Shares of Elevance Health (NYSE:ELV) tumbled more than 8% on Thursday following the release of second-quarter earnings and a full-year outlook that missed analyst expectations.
The company reported Q2 earnings per share (EPS) of $8.84, below the consensus estimate of $9.07.
Revenue for the quarter climbed to $49.4 billion, up from $43.2 billion in the same period last year and surpassing the anticipated $48.14 billion.
Operating margin, however, fell to 4.9%, down from 6.4% a year earlier.
“In the second quarter, Elevance Health made meaningful progress in delivering an experience that is simple and personal to those we serve, while advancing our efforts to enhance efficiency across the healthcare system,” said Gail K. Boudreaux, President and CEO.
She added, “With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in achieving at least 12% average annual growth in adjusted diluted EPS over time.”
For the full year 2025, Elevance now projects EPS of $30.00, significantly below the consensus estimate of $34.48.
The company attributed the lowered guidance to ongoing industry-wide pressures from rising costs in the ACA and Medicaid segments.
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