Core Viewpoint - Elevance Health (NYSE: ELV) remains a highly discussed stock, particularly in comparison to its larger competitor UnitedHealth Group (UNH), which is set to report earnings on October 28 [1]. Company Summary - Elevance Health is currently under the spotlight in the healthcare sector, with significant attention from investors and analysts [1]. Industry Context - The healthcare industry is characterized by competitive dynamics, with Elevance Health operating in the shadow of larger players like UnitedHealth Group, indicating a challenging environment for market share and investor interest [1].

Elevance Health, Inc. (NYSE:ELV) is one of the best long term low volatility stocks to buy right now. Elevance Health, Inc. (NYSE:ELV) reported its fiscal Q3 2025 results on October 21, announcing $50.1 billion in operating revenue for the quarter, up 12.0% compared to the same quarter last year. Diluted EPS for the quarter reached $5.32, while adjusted diluted EPS was $6.03. Elevance Health (ELV) Drops 18.66% After Dismal Q2 Earnings The company reaffirmed its fiscal year 2025 benefit expense ratio and ...

Earnings Overview - Earnings season is gaining momentum with major companies like Tesla, Netflix, General Motors, and Ford reporting results this week [1][3] - As of October 17, 12% of S&P 500 companies have reported results, with analysts expecting an 8.5% increase in earnings per share for Q3, marking the ninth consecutive quarter of positive earnings growth but a slowdown from the 12% growth in Q2 [1][2] Sector Performance - A diverse range of sectors is represented in the earnings reports, including airlines, toy manufacturers, and telecom providers, with consumer spending updates expected from companies like Procter & Gamble and Deckers Outdoors [4] - Companies such as GE Vernova reported a 55% increase in orders to $14.6 billion, driven by its power and electrification equipment division, despite profits being below expectations [8][9] Company-Specific Highlights - Hilton reported adjusted earnings of $2.11 per share, exceeding expectations, while revenue per available room (RevPAR) declined 1.1% year-over-year [11][12] - AT&T surpassed subscriber estimates due to strong demand for bundled services and iPhone promotions, leading to a nearly 2% rise in stock [13][14] - Intuitive Surgical's stock surged 15% after beating earnings estimates, driven by strong demand for surgical robots [15] - Texas Instruments' stock fell 7% following a weaker-than-expected Q4 outlook, with projected sales of $4.22 billion to $4.58 billion [16][17] - Capital One reported a 23% increase in total net revenue to $15.4 billion, with earnings per share of $4.83, surpassing expectations [19][20] - Philip Morris experienced an 8% drop in stock after reporting a 3.2% decline in cigarette shipments, although smokeless product shipments increased by 16.6% [21][22][23] - 3M raised its annual earnings outlook after reporting sales of $6.3 billion, slightly above estimates, with adjusted earnings per share of $2.19 [24][25] - Halliburton's stock rose over 5% after reporting adjusted earnings of $0.58 per share, exceeding estimates despite a revenue decline to $5.6 billion [26][27] - GE Aerospace's stock increased over 2.5% after reporting a 26% revenue growth to $11.3 billion and raising its full-year EPS forecast [30][31] Market Sentiment - Bank of America noted that 76% of S&P 500 companies reporting so far have exceeded earnings expectations, indicating a stronger-than-usual earnings season [42][43] - Ally Financial reported better-than-expected consumer health, with earnings per share of $1.18, surpassing estimates [45][46]

Core Insights - The article discusses the author's extensive experience in executive management and knowledge in insurance/reinsurance, Global and Asia Pacific markets, climate change, and ESG [1]. Group 1 - The author holds an honours degree in economics and politics with a focus on economic development [1]. - The author has 36 years of experience in executive management, indicating a deep understanding of various markets [1]. - The author's investment activities are conducted in a personal capacity, suggesting independence in investment decisions [1].

Earnings Overview - Earnings season is gaining momentum with major companies like Tesla, Netflix, General Motors, and Ford reporting results this week [1][3] - As of October 17, 12% of S&P 500 companies have reported, with analysts expecting an 8.5% increase in earnings per share for Q3, marking the ninth consecutive quarter of positive growth but a slowdown from 12% in Q2 [1][2] Company-Specific Highlights - **Netflix**: Stock fell after missing earnings estimates, with operating profit impacted [8] - **Intuitive Surgical**: Beat earnings estimates with strong demand for surgical robots, resulting in a 15% stock increase [9] - **Texas Instruments**: Stock dropped 7% due to a weaker-than-expected Q4 outlook, projecting sales of $4.22 billion to $4.58 billion, below analyst estimates [10][11] - **Capital One**: Reported a 23% increase in net revenue to $15.4 billion, exceeding expectations, with earnings per share at $4.83 [13][14] - **Philip Morris**: Stock fell 8% after reporting a 3.2% decline in cigarette shipments, although smokeless product sales increased by 16.6% [15][16][17] - **3M**: Stock rose less than 1% after raising its annual earnings outlook, reporting Q3 sales of $6.3 billion, slightly above estimates [18][19] - **Halliburton**: Revenue increased despite falling oil prices, with adjusted earnings of $0.58 per share beating estimates [20][21] - **GE Aerospace**: Stock rose over 2.5% after reporting a 26% revenue increase to $11.3 billion and raising full-year guidance [23][24] - **Northrop Grumman**: Raised its 2025 profit forecast due to increased demand from geopolitical conflicts [28] - **Elevance**: Stock rose 6% after beating quarterly profit estimates [29] Market Trends - Bank of America noted that 76% of S&P 500 companies reporting so far have exceeded earnings expectations, higher than the average of 68% [36][37] - The upcoming week will see a significant number of companies reporting, with 44% of S&P 500 companies expected to release earnings [38]

Key Takeaways ELV posted Q3 EPS of $6.03, beating estimates by 21.1% despite a 29.9% year-over-year decline.Revenues rose 12% to $50.1B, driven by strong premiums, product sales and net investment income.Carelon revenues surged 33% on buyouts and scaling services, while MA growth offset Medicaid declines.Elevance Health, Inc. (ELV) reported third-quarter 2025 adjusted earnings per share (EPS) of $6.03, which surpassed the Zacks Consensus Estimate by 21.1%. The bottom line dropped 29.9% year over year.Operat ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides comprehensive financial data for Elevance Health, Inc., including statements of financial position, income, comprehensive income, cash flows, and equity, along with detailed explanatory notes [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements of Elevance Health, Inc. for the period ended September 30, 2025, including balance sheets, statements of income, comprehensive income, cash flows, and changes in equity, along with detailed notes to these financial statements [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity as of September 30, 2025, and December 31, 2024 | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------- | :---------------------- | :---------------------- | :---------------- | :------- | | Total Assets | $122,749 | $116,889 | $5,860 | 5.0% | | Total Liabilities | $78,667 | $75,463 | $3,204 | 4.2% | | Total Equity | $44,082 | $41,426 | $2,656 | 6.4% | | Cash & Cash Equivalents | $8,713 | $8,288 | $425 | 5.1% | | Medical Claims Payable | $17,148 | $15,746 | $1,402 | 8.9% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This statement details the company's revenues, expenses, net income, and earnings per share for the three and nine months ended September 30, 2025 and 2024 | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | Change (Millions) | % Change | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :---------------- | :------- | :------------------------------------- | :------------------------------------- | :---------------- | :------- | | Total Revenues | $50,711 | $45,106 | $5,605 | 12.4% | $149,378 | $131,569 | $17,809 | 13.5% | | Total Expenses | $49,305 | $43,733 | $5,572 | 12.7% | $142,883 | $124,271 | $18,612 | 15.0% | | Net Income | $1,187 | $1,008 | $179 | 17.8% | $5,115 | $5,558 | $(443) | (8.0)% | | Diluted EPS | $5.32 | $4.36 | $0.96 | 22.0% | $22.67 | $23.81 | $(1.14) | (4.8)% | | Dividends per share | $1.71 | $1.63 | $0.08 | 4.9% | $5.13 | $4.89 | $0.24 | 4.9% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income components, reflecting total shareholders' comprehensive income for the reported periods | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | Change (Millions) | % Change | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | Change (Millions) | % Change | | :------------------------------------- | :------------------------------------- | :------------------------------------- | :---------------- | :------- | :------------------------------------- | :------------------------------------- | :---------------- | :------- | | Net Income | $1,187 | $1,008 | $179 | 17.8% | $5,115 | $5,558 | $(443) | (8.0)% | | Other comprehensive income | $219 | $898 | $(679) | (75.6)% | $608 | $824 | $(216) | (26.2)% | | Total Shareholders' Comprehensive Income | $1,406 | $1,914 | $(508) | (26.5)% | $5,719 | $6,386 | $(667) | (10.4)% | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30, 2025 and 2024 | Metric | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | Change (Millions) | % Change | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :---------------- | :------- | | Net cash provided by operating activities | $4,206 | $5,102 | $(896) | (17.6)% | | Net cash used in investing activities | $(1,808) | $(3,529) | $1,721 | 48.8% | | Net cash used in financing activities | $(1,974) | $(215) | $(1,759) | 818.1% | | Change in cash and cash equivalents | $425 | $1,360 | $(935) | (68.8)% | - The decrease in net cash provided by operating activities was primarily due to the **Provider Settlement Agreement payment** made in September 2025 and **lower net income** for the nine months ended September 30, 2025[189](index=189&type=chunk)[232](index=232&type=chunk) [Consolidated Statements of Changes in Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) This statement details the changes in total shareholders' equity, retained earnings, and accumulated other comprehensive loss for the reported periods | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :---------------------- | :---------------------- | :---------------- | :------- | | Total Shareholders' Equity | $43,953 | $41,315 | $2,638 | 6.4% | | Retained Earnings | $35,586 | $33,549 | $2,037 | 6.1% | | Accumulated Other Comprehensive Loss | $(543) | $(1,147) | $604 | (52.7)% | - Repurchase and retirement of common stock, including excise tax, amounted to **$(884) million** for the three months ended September 30, 2025, and **$(2,134) million** for the nine months ended September 30, 2025[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations supporting the consolidated financial statements, covering accounting policies, acquisitions, and other financial matters [Note 1. Organization](index=9&type=section&id=Note%201.%20Organization) This note describes Elevance Health's business, its market position as a leading health insurer, and its reportable operating segments - Elevance Health is one of the largest health insurers in the United States, serving approximately **45.4 million medical members** as of September 30, 2025[23](index=23&type=chunk)[157](index=157&type=chunk) - The company operates through four reportable segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other[24](index=24&type=chunk)[158](index=158&type=chunk) - Core go-to-market brands include Anthem Blue Cross/Blue Shield, Wellpoint, and Carelon[26](index=26&type=chunk)[160](index=160&type=chunk) [Note 2. Basis of Presentation and Significant Accounting Policies](index=9&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note outlines the basis of financial statement preparation, key revenue recognition policies, and the adoption and impact of new accounting standards - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial reporting and should be read in conjunction with the 2024 Annual Report on Form 10-K[25](index=25&type=chunk)[27](index=27&type=chunk) - Revenue recognition policies include premiums for risk-based contracts recognized over the coverage period, service fees for fee-based groups recognized over time, and product revenue for pharmacy services recognized using the gross method when control is transferred[44](index=44&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - ASU 2023-05 (Business Combinations—Joint Venture Formations) was adopted on January 1, 2025, with no material impact on financial statements[50](index=50&type=chunk) - Upcoming accounting guidance includes ASU 2023-09 (Income Taxes, effective after Dec 15, 2024), ASU 2025-05 (Financial Instruments—Credit Losses, effective after Dec 15, 2025), ASU 2024-03 (Expense Disaggregation, effective after Dec 15, 2026), and ASU 2025-06 (Internal-Use Software, effective after Dec 15, 2027), with impacts currently being assessed[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Note 3. Business Acquisitions](index=14&type=section&id=Note%203.%20Business%20Acquisitions) This note details the acquisitions of Centers Plan for Healthy Living LLC and CareBridge, including the allocation of purchase prices to assets and goodwill - On December 31, 2024, Elevance Health acquired Centers Plan for Healthy Living LLC, a managed long-term care plan, allocating **$211 million** to finite-lived intangible assets, **$690 million** to indefinite-lived intangible assets, and **$246 million** to goodwill[57](index=57&type=chunk) - On December 10, 2024, the company acquired CareBridge, a value-based healthcare company, allocating **$305 million** to finite-lived intangible assets and **$1,811 million** to goodwill, including a **$27 million** contingent consideration[58](index=58&type=chunk) [Note 4. Business Optimization Initiative](index=15&type=section&id=Note%204.%20Business%20Optimization%20Initiative) This note describes the '2023-2024 Business Efficiency Program,' its objectives, and the associated liability balances for employee termination costs - The '2023-2024 Business Efficiency Program' was finalized by December 31, 2024, focusing on operating efficiency, investment refinement, and physical footprint optimization, including IT asset write-offs, contract exit costs, and staff reductions[59](index=59&type=chunk) - The ending liability balance for employee termination costs under the program was **$109 million** at September 30, 2025, down from **$224 million** at December 31, 2024[60](index=60&type=chunk) [Note 5. Investments](index=15&type=section&id=Note%205.%20Investments) This note provides details on the company's fixed maturity securities, unrealized gains and losses, and equity method investments in Mosaic Health and Liberty Dental | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :----------------------------------- | :---------------------- | :---------------------- | | Total Fixed Maturity Securities (Fair Value) | $27,394 | $26,236 | | Gross Unrealized Gains | $639 | $284 | | Gross Unrealized Losses | $(542) | $(970) | | Allowance For Credit Losses | $(13) | $(6) | - Unrealized losses on fixed maturity securities are primarily due to elevated interest rates, but the company does not intend to sell these investments before anticipated recovery[63](index=63&type=chunk) - Elevance Health holds equity method investments in Mosaic Health (approximately **40% ownership**) and Liberty Dental (**40% minority interest ownership**)[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Net losses on investments | $0 | $(126) | $(594) | $(379) | [Note 6. Derivative Financial Instruments](index=20&type=section&id=Note%206.%20Derivative%20Financial%20Instruments) This note explains the company's use of derivatives to manage financial risks and details the carrying values of net put options related to equity investments - The company uses derivative financial instruments, such as interest rate swaps, futures, forward contracts, and options, to manage interest rate, foreign exchange, and credit exposure[79](index=79&type=chunk) - The carrying value of the net put option related to the Mosaic Health equity investment was **$1,330 million** as of September 30, 2025, measured at fair value at the initial investment date and not subsequently marked to market[83](index=83&type=chunk) - The carrying value of the net put option related to the Liberty Dental equity investment was **$396 million** as of September 30, 2025, also measured at fair value at the initial investment date and not subsequently marked to market[84](index=84&type=chunk) [Note 7. Fair Value](index=21&type=section&id=Note%207.%20Fair%20Value) This note presents the fair value measurements of various financial assets and liabilities, categorized by valuation input levels, and discusses nonrecurring fair value measurements | Category | Level I (Millions) | Level II (Millions) | Level III (Millions) | Total (Millions) | | :----------------------------------- | :----------------- | :------------------ | :----------------- | :--------------- | | Cash equivalents | $3,219 | $— | $— | $3,219 | | Fixed maturity securities, available-for-sale | $— | $26,012 | $1,382 | $27,394 | | Equity securities | $1,131 | $29 | $60 | $1,220 | | Other invested assets - common equity securities | $7 | $— | $— | $7 | | Securities lending collateral | $— | $2,881 | $— | $2,881 | | Derivatives - other assets | $— | $92 | $— | $92 | | Total assets | $4,357 | $29,014 | $1,442 | $34,813 | - Nonrecurring fair value measurements include assets acquired and liabilities assumed in the Centers and CareBridge acquisitions, and net put options on Mosaic Health (**$1,400 million**) and Liberty Dental (**$444 million**) as of September 30, 2025[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) [Note 8. Income Taxes](index=25&type=section&id=Note%208.%20Income%20Taxes) This note provides the company's income tax expense and effective tax rates, explaining the factors contributing to changes in the effective tax rate | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Income Tax Expense | $219 | $365 | $1,380 | $1,740 | | Effective Tax Rate | 15.6% | 26.6% | 21.2% | 23.8% | - The decrease in the effective income tax rate for both the three and nine months ended September 30, 2025, was primarily due to the impact of certain investment credits and the non-recurrence of a prior year uncertain tax position[100](index=100&type=chunk) [Note 9. Medical Claims Payable](index=26&type=section&id=Note%209.%20Medical%20Claims%20Payable) This note details the changes in medical claims payable, including incurred claims, payments, and the recognition of prior period redundancies | Metric | 2025 (Millions) | 2024 (Millions) | | :----------------------------------- | :-------------- | :-------------- | | Gross medical claims payable, beginning of period | $15,580 | $15,865 | | Net incurred medical claims | $107,157 | $91,105 | | Net payments | $106,244 | $91,787 | | Gross medical claims payable, end of period | $16,868 | $15,185 | - Prior periods redundancies of **$1,266 million** were recognized for the nine months ended September 30, 2025, primarily due to favorable trend factors in late 2024[102](index=102&type=chunk)[103](index=103&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) - The ratio of current year medical claims paid as a percent of current year net medical claims incurred was **86.3%** for the nine months ended September 30, 2025, indicating slightly faster claims processing speed compared to 2024 (**85.4%**)[226](index=226&type=chunk) [Note 10. Debt](index=27&type=section&id=Note%2010.%2E%20Debt) This note outlines the company's outstanding senior unsecured notes, recent debt issuances, and amendments to its revolving credit facility - Total outstanding senior unsecured notes were **$31,897 million** at September 30, 2025[108](index=108&type=chunk) - In September 2025, the company issued **$3,000 million** in new notes (2028, 2032, 2036, and 2055 Notes) to redeem **$900 million** of existing debt and for general corporate purposes[109](index=109&type=chunk) - The 5-Year Facility, a senior revolving credit facility, was amended to extend its maturity to September 2030 and increase the credit available from **$4,000 million to $5,000 million**. The debt-to-capital ratio was **42.1%** at September 30, 2025, in compliance with covenants[111](index=111&type=chunk)[238](index=238&type=chunk) [Note 11. Commitments and Contingencies](index=28&type=section&id=Note%2011.%2E%20Commitments%20and%20Contingencies) This note discusses significant legal proceedings, including antitrust settlements and a Department of Justice lawsuit, along with major contractual obligations - In the Blue Cross Blue Shield Antitrust Litigation, the Subscriber Settlement Agreement became effective in June 2024, and the Provider Settlement Agreement received final approval in August 2025, leading to a **$666 million monetary settlement payment** by the company on September 19, 2025[120](index=120&type=chunk)[122](index=122&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) - The company is a defendant in a civil lawsuit by the U.S. Department of Justice regarding alleged false certification of diagnosis data for Medicare Part C risk adjustment, with fact discovery ongoing until December 9, 2025[124](index=124&type=chunk) - Contractual obligations include a remaining commitment of approximately **$1,746 million** under an IT infrastructure agreement through June 2029 and a pharmacy services agreement with CVS through December 31, 2027[126](index=126&type=chunk)[127](index=127&type=chunk) [Note 12. Capital Stock](index=31&type=section&id=Note%2012.%2E%20Capital%20Stock) This note provides information on stock option and restricted stock unit grants, cash dividends paid, and common stock repurchase activities - For the nine months ended September 30, 2025, **0.6 million stock options** were granted at a weighted-average option price of **$394.27 per share**, and **0.6 million restricted stock units** were granted at a weighted-average grant date fair value of **$393.39 per share**[130](index=130&type=chunk)[133](index=133&type=chunk) - Cash dividends of **$1.71 per share** were paid for each of the first three quarters of 2025[135](index=135&type=chunk) - The company repurchased **6.1 million shares** of common stock at an aggregate cost of **$2,134 million** for the nine months ended September 30, 2025, with **$7,166 million** remaining under the common stock repurchase program authorization[137](index=137&type=chunk) [Note 13. Accumulated Other Comprehensive (Loss) Income](index=34&type=section&id=Note%2013.%2E%20Accumulated%20Other%20Comprehensive%20(Loss)%20Income) This note details the components and changes in accumulated other comprehensive loss, primarily driven by net unrealized investment gains | Metric | Sep 30, 2025 (Millions) | Sep 30, 2024 (Millions) | | :----------------------------------- | :---------------------- | :---------------------- | | Total end of period accumulated other comprehensive loss | $(543) | $(489) | - The accumulated other comprehensive loss improved from **$(1,147) million** at December 31, 2024, to **$(543) million** at September 30, 2025, primarily driven by net unrealized investment gains[8](index=8&type=chunk)[139](index=139&type=chunk) [Note 14. Shareholders' Earnings per Share](index=35&type=section&id=Note%2014.%2E%20Shareholders'%20Earnings%20per%20Share) This note presents the denominators used for basic and diluted earnings per share calculations, including the impact of anti-dilutive stock options | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Denominator for basic shareholders' earnings per share | 223.3 | 231.9 | 225.0 | 232.3 | | Denominator for diluted shareholders' earnings per share | 223.7 | 233.1 | 225.6 | 233.6 | - Weighted-average shares related to certain stock options (**2.2 million** for Q3 2025 and **1.9 million** for 9 months 2025) were excluded from diluted EPS calculations as they were anti-dilutive[140](index=140&type=chunk) [Note 15. Segment Information](index=35&type=section&id=Note%2015.%2E%20Segment%20Information) This note provides detailed operating revenue and gain information for the Health Benefits, CarelonRx, Carelon Services, and Corporate & Other segments | Segment | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | | :---------------- | :------------------------------------- | :------------------------------------- | :------------- | :------------------------------------- | :------------------------------------- | :------------- | | Health Benefits | $42,246 | $38,278 | 10.4% | $125,259 | $112,695 | 11.1% | | CarelonRx | $10,997 | $9,143 | 20.3% | $31,756 | $25,984 | 22.2% | | Carelon Services | $7,324 | $4,638 | 57.9% | $21,301 | $13,192 | 61.5% | | Corporate & Other | $149 | $74 | 101.4% | $546 | $323 | 69.0% | | Total Operating Revenue | $50,087 | $44,719 | 12.0% | $148,273 | $130,215 | 13.9% | | Segment | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | | :---------------- | :------------------------------------- | :------------------------------------- | :------------- | :------------------------------------- | :------------------------------------- | :------------- | | Health Benefits | $601 | $1,604 | (62.5)% | $4,378 | $6,036 | (27.5)% | | CarelonRx | $556 | $619 | (10.2)% | $1,694 | $1,639 | 3.4% | | Carelon Services | $219 | $184 | 19.0% | $1,110 | $682 | 62.8% | | Corporate & Other | $(81) | $(999) | (91.9)% | $(292) | $(1,168) | (75.0)% | | Total Operating Gain | $1,295 | $1,408 | (8.0)% | $6,890 | $7,189 | (4.2)% | - Health Benefits operating gain decreased due to **higher medical cost trends** and increased investments, with rates for Affordable Care Act health plans and Medicaid being inadequate to cover medical cost trends for the nine-month period[211](index=211&type=chunk)[215](index=215&type=chunk) - Carelon Services operating gain increased significantly due to the **CareBridge acquisition** and improved performance in post-acute care, specialty care solutions, and behavioral health services[213](index=213&type=chunk)[218](index=218&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=40&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on Elevance Health's financial condition and results of operations, highlighting business trends, regulatory changes, significant operational items, and detailed financial performance across segments, liquidity, and capital resources [Overview](index=40&type=section&id=Overview) This overview introduces Elevance Health as a leading US health company and outlines its four reportable operating segments - Elevance Health is a leading US health company serving approximately **45.4 million medical members** as of September 30, 2025[157](index=157&type=chunk) - The company reports results in four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other[158](index=158&type=chunk) [Business Trends](index=41&type=section&id=Business%20Trends) This section discusses elevated medical cost trends, membership shifts, pricing challenges in government programs, and the company's pharmacy services delegation - Medical cost trends are elevated due to membership shifts from Medicaid to Individual ACA, lower effectuation rates, higher population acuity, and increased utilization of services[161](index=161&type=chunk)[162](index=162&type=chunk) - Pricing of Medicare and Medicaid programs may not adequately reflect current underlying healthcare cost trends due to timing lags in rate establishment[163](index=163&type=chunk)[164](index=164&type=chunk) - CarelonRx offers comprehensive pharmacy services, with certain core services delegated to CVS Health Corporation through December 31, 2027[166](index=166&type=chunk)[167](index=167&type=chunk) [Regulatory Trends and Uncertainties](index=42&type=section&id=Regulatory%20Trends%20and%20Uncertainties) This section addresses the impact of new legislation like the OBBBA and IRA, and potential adverse effects from increased Medicare Advantage RADV audits - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, includes provisions impacting Medicaid eligibility, state directed payments, provider taxes, and ACA cost sharing, with most effective dates in 2027-2028[169](index=169&type=chunk) - The Inflation Reduction Act of 2022 (IRA) extends enhanced Premium Tax Credits through 2025; their expiration could have a **material adverse effect** on the business[173](index=173&type=chunk) - CMS plans to substantially increase the scale and pace of Risk Adjustment Data Validation (RADV) audits of Medicare Advantage plans, which could adversely affect financial condition and results of operations[175](index=175&type=chunk) [Other Significant Items](index=43&type=section&id=Other%20Significant%20Items) This section covers key operational matters, recent business acquisitions, and significant litigation developments impacting the company [Business and Operational Matters](index=43&type=section&id=Business%20and%20Operational%20Matters) This subsection highlights the improvement in the company's 2026 Medicare Advantage Star Ratings, with a higher percentage of members in 4.0+ Star plans - The company's 2026 Medicare Advantage Star Ratings reflect approximately **55% of members** enrolled in plans rated at least **4.0 Stars or higher**, an increase from **40%** for 2025 Star Ratings[177](index=177&type=chunk) [Business Acquisitions](index=43&type=section&id=Business%20Acquisitions_MD%26A) This subsection details the strategic acquisitions of Centers Plan and CareBridge, along with significant equity investments in Mosaic Health - Acquisitions of Centers Plan for Healthy Living LLC and CareBridge were completed in December 2024, aligning with strategic growth in Health Benefits and Carelon Services segments[178](index=178&type=chunk) - An equity investment of **$2,580 million** was made in Mosaic Health in August 2024, resulting in approximately **35% minority interest ownership**, with an additional **$300 million equity contribution** in January 2025 for an additional **5% ownership**[179](index=179&type=chunk) [Litigation Matters](index=43&type=section&id=Litigation%20Matters) This subsection provides updates on the Blue Cross Blue Shield Antitrust Litigation, including the final approval and payment of the Provider Settlement Agreement - In the Blue Cross Blue Shield Antitrust Litigation, the Subscriber Settlement Agreement became effective in June 2024, and the Provider Settlement Agreement received final approval in August 2025, leading to a **$666 million payment** by the company in September 2025[183](index=183&type=chunk)[184](index=184&type=chunk) [Selected Operating Performance](index=44&type=section&id=Selected%20Operating%20Performance) This section presents key financial metrics including total operating revenue, net income, diluted EPS, and operating cash flow, alongside medical membership trends | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :------- | :------------------------------------- | :------------------------------------- | :------- | | Total Operating Revenue | $50,087 | $44,719 | 12.0% | $148,273 | $130,215 | 13.9% | | Net Income | $1,187 | $1,008 | 17.8% | $5,115 | $5,558 | (8.0)% | | Diluted EPS | $5.32 | $4.36 | 22.0% | $22.67 | $23.81 | (4.8)% | | Operating Cash Flow (9 months) | $4,206 | $5,102 | (17.6)% | | | | - Total medical membership declined by **0.9%** for the twelve months ended September 30, 2025, primarily due to decreases in BlueCard business and Medicaid attrition, partially offset by increases in Medicare Advantage[186](index=186&type=chunk) [Membership and Other Metrics](index=45&type=section&id=Membership%20and%20Other%20Metrics) This section provides detailed membership data across various customer types, along with CarelonRx script volumes and Carelon Services consumers served | Customer Type | Sep 30, 2025 | Sep 30, 2024 | Change | % Change | | :---------------------- | :----------- | :----------- | :----- | :------- | | Individual | 1,354 | 1,299 | 55 | 4.2% | | Employer Group Risk-Based | 3,616 | 3,672 | (56) | (1.5)% | | BlueCard® | 6,394 | 6,677 | (283) | (4.2)% | | Employer Group Fee-Based | 20,608 | 20,589 | 19 | 0.1% | | Medicare Advantage | 2,245 | 2,047 | 198 | 9.7% | | Medicare Supplement | 877 | 894 | (17) | (1.9)% | | Medicaid | 8,645 | 8,926 | (281) | (3.1)% | | Federal Employee Program | 1,630 | 1,656 | (26) | (1.6)% | | Total Medical Membership | 45,369 | 45,760 | (391) | (0.9)% | | Metric | Sep 30, 2025 (Millions) | Sep 30, 2024 (Millions) | Change | % Change | | :---------------------------- | :---------------------- | :---------------------- | :----- | :------- | | CarelonRx Quarterly Adjusted Scripts | 85.0 | 80.2 | 4.8 | 6.0% | | Carelon Services Consumers Served | 97.6 | 101.3 | (3.7) | (3.7)% | - Dental membership increased by **4.9%** and Vision membership increased by **4.4%**, primarily due to favorable sales in Employer Group business and higher sales across various health plans, respectively[192](index=192&type=chunk)[193](index=193&type=chunk) [Consolidated Results of Operations](index=46&type=section&id=Consolidated%20Results%20of%20Operations) This section analyzes the consolidated financial performance, including revenue, expenses, net income, and key ratios, explaining the drivers of changes | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :------- | :------------------------------------- | :------------------------------------- | :------- | | Total operating revenue | $50,087 | $44,719 | 12.0% | $148,273 | $130,215 | 13.9% | | Net investment income | $625 | $551 | 13.4% | $1,701 | $1,524 | 11.6% | | Net losses on financial instruments | $(1) | $(125) | 99.2% | $(596) | $(371) | (60.6)% | | Benefit expense | $38,140 | $32,949 | 15.8% | $110,158 | $94,067 | 17.1% | | Cost of products sold | $5,380 | $5,093 | 5.6% | $15,656 | $13,738 | 14.0% | | Operating expense | $5,272 | $5,269 | 0.1% | $15,569 | $15,221 | 2.3% | | Net income | $1,187 | $1,008 | 17.8% | $5,115 | $5,558 | (8.0)% | | Diluted shareholders' earnings per share | $5.32 | $4.36 | 22.0% | $22.67 | $23.81 | (4.8)% | | Effective tax rate | 15.6% | 26.6% | (1100) bp| 21.2% | 23.8% | (260) bp | | Benefit expense ratio | 91.3% | 89.5% | 180 bp | 88.9% | 87.2% | 170 bp | | Operating expense ratio | 10.5% | 11.8% | (130) bp | 10.5% | 11.7% | (120) bp | - The increase in net income for the three months ended September 30, 2025, was primarily due to **decreased losses on financial instruments** and **decreased income tax expense**[187](index=187&type=chunk) - The decrease in net income for the nine months ended September 30, 2025, was primarily due to **decreased operating gain** within the Health Benefits segment and **increased net losses on financial instruments**[187](index=187&type=chunk) [Reportable Segments Results of Operations](index=48&type=section&id=Reportable%20Segments%20Results%20of%20Operations) This section provides a detailed breakdown of operating revenue and gain for each reportable segment, highlighting performance drivers and trends | Segment | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | | :---------------- | :------------------------------------- | :------------------------------------- | :------------- | :------------------------------------- | :------------------------------------- | :------------- | | Health Benefits | $42,246 | $38,278 | 10.4% | $125,259 | $112,695 | 11.1% | | CarelonRx | $6,163 | $5,889 | 4.7% | $18,021 | $15,920 | 13.2% | | Carelon Services | $1,953 | $881 | 121.7% | $5,771 | $2,476 | 133.1% | | Corporate & Other | $149 | $74 | 101.4% | $546 | $323 | 69.0% | | Total Operating Revenue | $50,087 | $44,719 | 12.0% | $148,273 | $130,215 | 13.9% | | Segment | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change (YoY) | | :---------------- | :------------------------------------- | :------------------------------------- | :------------- | :------------------------------------- | :------------------------------------- | :------------- | | Health Benefits | $601 | $1,604 | (62.5)% | $4,378 | $6,036 | (27.5)% | | CarelonRx | $556 | $619 | (10.2)% | $1,694 | $1,639 | 3.4% | | Carelon Services | $219 | $184 | 19.0% | $1,110 | $682 | 62.8% | | Corporate & Other | $(81) | $(999) | (91.9)% | $(292) | $(1,168) | (75.0)% | | Total Operating Gain | $1,295 | $1,408 | (8.0)% | $6,890 | $7,189 | (4.2)% | - Health Benefits operating gain decreased due to **higher medical cost trends** and increased investments, with rates for Affordable Care Act health plans and Medicaid being inadequate to cover medical cost trends for the nine-month period[211](index=211&type=chunk)[215](index=215&type=chunk) - Carelon Services operating gain increased significantly due to the **CareBridge acquisition** and improved performance in post-acute care, specialty care solutions, and behavioral health services[213](index=213&type=chunk)[218](index=218&type=chunk) [Critical Accounting Policies and Estimates](index=51&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the most subjective accounting estimates, particularly the liability for medical claims payable, and the impact of prior period redundancies - The most subjective accounting estimate is the liability for medical claims payable, which relies on significant judgment regarding trend and completion factors[222](index=222&type=chunk)[223](index=223&type=chunk) - Favorable development of **$1,266 million** was recognized for the nine months ended September 30, 2025, primarily from favorable trend factors in late 2024[224](index=224&type=chunk)[225](index=225&type=chunk) - The percentage of prior year redundancies in the current period was **8.9%** for the nine months ended September 30, 2025, indicating an appropriate and consistent level of reserve conservatism[227](index=227&type=chunk)[228](index=228&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) This section examines the company's cash flow, liquidity position, capital structure, and available financial resources to meet future obligations and strategic needs [Sources and Uses of Capital](index=52&type=section&id=Sources%20and%20Uses%20of%20Capital) This subsection identifies the primary sources of cash receipts and the main categories of cash disbursements for the company - Primary cash receipts include premiums, product revenue, service fees, investment income, and proceeds from investment sales, borrowings, and stock issuance[229](index=229&type=chunk) - Primary cash disbursements include claims payments, operating expenses, taxes, investment purchases, interest expense, debt payments, acquisitions, capital expenditures, and stock/debt repurchases[229](index=229&type=chunk) [Liquidity](index=53&type=section&id=Liquidity) This subsection analyzes changes in operating cash flow, the total cash and investment position, and the consolidated debt-to-capital ratio - Net cash provided by operating activities decreased by **$896 million** to **$4,206 million** for the nine months ended September 30, 2025, primarily due to the **Provider Settlement Agreement payment** and **lower net income**[232](index=232&type=chunk) - Consolidated cash, cash equivalents, and investments in fixed maturity and equity securities totaled **$37,327 million** at September 30, 2025, an increase of **$1,611 million** since December 31, 2024[234](index=234&type=chunk) - The consolidated debt-to-capital ratio improved to **42.1%** at September 30, 2025, from **43.0%** at December 31, 2024[238](index=238&type=chunk) - The parent company held **$2,647 million** in cash, cash equivalents, and investments available for general corporate use[236](index=236&type=chunk) [Capital Resources](index=54&type=section&id=Capital%20Resources) This subsection details the company's available capital resources, including shelf registration, revolving credit facility, and commercial paper program - The company has a shelf registration statement for future debt or equity securities offerings and a **$5,000 million** senior revolving credit facility (5-Year Facility) extended to September 2030[240](index=240&type=chunk)[241](index=241&type=chunk) - An authorized commercial paper program of up to **$4,000 million** had no outstanding amounts at September 30, 2025[242](index=242&type=chunk) - Regulated subsidiaries' risk-based capital (RBC) levels exceeded all mandatory requirements as of December 31, 2024[246](index=246&type=chunk) [Future Sources and Uses of Liquidity](index=55&type=section&id=Future%20Sources%20and%20Uses%20of%20Liquidity) This subsection outlines the company's expectations regarding the adequacy of its current and future liquidity sources to cover anticipated disbursements - The company expects current cash, future operating cash receipts, investments, and available credit facilities to be adequate for expected cash disbursements over the next twelve months and for future operations and strategic transactions[247](index=247&type=chunk)[248](index=248&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=57&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to the company's 2024 Annual Report on Form 10-K for a discussion of market risks, stating that there have been no material changes to these risks since December 31, 2024 - No material changes to market risks have occurred since December 31, 2024[251](index=251&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=57&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective as of September 30, 2025, and reported no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were deemed effective as of September 30, 2025[252](index=252&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended September 30, 2025[253](index=253&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section presents additional disclosures on legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference the information regarding legal proceedings from Note 11, 'Commitments and Contingencies,' in Part I, Item 1 of this Quarterly Report on Form 10-Q - Information regarding legal proceedings is incorporated by reference from Note 11, 'Commitments and Contingencies'[254](index=254&type=chunk) [ITEM 1A. RISK FACTORS](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section refers to the risk factors discussed in Part I, Item 1A of the company's 2024 Annual Report on Form 10-K, stating that there have been no material changes to these risk factors - No material changes to the risk factors as disclosed in Part I, Item 1A of the 2024 Annual Report on Form 10-K[256](index=256&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=58&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's common stock repurchase activities for the three months ended September 30, 2025, including the number of shares purchased and the remaining authorization under the program | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs (Millions) | | :------------------------------ | :------------------------------- | :--------------------------- | :--------------------------------------------------------------------------------------- | | July 1, 2025 to July 31, 2025 | 944,457 | $306.12 | $7,753 | | August 1, 2025 to August 31, 2025 | 1,289,067 | $295.88 | $7,372 | | September 1, 2025 to September 30, 2025 | 652,318 | $314.80 | $7,166 | | Total (3 months) | 2,885,842 | | | - The common stock repurchase program is discretionary, has no set duration, and the company reserves the right to discontinue it at any time[258](index=258&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=58&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there were no defaults upon senior securities during the reported period - No defaults upon senior securities occurred[259](index=259&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=58&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section indicates that there were no mine safety disclosures required for the reported period - No mine safety disclosures were reported[260](index=260&type=chunk) [ITEM 5. OTHER INFORMATION](index=58&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section reports that no directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended September 30, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers in Q3 2025[261](index=261&type=chunk) [ITEM 6. EXHIBITS](index=59&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, debt instrument forms, employment agreements, certifications, and XBRL financial data - Exhibits include amended and restated articles of incorporation, bylaws, forms of notes, employment agreements, CEO/CFO certifications, and XBRL instance documents[262](index=262&type=chunk) [SIGNATURES](index=60&type=section&id=SIGNATURES) This section contains the signatures of the authorized officers, Mark B. Kaye (Executive Vice President and Chief Financial Officer) and Ronald W. Penczek (Chief Accounting Officer and Controller), certifying the report on October 21, 2025 - The report was signed by Mark B. Kaye, Executive Vice President and Chief Financial Officer, and Ronald W. Penczek, Chief Accounting Officer and Controller, on October 21, 2025[266](index=266&type=chunk)

美股周二早盘，医疗技术公司Elevance Health（ELV）股价下跌1%，此前该公司公布第三季度业绩，非 GAAP每股收益为6.03美元，比预期高出1.09美元。尽管医疗补助计划会员人数有所减少，但在更高的 保费收益率和联邦医疗保险优势计划会员增长的推动下，营收同比增长12.1%至500.9亿美元。 来源：环球市场播报 ...

Elevance Health (ELV) reported $50.09 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 12%. EPS of $6.03 for the same period compares to $8.37 a year ago.The reported revenue represents a surprise of +1.15% over the Zacks Consensus Estimate of $49.52 billion. With the consensus EPS estimate being $4.98, the EPS surprise was +21.08%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Elevance Health (NYSE:ELV) Q3 2025 Earnings Call October 21, 2025 08:30 AM ET Company ParticipantsNathan Rich - VP of Investor RelationsAJ Rice - Managing DirectorPete Haytaian - President of CarelonMark Kaye - CFO and EVPLisa Gill - Managing DirectorAndrew Mok - DirectorGail Boudreaux - President and CEOBen Hendrix - VPLance Wilkes - Managing DirectorFelicia Norwood - President of Government Health BenefitsDave Windley - Managing DirectorConference Call ParticipantsKevin Fishbeck - Director and Senior Equi ...