Elevance Health Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.84%.
Did ELV Beat Earnings? Q1 2026 Results
Elevance Health delivered a strong first-quarter beat for Q1 2026, with adjusted diluted EPS of $12.58 clearing the $10.77 consensus estimate by 16.78%, while revenue of $50.18 billion grew 2.6% year over year and topped expectations by 4.23%. The quarter's outperformance was shaped in part by a surge in net investment income, up 29.7% to $765 million, including roughly $1.00 per share of non-recurring gains that management flagged as a tailwind. Those results came despite a $935 million accrual tied to a CMS notice concerning historical Medicare Advantage risk adjustment data, a liability that has kept analysts focused on <a href="https://247wallst.com/investing/2026/04/08/elevance-health-reinstated-at-inline-by-evercore-isi-is-the-medicare-advantage-bounce-already-priced-in/">the Medicare Advantage outlook</a> for the company. Operating cash flow was a standout at $4.33 billion, up $3.31 billion year over year, and the company returned $1.50 billion to shareholders through buybacks and dividends. Looking ahead, Elevance raised its full-year adjusted diluted EPS guidance to at least $26.75, while reaffirming operating cash flow guidance of at least $5.50 billion.
- Higher premium yields in Health Benefits segment
- Growth in CarelonRx product revenue
- Scaling of Carelon Services risk-based solutions
- Disciplined expense management driving 20 basis point improvement in adjusted operating expense ratio
- Favorable working capital dynamics driving $4.3 billion operating cash flow
- Non-recurring investment income contributing approximately $1 per share
- Improved profitability in specialty pharmacy and behavioral health businesses
“Our first quarter results exceeded expectations, reflecting underlying business strength and improving claims experience. We are raising our full-year adjusted EPS guidance, supported by greater visibility into the balance of the year. Our actions are driving more consistent performance and position Elevance Health for continued improvement over time.”
Elevance Health CEO, on the earnings call
Forward Guidance & Outlook
Elevance Health raised its FY 2026 adjusted diluted EPS guidance to at least $26.75, supported by underlying business strength, actions to reduce medical costs, and increased visibility. GAAP diluted EPS guidance was set at least $19.85, which includes the company's estimate of financial impact from the CMS matter. The company reaffirmed FY 2026 operating cash flow of at least $5.5 billion, inclusive of potential cash payments for the CMS matter. Full-year non-GAAP adjustments are expected to total approximately $6.90 per share, including the $4.24 CMS accrual, $2.00 for amortization of intangibles, $1.15 for net losses on financial instruments, $0.90 for transaction and integration costs, $0.59 for business optimization charges, offset by approximately $2.08 in tax benefits.
ELV YoY Financials
ELV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.