Elevance Health Q3 Earnings Beat Estimates on Strong MA Membership

Core Insights - Elevance Health, Inc. (ELV) reported Q3 2025 adjusted EPS of $6.03, exceeding the Zacks Consensus Estimate by 21.1%, despite a 29.9% year-over-year decline [1][9] - Operating revenues increased by 12% year-over-year to $50.1 billion, surpassing the consensus mark by 1.2% [1][4] Financial Performance - Premiums reached $41.8 billion, a 13.5% increase year-over-year, exceeding both the consensus estimate of $41 billion and the internal estimate of $40.2 billion [4] - Product revenues grew 4.6% year-over-year to $6.2 billion, slightly missing the Zacks Consensus Estimate of $6.3 billion but beating the internal estimate of $6.1 billion [4] - Net investment income rose 13.4% year-over-year to $625 million, surpassing the consensus mark of $449 million and the internal estimate of $476.5 million [5] - Total expenses increased by 12.7% year-over-year to $49.3 billion, exceeding the internal estimate of $47.7 billion [5] Segment Performance - Health Benefits segment reported operating revenues of $42.2 billion, a 10% increase year-over-year, beating the consensus estimate of $41.5 billion [7] - Carelon segment's operating revenues surged 33% year-over-year to $18.3 billion, exceeding both the consensus estimate of $18 billion and the internal estimate of $17.4 billion [9] - Corporate & Other segment's operating revenues more than doubled year-over-year to $149 million, with an operating loss of $81 million, narrower than the previous year's loss of $999 million [11] Membership and Enrollment - Medical membership stood at approximately 45.4 million as of September 30, 2025, a 0.9% decline year-over-year, primarily due to a decrease in Medicaid membership [3] Cash Flow and Capital Deployment - Cash and cash equivalents were $8.7 billion, a 5.1% increase from the end of 2024 [12] - Elevance Health repurchased shares worth $875 million in Q3 2025, with a remaining capacity of approximately $7.2 billion under its buyback authorization [14] 2025 Outlook - The company maintains its adjusted EPS guidance at around $30, indicating a 9.2% decline from 2024 [15] - Medical enrollment is forecasted to be between 45.8 million and 46.6 million in 2025 [16]