Revenue Sources - Approximately 32% of total consolidated revenues were generated from U.S. government agencies for the years ended December 31, 2025, 2024, and 2023, respectively [25]. - The Medicaid business includes managed care alternatives through public-funded healthcare programs, covering various services in 17 states and Puerto Rico [41]. - Approximately 53.5% of premium revenue and 18.7% of medical membership were subject to minimum MLR regulations for the year ended December 31, 2025 [99]. - Approximately 54.2% of premium revenue and 18.4% of medical membership were subject to minimum MLR regulations for the year ended December 31, 2024 [99]. Health Benefits and Services - The Health Benefits segment offers a comprehensive suite of health plans and services, with key drivers including membership levels, premium pricing, and medical cost trends [27]. - CarelonRx, which includes pharmacy services, was enhanced by the acquisition of Paragon Healthcare, Inc. in March 2024, contributing to affordability and outcomes for members [27]. - The Carelon Services segment integrates physical, behavioral, pharmacy, and social-care capabilities, targeting chronic and complex populations [28]. - Carelon integrates services to deliver whole health affordably, powered by analytics [38]. - Carelon Health provides value-based solutions and comprehensive care management services, including home health and behavioral health management [47]. - A comprehensive behavioral health case management program supports members with various conditions, promoting access to appropriate treatment and community resources [71]. - The company has implemented a "Food as Medicine" strategy across multiple business lines to address food and nutrition insecurity among its members [73]. - The company focuses on care coordination based on nationally recognized criteria to improve inpatient and outpatient care, aiming to reduce preventable hospital admissions [75]. - The company has developed partnerships with network physicians and hospitals to enhance healthcare quality and social impact services, recognized by NCQA accreditation [76]. - The company utilizes HEDIS measures to improve care for chronic diseases and reduce healthcare disparities, including diabetes and heart disease management [77]. Market Position and Competition - The managed care industry is highly competitive, with intense competition driven by aggressive marketing, pricing, and new strategic alliances [43]. - The company leverages its BCBS brand for greater recognition and competitive positioning, being the largest participant in its branded markets [45]. - Pricing strategies are based on predictive modeling and proprietary research, aiming for growth through market expansions and regulatory changes [46]. - CarelonRx pricing is competitive, utilizing discounts off average wholesale prices and rebate projections to maintain market competitiveness [54]. Regulatory Environment - The Consolidated Appropriations Act of 2023 allows states to begin removing ineligible beneficiaries from Medicaid programs, impacting enrollment dynamics [86]. - The Inflation Reduction Act of 2022 includes provisions that may increase Public Exchange coverage premiums after enhanced PTCs expire on December 31, 2025 [88]. - The ACA has introduced new risks and regulatory challenges, significantly impacting the company's business model and product administration [96]. - The company anticipates ongoing regulatory guidance from CMS regarding Medicare ratings and quality bonus payments, which could affect financial recoveries [97]. - The company is required to comply with various BCBSA license agreements, including maintaining at least 80% of annual combined local net revenue under the BCBS names and marks [80]. Financial Performance - Net cash provided by operating activities decreased to $4,290 million in 2025 from $5,808 million in 2024, a decline of $1,518 million [371]. - Total sources of cash fell to $6,458 million in 2025, down from $12,815 million in 2024, a decrease of $6,357 million [371]. - Issuances of short- and long-term debt decreased significantly to $629 million in 2025 from $6,200 million in 2024, a drop of $5,571 million [371]. - The company repurchased and retired $2,605 million of common stock in 2025, compared to $2,900 million in 2024, a reduction of $295 million [371]. - Cash dividends paid increased slightly to $1,529 million in 2025 from $1,508 million in 2024 [371]. - The net increase in cash and cash equivalents was $1,203 million in 2025, compared to an increase of $1,828 million in 2024 [371]. - The company reported a total of $69 million from sales, maturities, calls, and redemptions of investments in 2025, down from $586 million in 2024 [371]. - The company had no purchases of investments in 2025, while it had $2,700 million in 2024 [371]. - Other sources of cash, net, amounted to $1,391 million in 2025, with no contributions in 2024 [371]. - The effect of foreign exchange rates on cash and cash equivalents was a decrease of $5 million in 2025 [371]. - As of December 31, 2025, consolidated cash, cash equivalents, and investments totaled $37,236 million, an increase of $1,520 million from December 31, 2024 [374]. - The debt-to-capital ratio was 42.1% as of December 31, 2025, down from 43.0% in 2024, indicating improved leverage [378]. - The company expects to receive approximately $2,100 million in dividends from subsidiaries during 2026, compared to $2,543 million received in 2025 [386]. - Future debt and estimated interest payments total $54,160 million, with $2,490 million due within the next twelve months [395]. - The company has a remaining Board authorization of $6,695 million for common stock repurchases as of December 31, 2025 [392]. - The 5-Year Facility was amended to increase available credit from $4,000 million to $5,000 million and extend the maturity date to September 2030 [381]. - Cash disbursements are primarily driven by claims payments, administrative expenses, and capital expenditures, with adequate liquidity expected from cash on hand and credit facilities [388]. - The company maintains a commercial paper program of up to $5,000 million, with no amounts outstanding as of December 31, 2025 [384]. - Future estimated payments for operating leases are $743 million, with $159 million due within the next twelve months [395]. - The company is in compliance with all debt covenants under the 5-Year Facility as of December 31, 2025 [382]. Employee and Culture - The company invested an average of approximately 26 hours of training and development per associate in 2025 [125]. - The company’s employee population consisted of approximately 97,100 individuals as of December 31, 2025, with 99% employed full-time [118]. - The company completed a gender and race pay equity review in 2025, finding female associates earn more than 99 cents for every dollar earned by similarly situated male associates [124]. - The company’s culture and engagement initiatives include over 20% of the U.S. workforce participating in Business Resource Groups in 2025 [122]. Transparency and Compliance - The Health Plan Transparency Rule requires the company to disclose detailed pricing information on a monthly basis, starting from July 2022 [114].

The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades: DA Davidson upgraded Q2 Holdings (QTWO) to Buy from Neutral with an unchanged $82 price target. The firm is "not making a call" on the upcoming Q4 results per se, but it believes that the pullback in the shares over the last 6-8 months has created a more attractive entry point.Citi upgraded JetBlue (JBLU) to Neutr ...

Investors in Elevance Health, Inc. (ELV) need to pay close attention to the stock based on moves in the options market lately. That is because the Mar 20, 2026 $460 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

Elevance Health Inc. (NYSE:ELV) is one of the most undervalued large cap stocks to invest in now.. On January 30, Barclays lowered the firm’s price target on Elevance Health to $393 from $404 and kept an Overweight rating on the shares. On January 29, Guggenheim analyst Jason Cassorla also lowered the firm’s price target on Elevance Health to $396 from $414 and maintained a Buy rating on recalibrated 2026 estimates following the company’s Q4 2025 report. However, on the same day, Deutsche Bank raised the ...

Core Insights - Elevance Health Inc (NYSE:ELV) experienced its largest single-day percentage gain since May 2024, reporting profits of $547 million, although this was not sufficient to recover from its worst day since March 2020 due to proposed Medicare Advantage payment rate increases of only 0.09% for 2027 [1] - The stock is currently near a trendline with historically bullish implications, which may assist in reducing its 14.2% year-over-year deficit [1] Technical Analysis - According to Schaeffer's Senior Quantitative Analyst, ELV is within 0.75 of its 100-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time over the last two weeks and 80% of the past 42 trading sessions. This pattern has historically led to an average gain of 5.7% one month later [3] - A similar upward movement from the current position could push ELV back above $363 [3] Market Sentiment - The health insurance stock's 50-day put/call volume ratio at major exchanges is higher than 99% of annual readings, indicating that an unwinding of pessimism could provide positive momentum for the shares [4] - Options for ELV are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 33% ranking in the 27th percentile of annual readings, suggesting that the stock has exceeded option traders' volatility expectations over the past year [5]

Key Takeaways Elevance Health posted Q4 adjusted EPS of $3.33, beating consensus by 7.3% despite revenues missing estimates.ELV's premiums rose 12.3% year over year, driven by higher yields and Medicare Advantage membership growth.Carelon revenues jumped 27% on buyouts and risk-based services, while overall medical membership declined.Elevance Health, Inc. (ELV) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $3.33, which surpassed the Zacks Consensus Estimate by 7.3%. The bottom line rose ...

Elevance Health Earnings Add to Medicare Pain. Why The Stock Is Rising Anyway. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Elevance Health Earnings Add to Medicare Pain. Why The Stock Is Rising Anyway.By [Mackenzie Tatananni]and [Alex K ...

The author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his personal capacity.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and ...

By Sriparna Roy and Sneha S K Jan 28 (Reuters) - Elevance Health said on Wednesday it expects revenue to fall slightly in 2026 and forecast full-year profit below Wall Street estimates, signaling that elevated medical costs will continue to weigh on insurers. The dour outlook ​sent shares of the health insurer down more than 7% before the bell. “We view 2026 as a year of execution and repositioning ‌across Medicaid, Medicare Advantage and (Obamacare plans),” said CEO Gail Boudreaux, adding the forecas ...

Second, even in a dynamic environment, we are acting decisively in the areas within our control to strengthen margins, reduce volatility, and improve the consistency of our performance. And third, as those actions take hold, we expect to return to at least 12% adjusted EPS growth in 2027 off our ending 2026 earnings baseline supported by the earnings power of our diversified platform. Consistent with that approach, we are establishing 2026 adjusted diluted earnings per share guidance of at least $25.50. As ...