Elevance Health Beats Q3 Estimates and Raises Full-Year Guidance After Strong Medical Cost Management

Elevance Health reported third-quarter 2026 results that topped Wall Street expectations on both the top and bottom lines, and raised its full-year earnings outlook on the strength of better medical cost management. Revenue rose 0.7% year over year to $50.44 billion, exceeding the analyst consensus of $49.21 billion. Adjusted earnings per share climbed 15.9% to $6.99, surpassing the $4.68 estimate by $2.29, while GAAP EPS increased 17.9% to $6.27 from $5.32 a year earlier. Net income for the quarter was $1.34 billion, up from $1.19 billion in the prior-year period.

Elevance raised its full-year 2026 adjusted EPS guidance to at least $29.00 and GAAP EPS to at least $22.00, and projected full-year operating cash flow of at least $6.5 billion. The company also reaffirmed confidence in delivering at least 12% growth in adjusted diluted EPS in 2027, starting from a higher earnings baseline of at least $26.75. Shares rallied following the announcement.

Segment results showed the Health Benefits division generating $43.36 billion in operating revenue, up 2.6% year over year, while the Carelon services segment grew 5% to $19.3 billion. The benefit expense ratio ticked up 70 basis points to 90.6%, and operating margin edged down 10 basis points to 2.5%. Total medical membership stood at 44.9 million, a 1.1% decline from a year ago. The company repurchased 0.8 million shares for $330 million during the quarter and declared a quarterly dividend of $1.72 per share.

In a separate announcement, Elevance named Jeff Park as President of Carelon, effective December 1, 2026, tasking him with leading the segment's next phase of growth and expanding its services in affordability and consumer experience.