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Get filing alertsElevance Health beats Q2, raises FY26 adjusted EPS guidance to at least $27.00
Filed July 15, 2026 · Period ending July 15, 2026 · ~1 min read
Key Changes
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high
Raised full-year 2026 adjusted EPS guidance to at least $27.00 (from prior outlook) on strong Q2 operating results; Q2 adjusted EPS of $7.45 benefited from favorable benefit expense and ~$0.80/share net below-the-line gain.
Exhibit 99.1 view on EDGAR → -
high
Raised FY26 operating cash flow guidance to at least $6.0 billion; Q2 operating cash flow of $1.9 billion reflects timing of a state Medicaid pass-through payment and underlying business strength.
Exhibit 99.1 view on EDGAR → -
high
Recorded $935 million accrual (H1 2026) for potential exposure related to historical Medicare Advantage risk adjustment data per CMS notice dated Feb 27, 2026; excluded from adjusted earnings, adds $4.27/share to GAAP-to-adjusted EPS reconciliation.
Exhibit 99.1 view on EDGAR → -
medium
Medical membership declined 469,000 sequentially to 44.9 million as of June 30, driven by known commercial fee-based customer transition and anticipated Individual ACA and Medicaid attrition.
Exhibit 99.1 view on EDGAR → -
medium
Benefit expense ratio rose 80 bps year-over-year to 89.7%, driven by expected elevated medical cost trend in Government businesses, partially offset by improved Individual ACA performance.
Exhibit 99.1 view on EDGAR →
Summary
Elevance Health reported second quarter 2026 operating revenue of $49.8 billion, up 0.8% year-over-year, and raised full-year adjusted EPS guidance to at least $27.00 on the strength of Q2 results. The quarter's adjusted EPS of $7.45 exceeded expectations, supported by favorable benefit expense performance and an approximately $0.80 per share net below-the-line benefit.
Operating cash flow guidance also increased to at least $6.0 billion for the full year. The company recorded a $935 million accrual in the first half of 2026 for potential exposure related to historical Medicare Advantage risk adjustment data flagged by CMS in February. This charge is excluded from adjusted earnings.
Medical membership declined sequentially by 469,000 to 44.9 million, driven by a known commercial customer transition and expected Individual ACA and Medicaid attrition, while the benefit expense ratio rose 80 basis points to 89.7% on elevated Government business medical cost trends. The company is accelerating targeted investments in cost management, member experience, and Carelon's integrated solutions to support a return to at least 12% adjusted EPS growth in 2027.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
2Q 2026 operating revenue of $49.8 billion, up 0.8% from 2Q 2025 •2Q 2026 diluted EPS1 of $6.71 and adjusted diluted EPS2 of $7.45; results were supported by favorable benefit expense performance and an approximately $0.80 per share net below-the-line benefit •FY 2026 diluted EPS1 guidance raised to at least $20.10; adjusted diluted EPS2 guidance raised to at least $27.00, reflecting strong second quarter operating results
Elevance Health reported second quarter 2026 operating revenue of $49.8 billion, up 0.8% year-over-year. Adjusted diluted EPS of $7.45 exceeded expectations, supported by favorable benefit expense performance and an approximately $0.80 per share net below-the-line benefit. The company raised full-year 2026 adjusted diluted EPS guidance to at least $27.00, reflecting strong second quarter operating results and improved operating performance across its diversified portfolio.
Added in current filing · view on EDGAR →
Accelerating targeted investments in capabilities that lower healthcare costs, simplify the member and provider experience, and strengthen Carelon's integrated solutions
The company is accelerating targeted investments in capabilities focused on medical cost management, member experience, provider connectivity, operating efficiency, and Carelon's value-based solutions. These investments are intended to strengthen operations, improve consistency over time, and support the company's confidence in returning to at least 12% adjusted EPS growth in 2027 off the 2026 earnings baseline.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 17, 2026 · How we verify