Elevance Health, Inc., a U.S. health insurer, raised its 2026 earnings outlook Oct. 21 after third-quarter profit increased, although medical membership and reportable segments operating gain declined.
The company now expects reported earnings of at least $22 per diluted share and adjusted earnings of at least $29 per diluted share for the year. It also lifted its operating cash flow forecast to at least $6.5 billion.
Profit attributable to shareholders rose 14.8% from a year earlier to $1.365 billion in the quarter ended Sept. 30. Reported earnings increased to $6.27 per diluted share from $5.32, while adjusted earnings rose to $6.99 from $6.03. Operating revenue grew 0.7% to $50.4 billion.
Elevance had about 44.9 million medical members at quarter-end, 487,000 fewer than a year earlier. The company reported lower enrollment in Medicaid, Medicare Advantage and employer group risk plans. Those declines partly offset revenue gains from higher premium yields, CarelonRx product sales and service fees, Elevance said.
Benefit expenses used 90.6% of premiums, compared with 91.3% a year earlier. Still, reportable segments operating gain declined 2.0% to $1.269 billion. Operating gain fell in the Health Benefits business, where Elevance said targeted investments weighed on results, but increased in Carelon, its pharmacy and health services business.
Nonoperating items contributed $1.85 per share to reported quarterly earnings. Elevance’s adjusted annual earnings outlook excludes several items, among them $4.28 per share for estimated potential exposure related to historical Medicare Advantage risk adjustment data.
Elevance furnished its earnings release as Exhibit 99.1 to a Form 8-K filed with the SEC on Oct. 21. For its fourth-quarter dividend, the company listed Dec. 4 as the record date and Dec. 18 as the payment date.
