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Elevance Health’s 12% EPS Growth Target — Can 2026 Mark The Earnings Trough?

Elevance Health reported second-quarter 2026 results above its initial expectations, supported by favorable benefit expense trends in Medicare Advantage and individual ACA plans, disciplined cost management, and continued execution of care management programs. The company raised full-year adjusted diluted EPS guidance to at least $27 and expects to return to at least 12% adjusted EPS growth in 2027 from the higher 2026 base. Medical membership totaled 44.9 million at quarter-end, reflecting anticipated sequential declines from fee-based customer transitions and attrition in individual ACA and Medicaid. Operating revenue increased 0.8% year-over-year to $49.8 billion as higher premium yields and product revenue offset lower membership. Operating cash flow reached $1.9 billion during the quarter, leading Elevance Health to raise full-year operating cash flow guidance to at least $6 billion. Medicaid remains a key area of pressure. Elevated cost trends continue across behavioral health, specialty pharmacy, outpatient surgery, and emergency department utilization.