Elevance Health Inc. (NYSE:ELV) shares advanced 1.1% following the release of its third-quarter 2026 financial results on Wednesday, after the US health insurance company reported earnings and revenue above analysts’ expectations and raised its full-year outlook.
The company posted adjusted earnings per share of $6.99, exceeding the analyst consensus estimate of $4.70.
Third-quarter operating revenue reached $50.4 billion, compared with market expectations of $49.32 billion. The figure represented a 0.7% increase from the $50.1 billion reported in the corresponding period of 2025.
Following the quarterly results, Elevance Health increased its adjusted earnings guidance for 2026 to at least $29.00 per share, above the analyst consensus forecast of $27.24.
The company also raised its full-year operating cash flow guidance to a minimum of $6.5 billion.
The benefit expense ratio, which measures the proportion of premium revenue used to cover medical benefits, improved by 70 basis points to 90.6%.
Elevance attributed the improvement primarily to better performance in its Medicare Advantage and Individual Affordable Care Act businesses compared with the previous year.
Gail K. Boudreaux, President and Chief Executive Officer of Elevance Health, commented on the company’s financial performance and outlook.
“Elevance Health’s third quarter results reflect stronger execution across our diversified portfolio and underscore the earnings power of the business,” Boudreaux said.
“We are raising our 2026 earnings outlook and remain confident in delivering at least 12% growth in adjusted diluted earnings per share in 2027 from our higher earnings baseline of at least $26.75.”
The company’s total medical membership stood at approximately 44.9 million as of 30 September 2026, representing a decline of 487,000 members compared with the same date last year.
The reduction reflected lower enrolment across Medicaid, Medicare Advantage and employer group risk-based insurance products.
These declines were partially offset by an increase in commercial fee-based membership.
Within its operating divisions, the Health Benefits segment generated revenue of $43.4 billion, an increase of 3% year on year.
The company attributed the growth to higher premium yields and increased service fee revenue.
Meanwhile, the Carelon segment reported operating revenue of $19.3 billion, representing a 5% increase from the prior-year period.
Carelon’s operating gain rose 17% to $900 million, contributing to the group’s quarterly operating performance.
The segment results reflected revenue growth across both the company’s health insurance operations and its healthcare services businesses, despite the overall reduction in medical membership.
Elevance Health also announced a fourth-quarter dividend of $1.72 per share, scheduled for payment on 18 December 2026.
The quarterly figures showed higher operating revenue, an improvement in the benefit expense ratio and earnings above market expectations.
The revised guidance also establishes a higher adjusted earnings target for 2026, while management’s outlook for 2027 indicates an expectation of at least 12% adjusted diluted earnings per share growth from a baseline of at least $26.75.
Investors will continue to assess the company’s membership trends, medical benefit costs and performance across its Health Benefits and Carelon divisions as Elevance Health approaches the end of its financial year.