Elevance Beats Q3 by $2.28 a Share, Lifts 2026 EPS Outlook to at Least $29
ELV sits 60% above its 52-week low of $274.84.
Summary
Elevance delivered a wide Q3 beat: adjusted EPS of $6.99 against a $4.71 consensus, with roughly $1.85 of that from net nonoperating benefits and about $0.50 from operating outperformance, while reported 3Q EPS came in at $6.27. Revenue came in at $50.44B versus $49.22B expected, and the medical cost ratio fell to 90.6% from 91.3% a year ago, below the 91.1% consensus, on better Medicare Advantage and ACA individual performance. Management raised 2026 adjusted EPS guidance to at least $29 from at least $27 — a real step up from the at-least-$27 outlook reaffirmed in the September 8-K — and lifted the earnings baseline to at least $26.75 while guiding to at least 12% growth in 2027 off that base. It also raised FY26 operating cash flow guidance to at least $6.5 billion and declared a Q4 dividend of $1.72 per share, payable Dec. 18 to holders of record Dec. 4. The caveats: Medicare Advantage membership is down 15.5% year over year after deliberate product and geographic cuts, and Medicaid remains at a -1.75% full-year margin outlook, though the CFO now cites slight improvement there. With the stock at $439 and near its 52-week high of $440.67 after a 25.6% year-to-date run, the guidance raise and cost-ratio improvement are what justify the multiple; the 2027 growth target is the number to hold them to.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Elevance raised FY26 operating cash flow guidance to at least $6.5 billion and declared a Q4 dividend of $1.72 per share, payable Dec. 18 to holders of record Dec. 4.
At the time of this announcement, ELV was trading at $439.00 on NYSE in the Finance sector, with a market capitalization of approximately $95.5B. The 52-week trading range was $274.84 to $440.67. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.