Core Insights - The company aims for at least 12% adjusted EPS growth by 2027, with a 2026 adjusted diluted EPS guidance of at least $25.50, reflecting prudent assumptions and strategic repositioning [1][22][24] - The focus for 2026 is on execution and repositioning, with an emphasis on improving care coordination and managing costs effectively [2][9] Financial Performance - Adjusted diluted EPS for Q4 was $3.33, with a full-year EPS of $30.29, benefiting from favorable tax items and solid underlying performance [16][18] - Operating revenue for Q4 reached $49.3 billion, a 10% increase year-over-year, driven by premium rate adjustments and acquisitions [18] - The consolidated benefit expense ratio was 93.5% for Q4 and 90% for the full year, aligning with guidance [18] Membership and Market Dynamics - The company ended the year with 45.2 million members, a decrease of approximately 500,000, primarily due to Medicaid membership declines [17] - Medicaid operating margin is expected to be approximately -1.75% in 2026, with improvements anticipated as rates adjust to current experiences [5][20] - Medicare Advantage membership is projected to decline in the high teens percentage range in 2026, reflecting deliberate portfolio actions [6][20] Strategic Initiatives - The company is enhancing analytics to identify high-cost treatment patterns and improve care coordination, particularly in Medicaid [11][10] - Investments are being made in specialty pharmacy management and behavioral health support to strengthen care management programs [12][11] - The company is focused on maintaining operational discipline while investing in technology and simplifying the member experience [23][25] Long-term Outlook - The long-term enterprise margin target is set at 5% to 6%, with health benefits targeting mid-single-digit margins [9][24] - The company is recalibrating long-term margin expectations to reflect the current business mix and operating environment [25][54] - Confidence in achieving at least 12% adjusted EPS growth in 2027 is based on multiple independent levers and disciplined execution across various segments [24][49]