Description

Elevance Health’s Carelon Bet: Can Integrated Care Become The Next Growth Engine?

Elevance Health reported first quarter 2026 adjusted diluted earnings per share of $12.58, exceeding company expectations. The performance was supported by favorable claims experience, seasonality in the individual ACA business, and approximately $1 per share from nonrecurring investment income adjustments. The company raised its full-year adjusted EPS guidance to at least $26.75, citing improving claims trends and disciplined cost management. Operating revenue grew 1.5% year-over-year to $49.5 billion, reflecting higher premium yields, partly offset by lower health plan membership. Total membership reached 45.4 million, increasing by nearly 200,000 from year-end, driven by commercial fee-based and individual ACA enrollment gains, while Medicare Advantage, Employer Group Risk, and Medicaid memberships saw anticipated declines. Medicaid performance showed modestly favorable results, with actions targeting behavioral health and specialty pharmacy costs contributing to improving cost trends. The company projects an operating margin near negative 1.