Elevance Health Inc (NYSE:ELV) Tops Q3 Earnings and Revenue Estimates

Elevance Health Inc (NYSE:ELV) reported third-quarter financial results that surpassed analyst expectations, delivering a notable beat on earnings per share while revenue growth was driven by strategic acquisitions and premium increases.

Quarterly Performance Versus Estimates

The healthcare giant reported a strong quarter, with both top and bottom-line results coming in ahead of market forecasts. The company's performance demonstrates its ability to navigate a complex healthcare environment while continuing to grow its diversified business segments.

• Revenue: $50.1 billion reported versus $49.86 billion estimated
• Earnings Per Share (Non-GAAP): $6.03 reported versus $4.98 estimated

The substantial earnings beat of over $1.00 per share highlights the company's effective cost management and operational execution during the period. The revenue outperformance, though more modest, confirms the underlying strength of the business model.

Market Reaction

Investors responded positively to the earnings release, with the stock showing significant upward momentum in pre-market trading. The positive price action suggests the market views these results as a strong indicator of the company's current operational health and future prospects. The immediate market reaction reflects approval of both the earnings surprise and the company's strategic direction as outlined in its quarterly report.

Key Financial and Operational Highlights

The quarter was characterized by robust revenue growth, though profitability metrics faced pressure from increased medical costs and strategic investments. The company's Health Benefits segment saw revenue increase to $42.2 billion, up 10% from the prior year quarter, primarily driven by higher premium yields, recent acquisitions, and growth in Medicare Advantage membership.

The Carelon segment demonstrated even stronger growth, with operating revenue reaching $18.3 billion, a 33% increase compared to the same period last year. This growth was fueled by acquisitions in home health and pharmacy services, along with the scaling of Carelon Services risk-based solutions.

However, the company's medical benefit expense ratio increased to 91.3%, up 180 basis points year-over-year, reflecting elevated cost trends primarily in the Medicare business. This was partially offset by an improved operating expense ratio of 10.5%, representing 130 basis points of improvement.

Capital Management and Shareholder Returns

Elevance Health maintained its commitment to returning capital to shareholders through both share repurchases and dividends. During the quarter, the company repurchased 2.9 million shares of its common stock for $875 million. The board of directors also declared a quarterly dividend of $1.71 per share, continuing its pattern of consistent shareholder returns.

The company ended the quarter with approximately $7.2 billion of remaining share repurchase authorization, providing significant flexibility for future capital return initiatives.

Looking Ahead

While the press release did not provide specific quantitative forward guidance, management expressed confidence in their strategic positioning for 2026. The company emphasized disciplined execution and focus on advancing affordability through value-based care partnerships and AI-enabled digital solutions.

Analyst estimates for the coming periods project continued growth, with fourth-quarter 2025 revenue estimated at approximately $50.15 billion and full-year 2025 revenue projected around $198.89 billion.

For more detailed earnings analysis and future estimates, visit the Elevance Health earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.