Elevance Health Reports Q4 & FY25 Results; Issues Significantly Lower FY26 EPS & Revenue Guidance
ELV is trading near its 52-week low of $273.71 (14% above the low) on elevated volume (3.8× avg).
Summary
Elevance Health reported Q4 and FY25 results, but issued a significantly lower outlook for FY26 EPS and revenue, alongside projected substantial medical membership declines.
Key Events · Earnings and Guidance · ELV
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Full Year 2025 Performance
Reported full year 2025 operating revenue of $197.6 billion, an increase of 13%, but adjusted diluted EPS declined by 8.3% to $30.29 compared to the prior year.
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Significantly Lower FY2026 EPS Guidance
Projected full year 2026 adjusted diluted EPS to be at least $25.50, a substantial decrease from the $30.29 reported for full year 2025.
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Negative Revenue Outlook
Forecasted a low single-digit decline in total operating revenue for full year 2026, following a 12.8% increase in 2025.
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Projected Membership Attrition
Anticipates a decrease in total medical membership to 43.175-43.875 million by year-end 2026, down from 45.232 million in 2025, with notable declines in Commercial Risk-Based, Medicaid, and Medicare Advantage.
Analysis · ELV · Finance
Elevance Health reported fourth quarter 2025 results that were in line with expectations, showing increased operating revenue and diluted EPS. However, full year 2025 adjusted diluted EPS declined compared to the prior year, and operating cash flow also decreased. The most significant market-moving information is the company's full year 2026 outlook, which projects a substantial decline in both GAAP and adjusted diluted EPS, as well as a low single-digit decline in total operating revenue. Furthermore, the company anticipates significant medical membership attrition, particularly in its Commercial Risk-Based, Medicaid, and Medicare Advantage segments, projecting a loss of over 1.3 million members. This negative guidance, coupled with an increase in the benefit expense ratio reflecting higher medical cost trends, indicates a challenging year ahead for the company.
At the time of this filing, ELV was trading at $312.33 on NYSE in the Finance sector, with a market capitalization of approximately $71.8B. The 52-week trading range was $273.71 to $458.75. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.