Financial Data and Key Metrics Changes - Elevance Health reported adjusted diluted earnings per share of $3.33 for Q4 2025 and $30.29 for the full year, with fourth quarter results benefiting from greater tax favorability than anticipated [15] - Operating revenue for Q4 totaled $49.3 billion, an increase of 10% from the prior year, driven by premium rate adjustments and acquisitions [16] - The consolidated benefit expense ratio was 93.5% for Q4 and 90% for the full year, in line with guidance [16] Business Line Data and Key Metrics Changes - Medicaid operating margin is expected to be approximately -1.75% for 2026, with improvement anticipated over time as rates incorporate more current experience [6] - Medicare Advantage membership is expected to decline in the high teens percentage range in 2026, reflecting deliberate portfolio actions [7] - The commercial business showed healthy momentum, particularly in national accounts, supported by a productive selling season and favorable client retention [8] Market Data and Key Metrics Changes - The company ended the year with 45.2 million members, a decrease of approximately 500,000 year-over-year, primarily due to a decline in Medicaid membership [16] - The individual ACA market is expected to see membership at least 900,000 by year-end 2026, reflecting the expiration of enhanced premium tax credits [70] Company Strategy and Development Direction - The company views 2026 as a year of execution and repositioning, with a focus on improving margins and reducing volatility [4] - The long-term earnings growth algorithm is reaffirmed at least 12% adjusted EPS growth annually on average over time, with expectations to return to this level in 2027 [22] - The company is recalibrating long-term margin targets to reflect the current portfolio and expected future evolution [23] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of affordability in healthcare and the need for prudent planning assumptions in a dynamic environment [4] - The company is confident in its long-term algorithm and expects to return to at least 12% adjusted EPS growth in 2027, supported by diversified earnings power [13] - Management acknowledged the challenges posed by the current operating environment but remains focused on disciplined execution and targeted investments [10] Other Important Information - The company plans to allocate approximately $2.3 billion towards share repurchases in 2026, reflecting a balanced approach to capital allocation [22] - Operating cash flow was $4.3 billion for the year, with expectations for at least $5.5 billion in 2026 [19] Q&A Session Summary Question: Cost trend across major lines of business - Management indicated that cost trends in commercial, Medicaid, and Medicare are expected to remain elevated but stable, with some variations by line of business [25][27] Question: Membership declines during AEP - Management explained that membership declines were larger than expected, particularly in Medicare, due to deliberate repositioning towards margin stability [31][34] Question: Medicaid margin drivers - Management noted that Medicaid margins were slightly better than expected in Q4 due to favorable prior period development and modest retroactive rates [40] Question: Rate outlook for Medicaid - Management anticipates a composite rate increase in the mid-single-digit percentage range for 2026, but rates will still lag trend due to ongoing membership attrition [46] Question: Long-term EPS growth confidence - Management expressed confidence in achieving at least 12% adjusted EPS growth starting in 2027, driven by disciplined execution and multiple independent levers [52][55] Question: Capital deployment priorities - Management stated that near-term capital allocation will reflect a conservative posture, focusing on integration and execution rather than new M&A activity [75]

3 Strategic Focus Areas Elevance Health 4Q 2025 Earnings Presentation January 28, 2026 Key Highlights 1 2025 Results Elevance Health fourth quarter operational results consistent with expectations 2 2026 Guidance & 2027 Outlook 2026 adjusted diluted EPS1 guidance of at least $25.50 2027 adjusted diluted EPS1 to grow at least 12%, off our ending 2026 earnings baseline Fourth Quarter & Full Year 2025 Results | Elevance Health | 4Q 2025 | 4Q 2024 | Change | 2025 | 2024 | Change | | --- | --- | --- | --- | --- ...

分组1 - Elevance Health reported quarterly earnings of $3.33 per share, exceeding the Zacks Consensus Estimate of $3.1 per share, but down from $3.84 per share a year ago, representing an earnings surprise of +7.30% [1] - The company posted revenues of $49.31 billion for the quarter ended December 2025, which was 0.45% below the Zacks Consensus Estimate, compared to $44.99 billion in the same quarter last year [2] - Elevance Health has surpassed consensus EPS estimates three times over the last four quarters, while also topping consensus revenue estimates three times in the same period [2] 分组2 - The stock has underperformed the market, losing about 7.9% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $10.37 on revenues of $50.52 billion, and for the current fiscal year, it is $27.01 on revenues of $205.02 billion [7] - The Zacks Industry Rank indicates that the Medical Services sector is currently in the bottom 26% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Elevance Health stock was set to fall for second consecutive day Wednesday. ...

Five things to know ahead of today's opening bell. The Fed will announce its latest interest rate decision. That's coming at 2 PM Eastern time.Investors expecting no change in the federal funds rate, but we will be paying close attention to Fed Chair J Pal's news conference for any clues about the future of rate paths. Elephants Health, formerly known as Anthem, out with its fourth quarter results. Those earnings beat expectations.revenue was a little bit light. Eleance shares though were down 14% yesterday ...

Core Insights - Elevance Health reported a fourth quarter net income of $547 million, reflecting ongoing challenges with healthcare costs impacting earnings [2][3] - The company is the second-largest health insurer in the U.S., operating under the Anthem brand and managing Medicaid contracts [4] Financial Performance - Net income increased by 31% to $547 million, or $2.47 per share, compared to $418 million, or $1.81 per share, in the previous year [8] - Total revenues rose by 9.5% to $49.7 billion, with operating revenue up 10% to $49.3 billion, driven by higher premium yields and growth in Medicare Advantage membership [9][8] Cost and Expense Ratios - The benefit expense ratio increased to 93.5% in the fourth quarter, up from 91.3% in the third quarter, indicating rising medical costs [6][8] - For the full year, the benefit expense ratio was 90.0%, an increase of 150 basis points year-over-year, attributed to elevated medical cost trends [7] Membership and Market Position - Elevance ended 2025 with 45.2 million health plan members, a 1% decrease from the previous year, primarily due to attrition in the Medicaid segment [9] - The company continues to expand its Carelon health services business, with operating revenue increasing by 27% to $18.7 billion [10] Strategic Focus - The CEO emphasized a commitment to improving affordability and access to healthcare, aiming for at least 12% adjusted earnings per share growth by 2027 through pricing discipline and targeted investments [10]

Core Viewpoint - Elevance Health has forecasted that its profit for 2026 will be below Wall Street expectations due to anticipated higher medical costs continuing into the year [1] Group 1: Financial Forecast - The company expects that elevated medical costs will persist, impacting profitability [1] - The profit forecast for 2026 is notably lower than what analysts had anticipated [1]

Financial Performance - 4Q 2025 operating revenue was $49.3 billion, a 10% increase from the prior year, while FY 2025 revenue reached $197.6 billion, up 13%[6] - 4Q 2025 diluted EPS was $2.47, with adjusted diluted EPS at $3.33; FY 2025 diluted EPS was $25.21, and adjusted diluted EPS was $30.29[6] - Projected FY 2026 GAAP diluted EPS is expected to be at least $22.30, with adjusted diluted EPS projected to be at least $25.50[6] - Total operating revenue rose by 9.6% to $49,311 million for Q4 2025, with a total of $197,584 million for the full year, reflecting a 12.8% increase[39] - Adjusted Operating Gain for 2025 was $7.5 billion, with a guidance of at least $6.8 billion for 2026[61] - GAAP Diluted EPS for 2025 was $25.21, with a forecast of at least $22.30 for 2026[61] Segment Performance - Operating revenue for the Health Benefits segment was $41.8 billion in 4Q 2025, an 11% increase year-over-year, and $167.1 billion for FY 2025, also an 11% increase[17] - Carelon's operating revenue was $18.7 billion in 4Q 2025, a 27% increase compared to the prior year, and $71.7 billion for FY 2025, a 33% increase[24] - Operating revenue for the CarelonRx segment increased by 16.7% to $11,644 million in Q4 2025, with a full-year revenue of $43,400 million, up 20.7%[45] - Total Health Benefits Operating Revenue for the twelve months ended December 31, 2025, was $167,094 million, reflecting an 11.2% increase from $150,275 million in 2024[49] Membership and Enrollment - Medical membership totaled approximately 45.2 million as of December 31, 2025, a decrease of 0.5 million, or 1%, year-over-year[18] - Total medical membership decreased by 1.1% year-over-year to 45,232,000 members as of December 31, 2025[37] - Medicare Advantage membership grew by 7.9% year-over-year to 2,230,000 members, while total Medicare membership increased by 5.2% to 3,112,000[37] - Year-End Medical Enrollment for 2025 was 45,232,000, projected to decrease to between 43,175,000 and 43,875,000 for 2026[63] - Commercial Fee-Based enrollment for 2025 was 27,092,000, expected to increase to between 27,200,000 and 27,500,000 for 2026[63] Expenses and Claims - The benefit expense ratio for 4Q 2025 was 93.5%, an increase of 110 basis points year-over-year, while the full year ratio was 90.0%, up 150 basis points[10] - The benefit expense as a percentage of premiums increased to 93.5% in Q4 2025, compared to 92.4% in Q4 2024[39] - The current year medical claims paid as a percentage of current year net incurred medical claims was 89.5% for 2025, up from 88.5% in 2024[51] - The net medical claims payable at the end of 2025 was $16,781 million, up from $15,567 million at the end of 2024[51] Shareholder Returns - The company returned $4.1 billion of capital to shareholders in 2025, including share repurchases and dividends[6] - The company declared a first quarter 2026 dividend of $1.72 per share, payable on March 25, 2026[27] - For the three months ended December 31, 2025, shareholders' net income increased by 30.9% to $547 million compared to $418 million in the same period of 2024[54] - Adjusted shareholders' earnings per diluted share for the three months ended December 31, 2025, increased by 3.1% to $3.33 compared to $3.23 in 2024[54] - Adjusted shareholders' net income for the twelve months ended December 31, 2025, decreased by 11.6% to $6,804 million from $7,694 million in 2024[54] Assets and Cash Flow - Cash and cash equivalents at the end of the period increased to $9,491 million from $8,288 million year-over-year[41] - Total assets grew to $121,494 million as of December 31, 2025, compared to $116,889 million in 2024[41] - Operating Cash Flow for 2025 was $4.3 billion, with a guidance of at least $5.5 billion for 2026[61] Future Outlook - Full Year 2025 Premium Revenue was $164.6 billion, with a projected mid single digit decline for 2026[61] - Total Operating Revenue for 2025 was $197.6 billion, expected to decline in the low single digits for 2026[61] - Benefit Expense Ratio for 2025 was 90.0%, expected to increase to 90.2% +/- 50 bps for 2026[61] - Adjusted Effective Tax Rate for 2025 was 17.6%, projected to rise to between 22.0% and 24.0% for 2026[61]

Core Insights - Elevance Health reported fourth quarter and full year 2025 results, showing disciplined execution in a dynamic environment and a focus on advancing affordability and healthcare accessibility for members [2][4]. Financial Performance - Operating revenue for Q4 2025 was $49.3 billion, a 10% increase from Q4 2024, while total operating revenue for 2025 reached $197.6 billion, up 13% year-over-year [4][11]. - The operating gain for Q4 2025 was $0.3 billion, with an adjusted operating gain of $0.4 billion, reflecting a decrease compared to the previous year [4][12]. - The benefit expense ratio increased to 93.5% in Q4 2025, up 110 basis points from the prior year, driven by higher medical costs [5][25]. Segment Performance - The Health Benefits segment generated $41.8 billion in operating revenue for Q4 2025, an 11% increase compared to Q4 2024, with a full year revenue of $167.1 billion, also up 11% [10][11]. - Carelon segment reported operating revenue of $18.7 billion in Q4 2025, a significant increase of 27% year-over-year, driven by growth in CarelonRx and Carelon Services [15][29]. Membership Metrics - Medical membership totaled approximately 45.2 million as of December 31, 2025, a decrease of 0.5 million or 1% year-over-year, primarily due to attrition in the Medicaid business [13][22]. Cash Flow and Shareholder Returns - Operating cash flow for 2025 was $4.3 billion, approximately 0.8 times GAAP net income, with cash and investments at the parent company totaling $2.6 billion as of December 31, 2025 [8][26]. - The company repurchased 1.4 million shares for $471 million in Q4 2025 and declared a quarterly dividend of $1.71 per share, totaling $377 million in cash distribution [9][17].

Group 1 - Major healthcare stocks, including UnitedHealth, experienced significant declines, with UnitedHealth dropping 19% and hitting a new low since August 2022 [1] - UnitedHealth announced that its revenue is expected to decline for the first time in at least 30 years, projecting a 2% decrease to $439 billion for the year [3] - The proposed changes to Medicare Advantage payment rates for 2027 shocked insurance companies, with expected growth reduced to an average of 0.09%, compared to previous analyst expectations of 4% to 6% [3] Group 2 - The political environment for insurance companies is becoming increasingly challenging, with inflation remaining high and Medicare rate adjustments lagging behind inflation trends [4] - UnitedHealth is under criminal investigation by the U.S. Department of Justice regarding its Medicare billing practices [4]