Elevance Health (NYSE:ELV) Q4 2025 Earnings call January 28, 2026 08:30 AM ET Speaker18Ladies and gentlemen, thank you for standing by, and welcome to the Elevance Health Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, where participants are encouraged to present a single question. If you wish to ask a question, please press star then one on your telephone keypad. You will hear a prompt that you have bee ...

Core Viewpoint - Humana's stock experienced a significant decline of 21% following the CMS's announcement of a minimal rate increase for 2027, highlighting the company's vulnerability as a "pure play" on Medicare Advantage, which constitutes approximately 85% of its operations [2] Financial Performance - Humana's Q3 2025 revenue was reported at $32.65 billion, reflecting an 11% year-over-year increase, while adjusted EPS for the same period was $3.24, down 22% year-over-year [2] - The medical benefit ratio for Q3 2025 stood at 91.1%, indicating limited profitability potential, as ratios above 90% are generally unfavorable [3] - The company anticipates a full-year 2025 adjusted EPS of around $17.00, with a projected benefit ratio between 90.1% and 90.5% [3] Membership Trends - Humana is facing a decline in Medicare Advantage membership, with an expected loss of approximately 425,000 members in 2025 due to withdrawal from unprofitable markets [3] Star Ratings Impact - Humana's Star Ratings, which influence bonus payments from CMS, have significantly dropped for the bonus year 2027, leading to reduced reimbursements and a competitive disadvantage compared to peers like UnitedHealth [5] Valuation Insights - Following the recent stock decline, Humana is trading at around $209 per share, approximately 13 times the estimated 2026 EPS, which appears slightly undervalued compared to historical multiples of 16-18 times [6] - The company is focusing on operational efficiencies and aims to achieve over $100 million in savings through AI and outsourcing [6] Future Projections - Analysts project a loss of $4.00 per share for Q4 2025, contrasting with a loss of $2.16 in Q4 2024, reflecting the challenges in addressing the Star Ratings issue [7] - The company is implementing a "reset" strategy for 2025-2026, but its effectiveness remains unproven amid regulatory challenges [8] Investment Outlook - The investment view suggests that Humana presents a high-risk profile until Q4 results and final 2027 rates are disclosed, with a 35% analyst upside projection considered optimistic given existing structural hurdles [9]

Core Viewpoint - CVS experienced a significant stock drop of 14% following a disappointing 0.09% rate increase announcement for 2027 by CMS, which fell short of investor expectations of 4-6% [2][3] Financial Performance - CVS's revenue for 2025 is projected to exceed $400 billion, with adjusted operating income estimated between $14.22 billion and $14.39 billion [12] - The company reported an adjusted EPS of $1.60 for Q3 2025, surpassing estimates of $1.36 [11] - Aetna's medical loss ratio improved to 87.3% from 90.4% in Q3 2024, indicating stabilization in their insurance business [11][6] Business Segments - Approximately 33% of CVS's revenue comes from premiums, making it less vulnerable to Medicare Advantage challenges compared to competitors like Humana [3] - CVS operates a diversified business model, including retail pharmacies (9,000 locations), Pharmacy Benefit Management (CVS Caremark with 87 million members), and Aetna [2] Strategic Challenges - CVS recorded a $5.7 billion goodwill impairment charge in Q3 2025 related to its acquisition of Oak Street Health, indicating difficulties in executing its healthcare delivery strategy [6][9] - The company is terminating 16 Oak Street clinics and adjusting its growth strategy due to the underperformance of this acquisition [9] Market Outlook - CVS's guidance indicates expectations for margin improvement despite stable revenue, suggesting operational efficiency gains alongside Aetna's stabilization [7] - The 2027 Medicare rate proposal is expected to pressure Aetna's margins, raising concerns about the impact on CVS's overall performance [8] Valuation Metrics - CVS's current stock price is $72, with a forward P/E ratio of 10.2x, which is considered inexpensive compared to its historical trading range of 12-15x [13][14] - The company is projected to generate robust operating cash flow of $7.5 billion to $8.0 billion in 2025, with a quarterly dividend of $0.665 per share, yielding 3.3% [15] Investment Perspective - CVS offers a higher level of diversification compared to competitors like UnitedHealth and Humana, making it a more balanced investment option despite the complexities involved [16][17] - The stock's current valuation reflects ongoing challenges but does not indicate a catastrophic outlook, making it an attractive option for investors seeking exposure to the healthcare sector with less regulatory risk [17]

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!My first-ever article on UnitedHealth ( UNH ) came out in mid-May 2025 , right after the stock's heavy drop on pulling its guidance and replacing the previousDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse a ...

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 | | --- | --- | --- | --- | --- ...

Expects UHC, Medicare Advantage contraction will be in the range of 1.3 million to 1.4 million members for the full year, including Group, individual and dual special needs plans, greater losses than anticipated. Says competitive market dynamics drove higher than expected. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today’s best-performing stocks on TipRanks >> Read More on UNH: Disclaimer & DisclosureReport an Issue ...

Looking to 2027, says the advance notice published yesterday “simply doesn’t reflect the reality of medical utilization and cost trends.” UnitedHealth (UNH) says it will continue to work with CMS to “ensure an appropriate final growth rate calculation to avoid a profoundly negative impact on seniors benefits and access to care that would be a deeply unfortunate result for a program that already is underfunding pressure from the previous administration.” Published first on TheFly – the ultimate source for ...

分组1 - UnitedHealth's Q4 earnings release triggered a significant sell-off across the healthcare industry, impacting companies like Centene, which has notable exposure to governmental healthcare programs, albeit less than UnitedHealth [1] - The sell-off reflects broader market concerns regarding the performance and outlook of healthcare stocks following UnitedHealth's results [1] 分组2 - The article emphasizes the importance of fundamental analysis in making informed investment decisions, highlighting the author's experience in managing a family portfolio and understanding the balance between risk and reward [1] - The author aims to provide accessible insights for investors of all experience levels, leveraging a background in IT to navigate complexities in technology stocks while also exploring diverse sectors for investment opportunities [1]

After UnitedHealth's ( UNH ) yesterday Q4 earnings release, the entire industry suffered a big panic sell-off. Despite Centene's ( CNC ) exposure to governmental healthcare programs is not as significant as UNH's, it is still notable, andComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and ...

Quick Read Investors were treated to a bifurcated market on Tuesday, with the Nasdaq soaring and the Dow Jones Industrials plunging. Investors are anxiously awaiting the first major fourth-quarter tech results after the close today. Gold and Silver continued their epic march higher on Tuesday as investors kept buying the two precious metals. Investors rethink ‘hands off’ investing and decide to start making real money Pre-Market Stock Futures: The futures are trading higher after a seesaw day acr ...