Elevance Health Raises 2026 Guidance After Q3 Profit Beats Prior Year

Elevance Health (ELV) raised its full-year 2026 earnings and cash flow outlook after third-quarter results exceeded expectations, driven by improved operating performance across its healthcare and services businesses. Operating revenue rose 0.7% to $50.4 billion from $50.1 billion a year earlier. Net income attributable to shareholders climbed to $1.37 billion, or $6.27 per diluted share, from $1.19 billion, or $5.32 per diluted share. Adjusted diluted EPS rose to $6.99 from $6.03, and the benefit expense ratio improved to 90.6% from 91.3%. The Carelon segment remained the growth driver, with revenue up 5% to $19.3 billion and operating gain up 17% to $0.9 billion. Health Benefits revenue rose 3% to $43.4 billion, though operating gain fell to $436 million from $601 million. Medicare membership declined 487,000 year over year. The company now expects 2026 diluted EPS of at least $22.00 and adjusted diluted EPS of at least $29.00. It repurchased 0.8 million shares for about $330 million and declared a fourth-quarter dividend of $1.72 per share. ELV closed Tuesday at $440.18, up 2.31%.