Here’s What Affected Elevance (ELV) in Q2

Core Insights - Artisan Partners' Artisan Select Equity Fund reported returns of 6.77%, 6.76%, and 6.80% for its Investor Class, Advisor Class, and Institutional Class respectively in Q2 2025, underperforming the S&P 500 Index which returned 10.94% [1] Company Analysis: Elevance Health, Inc. - Elevance Health, Inc. has experienced significant stock price pressure, with a one-month return of -0.01% and a 52-week decline of 38.73%, closing at $318.61 per share with a market capitalization of $71.744 billion as of September 29, 2025 [2] - The decline in Elevance's Medicaid business is attributed to a drop in its contribution to normalized profits from approximately 15% to 5% over the past year, largely due to enrollment volatility caused by the COVID-19 pandemic [3] - The Medicaid program saw a 32% increase in membership during the pandemic, peaking at 95 million enrollees, followed by a 17% decline as reverification resumed, leading to a shift in the health profile of remaining enrollees and squeezing Medicaid margins [3] - State-level premium rates for Medicaid are currently being renegotiated higher, which is expected to normalize margins for Elevance Health as the company moves through 2025 and 2026 [3]