Elevance Q3 10-Q: EPS Up 17.9%, but Health Benefits Margin Compresses and 2027 Star Ratings Slip
ELV sits 61% above its 52-week low of $274.84.
Summary
Elevance's Q3 10-Q confirms the EPS beat but reveals a 27.5% drop in Health Benefits operating gain and a decline in 2027 Medicare Advantage Star Ratings that pressures 2028 payments.
Key Events · Earnings and Guidance · ELV
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Q3 EPS Up 17.9% to $6.27
Shareholders' net income rose 14.8% to $1,365M on total revenues of $51,429M (+1.4%), helped by higher investment income and lower intangible amortization.
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Health Benefits Margin Compresses
Health Benefits operating gain fell 27.5% to $436M in Q3 and 20.3% to $3,489M for nine months on higher medical costs across most lines of business.
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2027 Star Ratings Decline
About 49% of current Medicare Advantage members are in 4.0+ Star plans for 2027 ratings (used for 2028 payments), down from roughly 55% in the prior year's ratings.
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CMS Accrual Weighs on Nine-Month Results
Nine-month net income fell 10.2% to $4,592M, largely from the $935M CMS risk-adjustment accrual; $342M was paid May 27, 2026, leaving $593M accrued.
Analysis · ELV · Finance
The headline beat was already out via this morning's 8-K, but the full 10-Q shows where the money came from and where it's leaking. Q3 diluted EPS rose 17.9% to $6.27 on higher investment income and lower intangible amortization, while Health Benefits operating gain fell 27.5% to $436M as medical costs rose across most lines. The bigger structural item is the 2027 Medicare Advantage Star Ratings: only about 49% of members sit in 4.0+ Star plans versus roughly 55% for the ratings used in 2027 payments, which pressures 2028 bonus revenue. Nine-month net income is down 10.2% to $4,592M, largely from the $935M CMS risk-adjustment accrual taken in Q1 (with $593M still accrued). Membership fell 1.1% to 44.9M, with Medicare Advantage down 15.5%.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 29% of the 1517 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.52%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ELV was trading at $441.36 on NYSE in the Finance sector, with a market capitalization of approximately $95.7B. The 52-week trading range was $274.84 to $450.69. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.