# Elevance Q3 2026 Earnings Beat

> Elevance Health reports $50.4B revenue and $6.99 EPS beat with 12% growth outlook for 2027.
- Title: Elevance Q3 2026 Earnings Beat · The Motley Fool | Shortify
- Summary: Elevance Health reports $50.4B revenue and $6.99 EPS beat with 12% growth outlook for 2027. Elevance Health raised 2026 earnings guidance to at least $29.00…
- Keywords: elevance, elv, q3 2026, earnings call, carelon, medicaid, medicare advantage, individual ac, health insurance, premium yields, operating margin, share repurchases
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/21/elevance-elv-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-21T16:57:54+00:00
- Read time: 2 min
- Topics: elevance, elv, q3 2026, earnings call, carelon, medicaid, medicare advantage, individual ac, health insurance, premium yields, operating margin, share repurchases
## Q3 Results
Elevance Health reported operating revenue of $50.4 billion, a 0.7% increase driven by higher premium yields and CarelonRx product revenue.
## EPS Beat
Adjusted diluted EPS reached $6.99, exceeding the company outlook due to $0.50 per share in operating outperformance and favorable benefit expense.
## 2026 Guidance
Adjusted EPS guidance raised to at least $29.00 for the full year, representing an increase from the previous forecast based on operating momentum and non-operating benefits.
## Medicaid Margin
Benefit expense ratio improved to 90.6%, representing a 70 basis point improvement due to performance in Medicare Advantage and individual ACA business.
## Membership Trends
Total medical membership decreased to 44.9 million, a decline of 487,000 members as commercial fee-based growth was offset by Medicaid attrition.
## Carelon Performance
Carelon operating gain increased 17% year over year to $0.9 billion driven by risk-based solutions and specialty pharmacy performance.
## 2027 Outlook
Elevance raised 2027 earnings baseline to at least $26.75, representing a $0.75 increase based on improved results and visibility entering 2027.
## Medicaid Strategy
CFO Kaye stated, 'We continue to view 2026 as the trough for our Medicaid margin and expect improvement in 2027'.

> We continue to view 2026 as the trough for our Medicaid margin and expect improvement in 2027
## Carelon Solutions
Carelon's risk-based oncology solution reduced avoidable inpatient admissions by 15% in the commercial market.
## Cost Savings
Elevate medical cost management platform identified more than $300 million in anticipated savings during the current year.
## Medicare Advantage
Approximately 50% of Medicare Advantage members will be enrolled in plans rated four stars or higher for the 2027 period.
## Commercial Growth
Commercial fee-based membership grew 1.9% to 21.0 million, reflecting strong demand for Anthem Balance funded product.
## Share Repurchases
Share repurchases totaled 0.8 million shares for $330 million at a weighted average price of $398.75 per share.
## Carelon Expansion
Carelon Services operating gain increased 33.3% to $292 million reflecting expansion of risk-based clinical solutions.
## 2027 Earnings
Elevance expects at least 12% adjusted diluted earnings per share growth in 2027 from the 2026 earnings baseline.
## Leadership Change
Jeff Park appointed as President of Carelon to lead scaling of health services and pharmacy businesses.
## Key takeaway

Elevance Health raised 2026 earnings guidance to at least $29.00 per share and 2027 EPS growth to at least 12% based on Medicaid rate improvements and Carelon solutions.