Elevance Health announced its third-quarter 2026 results. Higher profit in the Carelon segment lifted EPS and led to an increase in full-year guidance. Meanwhile, profit in the Health Benefits segment was constrained by lower membership and investment costs.
Elevance Health's revenue for the third quarter of 2026 was $50.44 billion, up 0.7% year on year, while diluted EPS rose 17.9% from the previous quarter to $6.27. Higher profit in the Carelon segment and non-operating gains, including net investment income, lifted EPS, while operating profit in the Health Benefits segment declined due to lower membership and investment costs.
Although revenue in the Health Benefits segment increased, its operating margin declined as higher targeted investments and expenses outweighed improvement in the benefit expense ratio. Carelon Rx and Carelon Services each recorded revenue growth and higher profit, with Carelon Services notably expanding its margin.
The company raised its full-year guidance and expects adjusted diluted EPS growth of at least 12% in 2027. Operating cash flow for the 9-month period also increased substantially to more than $7.5 billion, while cash and cash equivalents remained above $10.3 billion.
Recent insider trading reports show multiple individuals, including directors and the CEO, buying and selling shares, with aggregate purchases of approximately 11,462 shares reported over the past 6 months.