# Elevance Health Inc. (ELV) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ELV/thesis · /stocks/ELV/memo

## Financial Snapshot

---
ticker: ELV
step: 04
generated: 2026-05-12
source: quick-research
---

### Elevance Health, Inc. (ELV) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Operating Revenue | $170.2B | $175.2B | $167.1B | -5% (deliberate de-emphasis) |
| Health Benefits Revenue | $148.6B | $150.3B | ~$155B+ | +3% (Q4 +11%) |
| Benefit Expense Ratio (MLR) | 87.0% | 88.5% | ~89.5% | rising |
| Adjusted EPS | $33.10 | $33.04 | $34.95+ | +6% |
| GAAP EPS | $33.14 | $30.40 | $32+ | recovery |

#### Q1 2026 + FY26 Guide

| Metric | Q1 2026 / FY26 |
|--------|----------------|
| Q1 2026 Profit | $1.8B |
| FY2026 Operating Revenue | Low single-digit % decline |
| FY2026 Medical Loss Ratio | 90.2% ± 50 bps |
| Medicare Advantage Membership Change | -17% (deliberate exit from underperforming plans) |
| Medicaid Operating Margin | ~-1.75% |
| FY2026 Adjusted EPS Guide | Raised in Q1 (specifics not disclosed in search) |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$8B |
| Capital Expenditures | ~$1.4B |
| Free Cash Flow | ~$6.5B |
| Share Repurchases | ~$3.0B |
| Dividends Paid | ~$1.6B |
| Quarterly Dividend | $1.71 |
| Annual Dividend | $6.84 |
| Dividend Yield | ~1.7% |
| Cash & Marketable Securities | ~$10B |
| Total Debt | ~$30B |

#### Key Ratios (approximate)
- P/E: ~11x (FY26E adjusted EPS ~$36–38) | EV/EBITDA: ~9x | FCF Yield: ~7%
- Revenue Growth (FY25): -5% (deliberate)
- Adjusted EPS Growth: ~+6%
- Medical Loss Ratio: ~89-90% (elevated)
- Dividend Yield: ~1.7% | Buyback Yield: ~3%+
- ROE: ~12% (depressed by MLR pressure)

#### Growth Profile
FY25 was a **transition year** for Elevance:
- Operating revenue +3% Q4 but full-year flat-to-down as ELV deliberately reduced underperforming risk-based businesses (especially Medicare Advantage)
- Health Benefits segment Q4 +11% on Medicare Advantage temporary boost + commercial enrollment
- Carelon services growing
- MLR rising on Medicare + Medicaid acuity trends + IRA Part D dynamics

The 2026 setup:
- **Deliberate revenue decline** as ELV exits underperforming Medicare Advantage plans (-17% MA membership)
- **MLR 90.2% target** — elevated but stabilizing
- **Q1 2026 results raised guidance** — early signs of MA + Medicaid pricing/cost balance improving
- **Carelon services** continued growth
- Strategic focus on profitable HMO + DSNP Medicare + commercial + Carelon

The defining narrative: ELV is following the same playbook as UNH + Aetna — exit unprofitable MA membership, focus on margin recovery, accept temporary revenue decline.

#### Forward Estimates
FY2026 Guide:
- Operating Revenue: Low single-digit % decline
- MLR: 90.2% ± 50 bps
- Adjusted EPS: Raised in Q1 (specifics not disclosed)

Bull case: Medicare Advantage rate cycle improves in 2027; Medicaid state rate increases catch up to acuity; Carelon scaling drives mix toward services; multiple expands to 14x P/E. Bear case: Medicare Advantage rate cycle worsens; Medicaid margins stay negative; PBM regulation impacts CarelonRx; multiple compresses to 8-9x P/E. Consensus targets ~$450–520 vs. trading ~$405–435 (~10–25% implied upside).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ELV/fundamental

## Navigation

- Overview: /stocks/ELV
- Financials (this page): /stocks/ELV/financials
- Thesis: /stocks/ELV/thesis
- Investment Memo: /stocks/ELV/memo
- Coverage universe: /stocks