations
imposed thereon; our ability to maintain and achieve improvement in Centers for
Medicare and Medicaid Services Star Ratings and other quality scores and funding
risks with respect to revenue received from participation therein; a negative
change in our healthcare product mix; costs and other liabilities associated
with litigation, government investigations, audits or reviews; our ability to
contract with providers on cost-effective and competitive terms; risks
associated with providing healthcare, pharmacy and other diversified products
and services, including medical malpractice or professional liability claims and
non-compliance by any party with the pharmacy services agreement between us and
CaremarkPCS Health, L.L.C.; the effects of any negative publicity or sentiment
related to the health benefits industry in general or us in particular; risks
associated with mergers, acquisitions, joint ventures and strategic alliances;
possible impairment of the value of our intangible assets if future results do
not adequately support goodwill and other intangible assets; possible
restrictions in the payment of dividends from our subsidiaries and increases in
required minimum levels of capital; our ability to repurchase shares of our
common stock and pay dividends on our common stock due to the adequacy of our
cash flow and earnings and other considerations; the potential negative effect
from our substantial amount of outstanding indebtedness and the risk that
increased interest rates or market volatility could impact our access to or
further increase the cost of financing; a downgrade in our financial strength
ratings; events that may negatively affect our licenses with the Blue Cross and
Blue Shield Association; intense competition to attract and retain employees;
risks associated with our international operations; and various laws and
provisions in our governing documents that may prevent or discourage takeovers
and business combinations.
15