Elevance Health Q2: Membership Slides 1.5%, CMS Risk Adjustment Matter Closed

summarizeSummary

Elevance Health posted Q2 2026 net income of $1.46 billion, down 16.1% YoY, as higher medical costs and a risk adjustment accrual weighed on results. Membership declined to 44.9 million, but CMS closed its enforcement matter without sanctions, and full-year adjusted EPS guidance was raised.

check_boxKey Events · Earnings and Guidance · ELV

• Q2 Earnings Decline

  Shareholders' net income fell 16.1% to $1.46 billion, with diluted EPS of $6.71 versus $7.72 a year ago, driven by higher benefit and operating expenses.

• Membership Attrition

  Total medical membership dropped 1.5% YoY to 44.9 million, with Medicaid down 4.3% and Medicare Advantage down 15.9%, partially offset by growth in Employer Group Fee-Based.

• CMS Risk Adjustment Matter Resolved

  CMS closed its enforcement process on July 13, 2026 without sanctions; the company paid $342 million of the $935 million accrual, leaving a $593 million liability.

• Full-Year Guidance Raised

  Adjusted EPS guidance was raised to at least $27.00, up from a prior view that was already lifted, reflecting confidence in the back half of the year.

auto_awesomeAnalysis · ELV · Finance

Elevance Health's Q2 2026 results reveal a 16.1% drop in shareholders' net income to $1.46 billion, pressured by higher medical costs and a $935 million accrual for Medicare Advantage risk adjustment data resubmission. Total medical membership contracted 1.5% year-over-year to 44.9 million, with notable attrition in Medicaid and Medicare Advantage. On a positive note, CMS closed its enforcement process on July 13 without sanctions, and the company raised its full-year adjusted EPS guidance to at least $27.00. The quarter reflects ongoing cost pressures and membership headwinds, partially offset by strong investment income and share repurchases.