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Elevance Health, Inc.
S&P 500
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$93.8B
Market Cap
13.9
P/E
14.53
PEG
9.3%
ROCE
13.3%
ROE
0.74
D/E
4.2%
OPM
-1.7%
% from 52W High
77
α RS
🔍 ELV is showing a high-conviction setup because it matches 4 of 39 tracked screener presets, RS Rating is 77, and it's within 1.7% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High
Sources
Conviction 4/39 · RS Rating 77 · 1.7% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for ELV including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
📊 Sector Averages
About

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates in four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to individual, employer group risk-based and fee-based, BlueCard, Medicare, Medicaid, and FEP members; health products; a broad array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, and supplemental health insurance benefits. The company also operates in the pharmacy services business; and markets and offers pharmacy services, including home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services, as well as infusion services and injectable therapies through ambulatory infusion centers. In addition, it provides healthcare related services and capabilities, including specialty care enablement and utilization management support for specialized clinical domains; behavioral health and comprehensive care management services; palliative care services and management; virtual care; and payment integrity, subrogation, clinical data exchange through its HealthOS platform, research and data, reporting and clinical analytics, information technology, and business process support services, as well as manages home health, post-acute institutional management, and durable medical equipment costs; and supports plans in managing home and community-based services. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brands. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is based in Indianapolis, Indiana.

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⭐ Superinvestors Holding ELV
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Manager Shares Value % of Fund Period
Seth Klarman Baupost Group 1.28M $373.3M 7.30% Mar 2026
Steve Cohen Point72 Asset Management 59.3K $17.4M 0.02% Mar 2026
Jim Simons Renaissance Technologies LLC 15.6K $4.6M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$49.8B
+0.8% YoY
Adjusted Operating Gain
$1.8B
-28% YoY
Adjusted Operating Margin
3.6%
-1.4pp YoY
Adjusted EPS
$7.45
Beat outlook; included ~$0.80 non-recurring benefit
What Went Right
  • Adjusted EPS of $7.45 beat outlook, with ~$0.50 of operating outperformance split evenly between Medicare Advantage and individual ACA.
  • FY2026 adjusted EPS guidance raised to at least $27 and operating cash flow guidance to at least $6.0B.
  • Medicare Advantage is on track to at least 2% operating margin; Carelon behavioral health programs deliver ~10% cost savings and CareBridge mid-teens medical savings.
What to Watch
  • Medicaid full-year operating margin outlook remains approximately -1.75%; elevated trend persists in behavioral health, specialty pharmacy, outpatient surgery, and ED utilization.
  • Company expects to exit additional Medicaid markets over the next 12-18 months where economics do not support sustainable returns, after the mutual D.C. exit.
  • ACA favorability is not being extrapolated; most of the 2025 risk adjustment favorability is being re-established into 2026 accruals due to bronze-plan seasonality and changing member mix.
Management Guidance
  • FY2026 adjusted diluted EPS guidance raised to at least $27.00.
  • FY2026 operating cash flow guidance raised to at least $6.0 billion.
  • Q3 2026 adjusted EPS expected to be approximately 17% of revised full-year guidance.
  • FY2026 adjusted operating expense ratio expected in the upper half of the full-year guidance range.
  • FY2026 Medicaid operating margin outlook remains approximately -1.75%; Medicare Advantage operating margin path to at least 2%.
  • 2027 adjusted EPS growth expected to be at least 12% off the 2026 baseline of at least $26.
Investor Lens
The thesis looks modestly stronger after this call: the Q2 beat and guidance raise demonstrate execution, and the non-recurring $0.80 below-the-line benefit is being reinvested rather than taken as profit, preserving a higher 2026 baseline. Management reiterated at least 12% adjusted EPS growth in 2027 off a baseline of at least $26. The main unresolved area remains Medicaid, where the -1.75% margin is still called the trough but management is taking portfolio actions and planning further exits. Overall, the earnings base is more diversified, reducing dependence on any single business recovery.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beats with $7.45 EPS; FY guide raised to at least $27
Revenue
Operating revenue was $49.8B in Q2 2026, up 0.8% YoY, driven by higher premium yields and CarelonRx product revenue, partly offset by lower health plan membership. Health Benefits revenue was $42.7B and Carelon revenue was $19.2B.
Profitability
Adjusted diluted EPS was $7.45, ahead of outlook, and included approximately $0.80 of non-recurring below-the-line benefit. GAAP diluted EPS was $6.71; operating outperformance of about $0.50 was split between Medicare Advantage and individual ACA.
Margins
The benefit expense ratio was 89.7%, up 80 bps YoY, and the adjusted operating expense ratio was 11.0%, up 100 bps from targeted investments. Adjusted operating margin came in at 3.6%, down 1.4pp YoY, while Health Benefits operating margin declined to 2.1% from 3.8% and Carelon margin slipped to 4.9% from 5.2%.
Balance Sheet
Q2 operating cash flow was $1.9B, helped by timing of a state Medicaid pass-through payment. Parent company cash and investments were approximately $2.1B; days in claims payable were 45.4, up 2.9 days YoY. The company repurchased 0.7M shares for $234M, paid $373M in dividends, and had about $5.3B of buyback authorization remaining.
Key Risks
Medicaid cost trend remains elevated in behavioral health, specialty pharmacy, outpatient surgery, and ED utilization, with no material second-half trend improvement assumed. The company plans additional Medicaid market exits over the next 12-18 months. ACA bronze-plan seasonality and re-establishment of risk adjustment favorability could pressure second-half results.
Outlook
FY2026 adjusted EPS guidance was raised to at least $27.00 and operating cash flow guidance to at least $6.0B. Q3 2026 adjusted EPS is expected to be about 17% of the full-year total, with 2027 growth of at least 12% off a baseline of at least $26.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-15
Second quarter results exceeded expectations, prompting a raise in 2026 EPS guidance to at least $27 and reaffirming confidence in at least 12% EPS growth for 2027. Medicaid remains challenging but manageable, with targeted market exits and prudent margin outlook, while Medicare Advantage, Commercial, and Carelon segments show strong performance and growth potential.
Q1 2026 Q1 2026 2026-04-22
Q1 results exceeded expectations with strong EPS and revenue growth, driven by ACA seasonality, cost management, and non-recurring investment income. Full-year EPS guidance was raised, and strategic investments in AI and Carelon are supporting operational improvements and long-term growth.
Q4 2025 Q4 2025 2026-01-28
2026 is set as a year of execution and repositioning, with disciplined pricing, targeted investments, and margin stabilization across all segments. Guidance reflects a trough in Medicaid, deliberate Medicare and ACA actions, and confidence in returning to 12%+ EPS growth in 2027.
Q3 2025 Q3 2025 2025-10-21
Q3 results met expectations with strong revenue growth and disciplined cost management. 2025 adjusted EPS is reaffirmed at ~$30, with Medicaid margins expected to trough in 2026 before improving in 2027. Strategic investments in technology and Carelon are prioritized for long-term growth.
Q2 2025 Q2 2025 2025-07-17
Q2 results met expectations, but full-year 2025 adjusted EPS guidance was revised down to ~$30 due to persistent elevated medical cost trends in ACA and slower Medicaid rate alignment. Carelon drove strong growth, while strategic investments and cost controls aim to stabilize margins and support long-term growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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