Elevance Health reported second quarter 2026 results that exceeded analyst expectations, leading the company to raise its full-year 2026 guidance. Adjusted diluted earnings per share (EPS) reached $7.45, beating the analyst consensus estimate of $6.21. Operating revenue rose to $49.826 billion, surpassing the consensus estimate of $48.69 billion, driven by higher premium yields in the Health Benefits segment and growth in CarelonRx product revenue. Following the announcement, Elevance Health shares rose 1.8% to $397.20 in pre-market trading.

Based on strong operating results, the company raised its full-year 2026 guidance across key metrics. Elevance now expects adjusted diluted EPS to be at least $27.00, an increase from prior guidance of at least $26.75 and above the Wall Street consensus estimate of $26.91. The company also raised its fiscal 2026 operating cash flow forecast to at least $6.0 billion.

Key Financial Highlights

The following table summarizes consolidated enterprise performance for the three months ended June 30, 2026:

The benefit expense ratio of 89.7% increased 80 basis points year over year, driven by expected elevated medical cost trend in Government businesses, partially offset by improved performance in Individual ACA compared to the prior year. The operating expense ratio was 11.1%, while the adjusted operating expense ratio was 11.0%, an increase of 100 basis points, driven primarily by targeted investments in workforce and capabilities.

Analyst Reactions

Several analysts revised their price targets on Elevance Health following the earnings announcement:

• Baird analyst Michael Ha maintained the stock with a Neutral rating and raised the price target from $331 to $393.
• Barclays analyst Andrew Mok maintained Elevance Health with an Overweight rating and lowered the price target from $480 to $457.
• Guggenheim analyst Jason Cassorla maintained the stock with a Buy rating and raised the price target from $399 to $455.
• Wells Fargo analyst Stephen Baxter maintained Elevance Health with an Overweight rating and lowered the price target from $492 to $473.

Segment Performance

Health Benefits

Health Benefits segment operating revenue increased $1.1 billion, or 3%, compared to the prior year quarter to $42.7 billion. Operating gain decreased year over year to $0.9 billion, reflecting higher benefit expense and targeted investments. Medical membership of approximately 44.9 million as of June 30, 2026, decreased by 469 thousand sequentially.

Carelon

Carelon operating revenue increased $1.1 billion, or 6%, compared to the prior year quarter to $19.2 billion, driven by the scaling of Carelon Services risk-based solutions and CarelonRx product revenue. Operating gain totaled $0.9 billion, an increase of 1% year over year.

Capital Allocation

During the second quarter of 2026, the company repurchased 0.7 million shares of its common stock for $234 million, at a weighted average price of $344.62. The company paid a quarterly dividend of $1.72 per share, representing a distribution of cash totaling $373 million. On July 14, 2026, the Board declared a third quarter 2026 dividend of $1.72 per share, payable on September 25, 2026, to shareholders of record on September 10, 2026.

Elevance Health will release its second quarter 2026 financial results on July 15, 2026, at 6:00 a.m. Eastern Daylight Time (EDT). Management will review these results and its outlook during a conference call scheduled for 8:30 a.m. EDT that same morning. The discussion will provide insights into the company's performance and future guidance for stakeholders.

Conference Call Details

Investors can access the live conference call by dialing in at least 15 minutes before the start time. The company has provided specific domestic and international dial-in numbers for the event. A replay of the call will also be available for those unable to attend the live session.

Dial-In Information

Webcast Access

The conference call will be accessible via a live webcast on the Elevance Health website under the "Investors" link. Alternatively, participants can access the webcast directly through a provided link. A replay of the webcast will be available starting at 11:30 a.m. EDT on July 15, 2026, and will remain accessible until the end of the day on August 14, 2026.

About Elevance Health

Elevance Health serves as a lifetime health partner dedicated to improving the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey by connecting them to necessary care, support, and resources. Elevance Health's companies serve approximately 105 million consumers through a diverse portfolio of medical, pharmacy, behavioral, clinical, home health, and complex care solutions.