Elevance Health(US:ELV)2025-10-21 10:01Financial Performance - Operating revenue for Q3 2025 was $50.1 billion, an increase of 12.0% from Q3 2024[5] - Diluted EPS for Q3 2025 was $5.32, with adjusted diluted EPS at $6.03[5] - Total revenues for the three months ended September 30, 2025, increased by 12.4% to $50,711 million compared to $45,106 million in 2024[38] - Health Benefits operating revenue for the three months ended September 30, 2025, rose by 10.4% to $42,246 million from $38,278 million in 2024[46] - Carelon's operating revenue reached $18.3 billion in Q3 2025, a 33% increase compared to the prior year quarter[23] - Carelon Services segment reported a significant increase in operating revenue of 57.9%, reaching $7,324 million for the three months ended September 30, 2025[46] - Net income for the three months ended September 30, 2025, was $1,187 million, reflecting a 17.8% increase from $1,008 million in 2024[38] - Operating revenue for the nine months ended September 30, 2025, increased by 13.9% to $148,273 million, compared to $130,215 million in 2024[59] Expense and Margin Analysis - The benefit expense ratio increased to 91.3%, up 180 basis points year-over-year, primarily due to cost trends in the Medicare business[9] - The operating margin for the Health Benefits segment was 1.4%, down from 4.2% in the prior year[14] - Operating expenses as a percentage of total operating revenue decreased to 10.5% for the three months ended September 30, 2025, compared to 11.8% in 2024[38] - The company’s benefit expense as a percentage of premiums increased to 91.3% for the three months ended September 30, 2025, compared to 89.5% in 2024[38] - Adjusted operating expense ratio for the three months ended September 30, 2025, was 10.4%, an increase of 100 basis points compared to 9.4% in 2024[59] Shareholder Returns - The company returned $3.3 billion of capital to shareholders year-to-date[5] - Shareholders' earnings per diluted share increased by 22.0% to $5.32 for the three months ended September 30, 2025, from $4.36 in 2024[38] - Shareholders' net income for the three months ended September 30, 2025, was $1,189 million, representing a 17.0% increase compared to $1,016 million in 2024[56] - The company expects shareholders' earnings per diluted share for the full year 2025 to be approximately $24.70[59] Cash Flow and Assets - Operating cash flow was $4.2 billion year-to-date, a decrease of $0.9 billion year-over-year[11] - Cash and cash equivalents at the end of the period increased to $8,713 million from $7,866 million in 2024[42] - Total assets as of September 30, 2025, were $122,749 million, up from $116,889 million at the end of 2024[40] Risks and Uncertainties - The company emphasizes that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections[63] - Key risks include trends in healthcare costs, reduced enrollment, and the impact of large-scale medical emergencies[63] - There are concerns regarding compliance with complex regulations related to Medicare and Medicaid programs, which could affect revenue[63] - The company faces competitive pressures and must adapt to changes in the industry to develop strategic growth opportunities[63] - Risks associated with mergers, acquisitions, and joint ventures are acknowledged, which could impact future performance[63] - The potential negative effects of substantial outstanding indebtedness and increased interest rates on financing costs are noted[63] - There are risks related to international operations and the ability to attract and retain employees in a competitive market[63] - The company warns of possible restrictions on dividend payments from subsidiaries and the need for adequate capital levels[63]