Elevance Health Inc

Elevance Health opened 2025 on a firm footing, reporting first-quarter adjusted diluted EPS of $11.97, a 4.30% beat against the $11.48 consensus, while revenue of $48.89 billion exceeded estimates by 5.72% and climbed 14.8% year over year. The standout driver was the Carelon segment, where revenue surged 38% to $16.70 billion as recent acquisitions in home health and the continued scaling of CarelonRx propelled the company's services businesses well ahead of expectations. In the Health Benefits segment, higher Medicaid medical cost trends weighed on margins, pushing the benefit expense ratio up 80 basis points to 86.4%, yet Elevance notably avoided the severity of Medicare Advantage cost pressures that rattled a major peer during the same period. The adjusted operating expense ratio improved 60 basis points to 10.7%, underscoring disciplined cost management even as the company absorbed acquisition-related complexity. Management reaffirmed its full-year 2025 adjusted diluted EPS guidance of $34.15 to $34.85, signaling confidence in the trajectory despite ongoing Medicaid headwinds.