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Elevance Health Q3 2026 EPS Beat
Elevance Health raises 2026 EPS guidance to $29 and 2027 baseline to $26.75 on Medicaid, Medicare Advantage outperformance.
In brief
Elevance Health raises 2026 EPS guidance to $29 and 2027 baseline to $26.75 on Medicaid, Medicare Advantage outperformance. Elevance Health raised 2026 EPS guidance to at least $29 and increased 2026 earnings baseline to $26.75, up $0.75, due to Medicaid, Medicare Advantage, and individual ACA outperformance…
Elevance Health Q3 2026 Earnings
![[Elevance Health Q3 2026 Earnings Call] Elevance Lifts 2026 EPS Guidance to at Least $29, Raises 2027 Baseline by $0.75 to $26.75 on Medicaid, Medicare Advantag](https://img.biggo.com/yyGsZPHVFtiPFCSG5c-eHnbyXdRTcQuStEwiCd7ophQ/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19FTFZfMjAyNi0xMC0yMV8xNzkyNTk1OTQ0LndlYnA.webp)
Elevance Health reported third-quarter 2026 adjusted diluted EPS of $6.99, beating its outlook.
Operating Revenue Growth
Operating revenue rose just under 1% to $50.4 billion, driven by higher premium yields and CarelonRx product revenue.
Benefit Expense Ratio
The consolidated benefit expense ratio improved 70 basis points to 90.6%.
Operating Expense Ratio
The adjusted operating expense ratio rose 90 basis points to 11.3% due to targeted investments.
2026 EPS Guidance Raised
Management raised full-year 2026 adjusted EPS guidance to at least $29.
2026 Earnings Baseline Lifted
Elevance increased the 2026 earnings baseline to at least $26.75, up $0.75.
2027 EPS Growth Target
From this higher base, Elevance remains confident in delivering at least 12% adjusted EPS growth in 2027.
Medicaid Performance
Medicaid results were ahead of outlook, with 2026 seen as the trough for margin improvement.
Medicare Advantage Outlook
Medicare Advantage full-year operating margin expected at least 2%, progressing toward 3%-5% target.
Individual ACA Performance
Individual ACA membership expected to end 2026 at at least 1.2 million, up from prior expectations.
CarelonRx Performance
CarelonRx posted 10.8% operating gain growth with a 5.3% margin.
2027 EPS Growth Drivers
Margin improvement in health benefits, Carelon expansion, and operating efficiency support 12% EPS growth in 2027.
CFO Statement
CFO Mark Kaye emphasized growth is not reliant on any single business or assumption.
2027 Medicaid Margin Outlook
Medicaid is expected to improve in 2027 as rates align with cost trends, with 2026 seen as the trough.
The main idea
Elevance Health raised 2026 EPS guidance to at least $29 and increased 2026 earnings baseline to $26.75, up $0.75, due to Medicaid, Medicare Advantage, and individual ACA outperformance.
