Elevance Health (NYSE:ELV) saw its stock rise 4.1% in premarket trading after the healthcare company delivered third-quarter earnings that comfortably surpassed Wall Street forecasts, reflecting solid execution across its core operations.
The health benefits group reported adjusted earnings of $6.03 per share, well above analyst expectations of $4.95. Revenue reached $50.1 billion, topping the $49.34 billion consensus and marking a 12% year-over-year increase.
“Our third quarter results were in line with expectations and reflect disciplined execution across Elevance Health,” said Gail K. Boudreaux, President and Chief Executive Officer. “In a dynamic healthcare environment, we’re focused on advancing affordability and elevating the member experience through our growing value-based care partnerships and AI-enabled digital solutions that simplify access and improve outcomes.”
The company’s benefit expense ratio came in at 91.3%, up 180 basis points compared to the prior year, reflecting higher but anticipated cost pressures in its Medicare segment. This increase was linked to seasonal trends in Part D benefits stemming from adjustments tied to the Inflation Reduction Act.
Elevance Health reaffirmed its full-year 2025 outlook, maintaining a benefit expense ratio of roughly 90.0% and an adjusted diluted EPS of about $30.00.
The operating expense ratio improved to 10.5%, down 130 basis points year over year. By contrast, the adjusted operating expense ratio rose to 10.4%, up 100 basis points, driven by targeted investments aimed at scaling Carelon’s capabilities and accelerating the adoption of new technologies.
The company also returned capital to shareholders during the quarter, repurchasing 2.9 million shares for $875 million and distributing a quarterly dividend of $1.71 per share. A fourth-quarter dividend of $1.71 per share has been declared, payable on December 19, 2025.