RBC Capital analyst Ben Hendrix has maintained a Sector Perform rating on Elevance Health while lowering the price target to $424 from the previous $439. This adjustment adds to a divergent set of outlooks on Wall Street, contrasting with recent positive revisions from other major firms. While RBC's revision suggests a more cautious stance on valuation or growth trajectory, other analysts have raised their targets, reflecting a generally strong bullish sentiment for the stock.

Rating and Price Action

Despite the downward revision from RBC Capital, other firms have recently increased their price targets. TD Cowen analyst Ryan Langston maintained a Buy rating and raised the price target to $465 from $400. Similarly, Truist Securities analyst David Macdonald kept a Buy rating, increasing the target to $475 from $450. Wells Fargo analyst Stephen Baxter also maintained an Overweight rating with a revised price target of $492, up from $391. Barclays analyst Andrew Mok maintained an Overweight rating but lowered the price target to $457 from $480.

Key Details

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.