Elevance Health (ELV) Delivers Q3 Results Above Expectations, Reaffirms 2025 Guidance

Elevance Health, Inc. (NYSE: ELV) has released its financial results for the third quarter of 2025, showcasing a performance that aligns with expectations and provides insights into the company’s strategic direction for the upcoming year.

Q3 Results Driven by Medicare Growth and Carelon Segment Expansion

Elevance Health has reported an operating revenue of $50.1 billion for the third quarter of 2025, marking a 12% increase compared to the same period in 2024. The company achieved a diluted EPS of $5.32, surpassing the expected EPS of $4.98. Additionally, the adjusted diluted EPS reached $6.03, indicating robust financial health. This performance was driven by higher premium yields, recent acquisitions, and growth in Medicare Advantage membership, although it was partially offset by Medicaid membership losses due to eligibility reverifications.

The operating gain for the quarter was $1.3 billion, a slight decrease from $1.4 billion in the previous year. The adjusted operating gain also saw a decline, from $2.5 billion in 2024 to $1.3 billion in 2025. Despite these drops, the operating margin remained at 2.6%, while the adjusted operating margin was 2.7%. The benefit expense ratio increased to 91.3%, reflecting expected cost trends, particularly in Medicare due to changes in the Inflation Reduction Act.

Elevance Health’s Health Benefits segment reported operating revenue of $42.2 billion, a 10% increase from the previous year. However, the operating gain decreased significantly from $1.6 billion in 2024 to $0.6 billion in 2025. This was influenced by higher medical costs and increased investments in workforce and technology. The Carelon segment showed an impressive 33% revenue growth, reaching $18.3 billion, driven by acquisitions in home health and pharmacy services.

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ELV Reaffirms 2025 Guidance and Focuses on Long-Term Growth Initiatives

Looking ahead, Elevance Health has reaffirmed its guidance for the full year 2025, projecting adjusted diluted EPS of approximately $30.00 and a benefit expense ratio of about 90.0%. The company remains committed to advancing affordability and enhancing the member experience through its value-based care partnerships and AI-enabled digital solutions. These initiatives are expected to simplify access and improve outcomes for members.

Elevance Health plans to continue its disciplined approach to managing controllable factors, positioning its businesses for long-term growth and value creation. The company has returned $3.3 billion of capital to shareholders year-to-date and maintained a strong balance sheet with $2.6 billion in cash and investments at the parent company level as of September 30, 2025.

In terms of strategic investments, Elevance Health is focusing on scaling Carelon’s capabilities, strengthening its workforce, and accelerating technology adoption. The company has also announced a fourth-quarter dividend of $1.71 per share, payable on December 19, 2025, reflecting its commitment to returning value to shareholders. As Elevance Health navigates the evolving healthcare landscape, it remains focused on delivering sustainable growth and enhancing stakeholder value.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.