Core Insights - Elevance Health, Inc. (ELV) is integrating Food as Medicine into its primary care model through a partnership with the National Association of Community Health Centers (NACHC) to enhance treatment plans with nutrition [1][9] - The initiative aims to address food and nutrition insecurities while improving chronic disease management and preventive health outcomes for approximately 34 million Americans served by Community Health Centers (CHCs) [3][9] - Elevance Health's individual medical membership increased by 5.2% year over year in Q2 2025, reaching 1.3 million, with expectations of a 0.7% rise in 2025 [4] Company Strategy - The collaboration will train primary care teams at CHCs to connect Medicaid patients with personalized nutrition support, including medically tailored meals and lifestyle interventions [2][9] - The goal is to establish a scalable Nutrition Center of Excellence that could serve as a national model for food-based clinical care [4][9] Competitor Analysis - Centene Corporation (CNC) reported a 6.2% year-over-year growth in high-acuity Medicaid membership, totaling around 28 million members as of June 30, 2025, with total revenues increasing by 22.4% [5] - Cigna Group (CI) experienced a 3.2% year-over-year growth in international health customers, with total medical customers around 18 million and total revenues rising by 11% [6] Financial Performance - Elevance Health's stock has declined by 16.1% year-to-date, contrasting with a 1% decline in the industry [7] - The company trades at a forward price-to-earnings ratio of 9.62, significantly lower than the industry average of 15.08, and currently holds a Value Score of A [10] - The Zacks Consensus Estimate for Elevance Health's 2025 earnings is $30.59 per share, indicating a 7.4% decline from the previous year [11]

Core Insights - Elevance Health, Inc. is facing challenges from rising medical costs, slower Medicaid recovery, and increased utilization, leading to a reduced outlook for 2025 [1][5] - The company reported a significant increase in benefits expenses and cost of products sold in the first half of the year [1] Financial Performance - Benefits expense surged nearly 18% to over $72 billion, while cost of products sold increased almost 19% to $10.3 billion [1] - The second-quarter benefit expense ratio reached 88.9%, up 260 basis points year over year, with a projected full-year ratio of about 90% compared to 88.5% in 2024 [2][9] Membership and Growth - Commercial individual memberships rose 9.7% in the first half of 2025, following a 25.6% increase in 2024, indicating strong growth in the commercial segment [3][9] - Carelon's revenue is expected to grow nearly 30% in 2025, driven by a 60% surge in Carelon Services [4][9] Competitive Landscape - Other companies in the health benefits space, such as UnitedHealth Group and Centene Corporation, are also experiencing pressure from rising medical costs [6] - UnitedHealth's medical care ratio deteriorated to 89.4%, while Centene's health benefits ratio reached 93%, indicating industry-wide challenges [7] Valuation and Estimates - Elevance's shares have declined 20.7% year-to-date, compared to a 3.9% decline in the industry [8] - The forward price-to-earnings ratio for Elevance is 9.19, significantly lower than the industry average of 14.57, with a Zacks Consensus Estimate for 2025 earnings at $30.59 per share, reflecting a 7.4% decline from the previous year [10][11]

Core Insights - Elevance Health, Inc. (ELV) has experienced a significant decline of 20.3% year to date, underperforming compared to industry peers and the S&P 500 Index [1][7] - The stock closed at $293.99, near the lower end of its 52-week range of $273.71–$567.26, potentially presenting an attractive entry point for value investors [1] - Elevance has a market capitalization of $66.2 billion, with peers like UnitedHealth Group and Centene also facing challenges this year [1] Membership and Revenue Challenges - Medicaid membership has decreased by 15.1% in 2024 and an additional 4.1% in the first half of 2025, impacting revenue [4] - Membership in Medicare Supplement and employer group risk-based segments is also declining, with expectations of continued volatility into 2026 due to recent policy changes [4][6] Rising Costs and Margin Pressure - Medical costs are increasing due to higher utilization, leading to a deterioration in the benefit expense ratio, which worsened by 260 basis points year over year to 88.9% in Q2 [5] - The full-year benefit expense ratio is projected to be around 90%, with expectations of further increases in the second half of the year [5] Analyst Sentiment and Earnings Outlook - Management has revised its full-year 2025 adjusted EPS outlook down to approximately $30, from a previous range of $34.15-$34.85, reflecting a decline from the 2024 figure of $33.04 [6] - Analysts have sharply cut 2025 and 2026 EPS estimates, with the current consensus estimate for 2025 EPS at $30.59, indicating a 7.4% decline from the prior year [9] Valuation Metrics - Elevance Health trades at a forward 12-month P/E of 9.24X, significantly below its five-year median of 13.44X and the industry average of 14.32X, indicating investor caution [10] - Despite a steeper sell-off, peers UnitedHealth and Centene command higher multiples of 14.05X and 9.94X, respectively [10] Long-Term Growth Potential - Elevance has solid long-term growth drivers, including product expansion, revenue diversification, and premium increases, which may help mitigate current pressures [11] - The company is reallocating resources to more profitable areas and has a return on invested capital of 9.36%, outperforming the industry average of 5.80% [12] Shareholder Value Initiatives - Elevance maintains consistent dividend payouts with a yield of 2.33%, higher than the industry average of 1.37% [13] - The company repurchased shares worth $379 million in Q2 2025, with approximately $8 billion remaining under its buyback authorization as of June 30, 2025 [13]

Core Viewpoint - UBS maintains a "Buy" rating on Elevance Health with a target price of $435, indicating a potential upside of nearly 53% from the current closing price of $283.48 [1] Financial Performance - Elevance Health reported Q2 revenue of $49.8 billion, exceeding market expectations [1] - Adjusted earnings per share (EPS) for the quarter were $8.84, in line with market expectations [1] Earnings Guidance - The company lowered its full-year EPS guidance by $4.50, which translates to a pre-tax profit reduction of $1.3 billion [1] - Elevance Health raised its 2025 medical loss ratio forecast by 90 basis points [1] Market Factors - The increase in medical loss ratio expectations is attributed to unfavorable cost trends in the Affordable Care Act (ACA) exchanges and Medicaid business [1] - Despite the challenges, UBS remains optimistic about the potential profitability and growth in the commercial insurance and Carelon business segments [1]

智通财经APP获悉，在医疗保健公司Elevance Health(ELV.US)公布第二季度财报后，瑞银重申了对该股 的"买入"评级，目标价为435美元。这一目标价较该股周四收盘价283.48美元有近53%的上涨空间。瑞银 看好Elevance Health的理由是其盈利稳定性与增长前景。财报显示，Elevance Health Q2营收为498亿美 元，好于市场预期;调整后每股收益为8.84美元，符合市场预期。不过，该公司将全年每股收益预期下 调了4.50美元，相当于税前利润减少13亿美元。该公司还将2025年的医疗赔付率预期上调了90个基点。 瑞银表示，Elevance Health上调医疗赔付率预期归因于《平价医疗法案》(ACA)交易和医疗补助业务中 成本趋势较预期更为不利。不过，瑞银补充称，尽管如此，考虑到商业保险与Carelon业务板块的潜在 盈利稳定性与增长空间，仍维持对该股的"买入"评级。 ...

Stock Recommendations - Zacks 评级第一，强烈推荐买入的股票 [1] - Zacks 评级第五，强烈推荐卖出的股票 [1] Investment Opportunities - Zacks 提供未来 30 天内有望跑赢市场的七只股票 [1] Resources - 访问 zachs.com/bull 获取更多信息 [1]

Group 1 - Elevance Health, Inc. (NYSE: ELV) is rated as a Buy despite the severe impact on the healthcare plan providers industry, indicating a contrarian investment stance [1] - The industry has experienced deterioration in market prices, public opinion, and financial results, particularly affecting Elevance [1] - The investment approaches mentioned include GARP (Growth at a Reasonable Price), Value, and Growth, with a focus on insider buying and buybacks, as well as technical analysis tools like Elliott Wave and EMA crossovers [1]

Core Viewpoint - Bank of America Global Research has lowered the target price for Elevance Health from $350 to $330 [1] Company Summary - The target price adjustment indicates a shift in market expectations regarding Elevance Health's future performance [1]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Elevance Health's unaudited Consolidated Financial Statements for the period ended June 30, 2025, covering Balance Sheets, Income, Cash Flows, and Equity with detailed notes Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $8,560 | $8,288 | | Total current assets | $63,324 | $58,942 | | Goodwill | $28,368 | $28,277 | | **Total assets** | **$121,938** | **$116,889** | | **Liabilities & Equity** | | | | Medical claims payable | $17,155 | $15,746 | | Long-term debt, less current portion | $28,178 | $29,218 | | **Total liabilities** | **$78,087** | **$75,463** | | **Total shareholders' equity** | **$43,722** | **$41,315** | Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenue | $49,421 | $43,223 | $98,186 | $85,496 | | Benefit expense | $36,706 | $30,572 | $72,018 | $61,118 | | Net income | $1,744 | $2,301 | $3,928 | $4,550 | | Diluted EPS | $7.72 | $9.85 | $17.33 | $19.44 | Consolidated Cash Flow Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,071 | $2,425 | | Net cash used in investing activities | ($584) | ($3,128) | | Net cash provided by (used in) financing activities | ($2,217) | $700 | | Change in cash and cash equivalents | $272 | ($8) | [Note 1. Organization](index=9&type=section&id=Note%201.%20Organization) Elevance Health, a major U.S. health insurer, serves approximately 45.6 million members across diverse markets and reports results through four distinct segments - As of June 30, 2025, the company serves approximately **45.6 million** medical members through its affiliated health plans[22](index=22&type=chunk) - The company's results are reported in four segments: **Health Benefits, CarelonRx, Carelon Services, and Corporate & Other**[23](index=23&type=chunk) [Note 3. Business Acquisitions and Divestitures](index=14&type=section&id=Note%203.%20Business%20Acquisitions%20and%20Divestitures) The company expanded its Health Benefits and Carelon Services segments through acquisitions and divested its life and disability businesses, recognizing a significant gain - Completed the acquisition of Centers Plan for Healthy Living LLC on December 31, 2024, to grow the Health Benefits segment, adding **$211 million** in finite-lived intangibles and **$285 million** in goodwill[53](index=53&type=chunk) - Completed the acquisition of CareBridge on December 10, 2024, to enhance Carelon Services' at-home care strategy, adding **$305 million** in finite-lived intangibles and **$1,814 million** in goodwill[54](index=54&type=chunk) - On April 1, 2024, the company sold its life and disability businesses, recognizing a gain of **$240 million**[55](index=55&type=chunk) [Note 9. Medical Claims Payable](index=26&type=section&id=Note%209.%20Medical%20Claims%20Payable) Medical claims payable increased to $17.2 billion by June 30, 2025, with $1.065 billion in favorable prior period development for the first six months of 2025 Medical Claims Payable Reconciliation (in millions) | Description | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net medical claims payable, beginning of period | $15,567 | $15,858 | | Total net incurred medical claims | $70,025 | $59,078 | | *Prior periods redundancies* | *($1,065)* | *($1,473)* | | Total net payments | $68,919 | $59,881 | | Gross medical claims payable, end of period | $16,871 | $15,067 | - Favorable development in the first six months of 2025 was **$1.065 billion**, resulting from late 2024 trend factors being more favorable than originally expected[100](index=100&type=chunk) [Note 10. Debt](index=27&type=section&id=Note%2010.%20Debt) Elevance Health's outstanding senior unsecured notes decreased to $29.8 billion, with a $1.25 billion repayment and a $4.0 billion undrawn revolving credit facility, maintaining a healthy debt-to-capital ratio - On January 15, 2025, the company repaid **$1,250 million** of its 2.375% unsecured notes at maturity[105](index=105&type=chunk) - The company has a **$4.0 billion** senior revolving credit facility maturing in April 2027, with no amounts outstanding as of June 30, 2025[106](index=106&type=chunk) - The debt-to-capital ratio under the 5-Year Facility was **40.8%** as of June 30, 2025, well below the 60% covenant limit[106](index=106&type=chunk) [Note 11. Commitments and Contingencies](index=28&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) The company is involved in significant litigation, including the Blue Cross Blue Shield Antitrust Litigation, with a $666 million estimated settlement for provider plaintiffs, and a False Claims Act lawsuit - The Subscriber Settlement Agreement in the Blue Cross Blue Shield Antitrust Litigation became effective in June 2024[114](index=114&type=chunk) - A proposed Provider Settlement Agreement received preliminary court approval, with a final hearing set for July 29, 2025; the company's estimated payment obligation is **$666 million**, which was recognized in September 2024[118](index=118&type=chunk) - The company is defending a lawsuit from the U.S. Department of Justice alleging violations of the False Claims Act related to Medicare Part C risk-adjustment data[120](index=120&type=chunk) [Note 12. Capital Stock](index=31&type=section&id=Note%2012.%20Capital%20Stock) During the first half of 2025, Elevance Health repurchased 3.2 million shares for $1.26 billion and paid $3.42 per share in cash dividends, with $8.04 billion remaining for future repurchases Share Repurchase Summary | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Shares repurchased (millions) | 3.2 | 2.0 | | Average price per share | $399.97 | $506.55 | | Aggregate cost (millions) | $1,259 | $1,029 | | Authorization remaining (millions) | $8,041 | $3,171 | Dividend Summary | Period | Cash Dividend per Share | Total Paid (millions) | | :--- | :--- | :--- | | Q1 2025 | $1.71 | $386 | | Q2 2025 | $1.71 | $385 | | **YTD 2025 Total** | **$3.42** | **$771** | [Note 15. Segment Information](index=35&type=section&id=Note%2015.%20Segment%20Information) In Q2 2025, Health Benefits operating gain decreased, while CarelonRx and Carelon Services saw increased operating gains, contributing to a total operating gain of $2.425 billion Segment Operating Gain (Loss) (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Health Benefits | $1,560 | $2,145 | $3,777 | $4,432 | | CarelonRx | $536 | $497 | $1,138 | $1,020 | | Carelon Services | $400 | $208 | $891 | $498 | | Corporate & Other | ($71) | ($85) | ($211) | ($169) | | **Total Operating Gain** | **$2,425** | **$2,765** | **$5,595** | **$5,781** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's Q2 and H1 2025 financial performance, covering business trends, acquisitions, consolidated and segment results, liquidity, and critical accounting policies [Business and Regulatory Trends](index=41&type=section&id=Business%20and%20Regulatory%20Trends) Elevated medical cost trends in Individual ACA and Medicaid, coupled with regulatory changes like the OBBBA of 2025 and ongoing Medicaid redeterminations, are impacting the business - Medical cost trends are elevated due to increased morbidity in the Individual ACA business and higher member acuity and utilization in Medicaid[158](index=158&type=chunk) - The budget reconciliation legislation of 2025, the One Big Beautiful Bill Act (OBBBA), is expected to impact Medicaid renewal/eligibility rules and other areas, with most provisions effective in 2027 and 2028[165](index=165&type=chunk) - Medicaid eligibility redeterminations, which began in April 2023, are ongoing, with states having until December 31, 2025 to complete the process[167](index=167&type=chunk) [Other Significant Items](index=43&type=section&id=Other%20Significant%20Items) The company's 2025 Medicare Advantage Star Ratings show a decline, expected to reduce 2026 operating revenue by $183 million, alongside recent acquisitions and joint venture investments - The 2025 Medicare Advantage Star Ratings show **38%** of members in plans rated 4.0 Stars or higher, down from **53%** in the 2024 ratings[174](index=174&type=chunk)[175](index=175&type=chunk) - The lower Star Ratings are expected to cause a reduction in 2026 operating revenue of approximately **$183 million**, which the company plans to mitigate through various strategies[175](index=175&type=chunk) [Membership and Other Metrics](index=45&type=section&id=Membership%20and%20Other%20Metrics) Total medical membership slightly decreased by 0.3% year-over-year to 45.6 million, driven by a decline in Medicaid membership largely offset by an increase in Medicare Advantage Medical Membership by Category (in thousands) | Category | June 30, 2025 | June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Commercial Fee-Based | 27,154 | 27,234 | (0.3)% | | Medicare Advantage | 2,255 | 2,031 | 11.0% | | Medicaid | 8,733 | 9,028 | (3.3)% | | **Total Medical Membership** | **45,621** | **45,776** | **(0.3)%** | [Consolidated Results of Operations](index=47&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 operating revenue grew 14.3% to $49.4 billion, but net income fell 24.2% due to a higher benefit expense ratio driven by increased medical cost trends - Q2 2025 operating revenue increased **14.3%** YoY, while net income decreased **24.2%** YoY[196](index=196&type=chunk)[198](index=198&type=chunk) - The benefit expense ratio for Q2 2025 increased to **88.9%** from 86.3% in Q2 2024, driven by higher medical cost trends in Medicaid and ACA plans[197](index=197&type=chunk)[200](index=200&type=chunk) - The operating expense ratio improved by **160 basis points** to **10.1%** in Q2 2025, reflecting operating leverage from revenue growth[197](index=197&type=chunk)[202](index=202&type=chunk) [Reportable Segments Results of Operations](index=49&type=section&id=Reportable%20Segments%20Results%20of%20Operations) In Q2 2025, Health Benefits operating gain declined significantly, while CarelonRx and Carelon Services experienced substantial growth in operating gain due to acquisitions and improved performance - Health Benefits operating gain decreased **27.3%** in Q2 2025, as Medicaid and ACA plan rates were inadequate to cover medical cost trends[214](index=214&type=chunk)[216](index=216&type=chunk) - CarelonRx operating gain increased **7.8%** in Q2 2025, driven by higher prescription volume and revenue from recent acquisitions[214](index=214&type=chunk)[217](index=217&type=chunk) - Carelon Services operating gain grew **92.3%** in Q2 2025, primarily due to the acquisition of CareBridge and improved performance in specialty and behavioral health services[214](index=214&type=chunk)[218](index=218&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operating activities increased to $3.1 billion for the first half of 2025, with the parent company holding $2.2 billion in cash and investments, and the debt-to-capital ratio improving to 40.8% - Net cash provided by operating activities for the first six months of 2025 was **$3,071 million**, an increase from **$2,425 million** in the same period of 2024[237](index=237&type=chunk) - As of June 30, 2025, the parent company held **$2,224 million** of cash, cash equivalents, and investments available for general corporate use[241](index=241&type=chunk) - The consolidated debt-to-capital ratio was **40.8%** as of June 30, 2025, compared to **43.0%** as of December 31, 2024[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=58&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) There have been no material changes to the company's market risks since the disclosures in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's market risks since December 31, 2024[257](index=257&type=chunk) [Controls and Procedures](index=58&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[258](index=258&type=chunk) - No material changes to internal control over financial reporting were identified during the second quarter of 2025[259](index=259&type=chunk) [PART II. OTHER INFORMATION](index=58&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=58&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 11 of the Consolidated Financial Statements for detailed information regarding the company's legal proceedings as of June 30, 2025 - Information regarding legal proceedings is incorporated by reference from Note 11, "Commitments and Contingencies," in Part I, Item 1 of this report[260](index=260&type=chunk) [Risk Factors](index=58&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K[261](index=261&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, the company repurchased 928,007 shares of common stock, with approximately $8.04 billion remaining available under the repurchase authorization Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 567,084 | $427.05 | | May 2025 | 112,510 | $390.43 | | June 2025 | 248,413 | $380.11 | | **Total** | **928,007** | **N/A** | - As of the end of June 2025, the remaining authorization under the share repurchase program was approximately **$8.04 billion**[262](index=262&type=chunk) [Defaults Upon Senior Securities](index=59&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon its senior securities during the period - None[263](index=263&type=chunk) [Mine Safety Disclosures](index=59&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section is not applicable to the company - None[264](index=264&type=chunk) [Other Information](index=59&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company disclosed that no directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - During the three months ended June 30, 2025, no directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement[265](index=265&type=chunk) [Exhibits](index=60&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data files - Exhibits filed include the Amended and Restated Articles of Incorporation, Bylaws, CEO/CFO certifications (Sections 302 and 906), and XBRL interactive data files[267](index=267&type=chunk)

Core Insights - Elevance Health, Inc. (ELV) reported Q2 2025 adjusted EPS of $8.84, missing estimates by 3.5% and declining 12.6% year over year [1][8] - Operating revenues reached $49.4 billion, up 14.3% year over year, exceeding consensus estimates by 2.6% [1][8] - The increase in revenues was driven by higher premiums and product revenues, although rising medical costs in ACA and Medicaid impacted margins [1][8] Financial Performance - Medical membership stood at approximately 45.6 million, a decrease of 0.3% year over year, attributed to Medicaid attrition [2] - Premiums increased by 16.5% year over year to $41.3 billion, surpassing the consensus estimate of $39.6 billion [3] - Product revenues were $6 billion, a 9.3% increase year over year, but fell short of estimates [3] - Total expenses rose 16.1% year over year to $47.5 billion, driven by higher benefit expenses and interest costs [4] - The adjusted operating margin decreased by 170 basis points to 5% [3] Segment Performance - Health Benefits segment revenues totaled $41.6 billion, an 11.9% increase year over year, exceeding estimates [4] - Operating gains in the Health Benefits segment declined 27.3% year over year to $1.6 billion [5] - Carelon segment revenues reached $18.1 billion, a 36.1% increase year over year, driven by acquisitions and product revenue growth [6] - Carelon's operating gain increased by 28.6% year over year to $936 million [7] Cash Flow and Capital Management - Cash and cash equivalents rose to $8.6 billion from $8.3 billion at the end of 2024 [10] - Total assets increased to $121.9 billion from $116.9 billion at the end of 2024 [10] - Long-term debt decreased to $28.2 billion from $29.2 billion [11] - The company generated net cash flow from operations of $3.1 billion in the first half of 2025, a 26.6% increase year over year [11] - Share buybacks amounted to $379 million in Q2, with $8 billion remaining under the buyback authorization [12] Outlook - Adjusted EPS guidance for 2025 was lowered to $30 from a previous range of $34.15 to $34.85 [13] - The company anticipates operating revenues to grow in the high-single- to low-double-digit range in 2025 [15] - Medical enrollment is expected to be between 45.8 and 46.7 million in 2025 [15]