Elevance Health (ELV)
NYSE:ELV
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Elevance Health
(NYSE:ELV)
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Rating:75Outperform
Price Target:
$418.00
▲(29.39% Upside)
Action:UpgradedDate:04/22/26
The score is driven primarily by solid financial performance (strong scale and cash flow despite margin compression) and constructive technical momentum. Valuation is reasonable at a mid-teens P/E, while the latest earnings call supports the outlook via raised EPS guidance and buybacks but is tempered by the CMS accrual and ongoing Medicaid/Carelon pressure.
Positive Factors
Large, diversified membership base
A 45.4M member base across Commercial, Medicare and Medicaid provides durable premium scale and diversification. Scale supports provider contracting leverage, stable fee and premium revenue, and cross-selling of services, making core underwriting revenue more resilient over months.
Negative Factors
Sustained margin compression
Material net-margin erosion over the multi-year period signals structural pressure from rising medical costs and pricing mix shifts. Persistently lower margins reduce earnings power, limit reinvestment capacity and make results more sensitive to underwriting or cost-management execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, diversified membership base
A 45.4M member base across Commercial, Medicare and Medicaid provides durable premium scale and diversification. Scale supports provider contracting leverage, stable fee and premium revenue, and cross-selling of services, making core underwriting revenue more resilient over months.
Read all positive factors
Elevance Health (ELV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.76B
Dividend Yield1.99%
Average Volume (3M)1.69M
Price to Earnings (P/E)9.1
Beta (1Y)0.44
Revenue Growth9.44%
EPS Growth-8.53%
CountryUS
Employees104,200
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)23.51
Shares Outstanding217,162,380
10 Day Avg. Volume1,509,129
30 Day Avg. Volume1,686,804
Financial Highlights & Ratios
PEG Ratio-5.63
Price to Book (P/B)1.77
Price to Sales (P/S)0.39
P/FCF Ratio24.50
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit2.23
Enterprise Value/Ebitda11.61
Forecast
1Y Price Target
$387.47Price Target Upside19.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)26.79
Revenue Forecast (FY)$194.79B
Elevance Health Business Overview & Revenue Model
Company Description
Elevance Health Inc. operates as a health benefits company. It supports consumers, families, and communities across the entire care journey connecting to the care, support, and resources to lead healthier lives. It serves approximately 118 million...
How the Company Makes Money
Elevance Health makes money primarily by underwriting and administering health benefit plans and by providing health services. The largest revenue stream is premium revenue collected from members (or on their behalf by employers and government pro...
Elevance Health Key Performance Indicators (KPIs)
Any
Medical Memberships
Tracks the number of individuals enrolled in the company's health plans, indicating market reach, customer base size, and potential revenue from premiums.
Tracks the number of individuals enrolled in the company's health plans, indicating market reach, customer base size, and potential revenue from premiums.
Data provided by:
The Fly
The FlyElevance Health Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution and tangible operational improvements that drove a Q1 EPS beat, an upgraded full-year EPS guide, share repurchases and growing demand for integrated clinical and pharmacy offerings. Management also highlighted meaningful AI investments and measurable clinical results from Carelon/CareBridge (20% readmission reduction, >10% post-acute savings). Offsetting these positives are a material $935 million accrual related to a CMS historical risk-adjustment matter, a $129 million optimization charge, ongoing elevated Medicaid cost trends and some margin pressure and investment-driven cadence at Carelon. On balance the positives (guidance raise, underlying business beats, membership growth, cash generation and scalable AI/Carelon proof points) outweigh the negatives (one-time accrual, Medicaid pressure, Carelon margin timing), supporting a constructive outlook with manageable risks.Positive Updates
Adjusted EPS Beat and Upgraded Full-Year Guidance
Reported Q1 adjusted diluted EPS of $12.58, which exceeded expectations. Raised full-year 2026 adjusted diluted EPS guidance to at least $26.75. Management notes the revised 2026 baseline excluding a nonrecurring ~$1.00 investment valuation item is $25.75, which underpins their plan to return to at least 12% adjusted EPS growth in 2027.
Negative Updates
CMS Risk-Adjustment Matter and Material Accrual
Recorded a $935 million accrual in Q1 as the company's current best estimate of potential exposure related to historical risk-adjustment data under review by CMS. The matter remains under active engagement with CMS and carries settlement and timing uncertainty (compliance steps to be completed by July 31 under current timeline).
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Beat and Upgraded Full-Year Guidance
Reported Q1 adjusted diluted EPS of $12.58, which exceeded expectations. Raised full-year 2026 adjusted diluted EPS guidance to at least $26.75. Management notes the revised 2026 baseline excluding a nonrecurring ~$1.00 investment valuation item is $25.75, which underpins their plan to return to at least 12% adjusted EPS growth in 2027.
Read all positive updates
Company Guidance
Elevance raised 2026 adjusted diluted EPS guidance to at least $26.75 (Q1 adjusted EPS was $12.58, which included roughly $1.00 of nonrecurring net investment income), and management said the 2026 baseline excluding that one‑time $1 is at least $25.75, off of which it expects at least 12% adjusted EPS growth in 2027; Q2 EPS is expected to be about 23% of the revised full‑year guidance. Other numeric targets and results cited: operating revenue of $49.5 billion in Q1 (+1.5% Y/Y), consolidated benefit expense ratio 86.8%, adjusted operating expense ratio 10.5% (down 20 bps Y/Y), ended March with 45.4 million members (up ~200k sequentially), expect to be ~1.2 million Individual ACA members ahead of the initial outlook at Q2 though full‑year ACA effectuation guidance remains unchanged (still targeting at least 900k), full‑year operating cash flow of at least $5.5 billion, at least $2.3 billion of share repurchases for 2026 (Q1: 3.7M shares for $1.1B at just over $300/share), Medicaid operating margin guidance of ~−1.75% with high‑single‑digit membership decline assumed, Medicare Advantage operating margin target of at least 2% for 2026, Carelon Rx margin in the mid‑5% range, days in claims payable 46.6 (up 5.3 days sequentially), plus a $935 million accrual related to the CMS matter and a $129 million business‑optimization charge.Elevance Health Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 200.41B | 199.13B | 176.81B | 171.34B | 156.59B | 138.64B |
| Gross Profit | 46.43B | 50.90B | 49.24B | 47.01B | 39.95B | 35.99B |
| EBITDA | 8.92B | 9.66B | 10.48B | 10.49B | 10.13B | 10.03B |
| Net Income | 5.24B | 5.66B | 5.98B | 5.99B | 5.89B | 6.10B |
Balance Sheet | ||||||
| Total Assets | 125.83B | 121.49B | 116.89B | 108.93B | 102.75B | 97.46B |
| Cash, Cash Equivalents and Short-Term Investments | 35.56B | 9.49B | 8.29B | 6.53B | 7.39B | 4.88B |
| Total Debt | 31.84B | 33.23B | 32.70B | 26.65B | 25.80B | 24.89B |
| Total Liabilities | 81.78B | 77.47B | 75.46B | 69.52B | 66.42B | 61.33B |
| Stockholders Equity | 43.90B | 43.88B | 41.31B | 39.31B | 36.24B | 36.06B |
Cash Flow | ||||||
| Free Cash Flow | 6.45B | 3.17B | 4.55B | 6.76B | 7.25B | 7.28B |
| Operating Cash Flow | 7.61B | 4.29B | 5.81B | 8.06B | 8.40B | 8.36B |
| Investing Cash Flow | -3.09B | -1.34B | -5.17B | -5.57B | -4.56B | -9.64B |
| Financing Cash Flow | -2.34B | -1.74B | 1.19B | -3.35B | -1.32B | 423.00M |
Elevance Health Technical Analysis
Positive
323.05
Price Trends
308.60
Positive
328.35
Negative
321.61
Positive
Market Momentum
3.95
Negative
63.19
Neutral
73.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELV, the sentiment is Positive. The current price of 323.05 is above the 20-day moving average (MA) of 303.25, above the 50-day MA of 308.60, and above the 200-day MA of 321.61, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 73.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELV.
Elevance Health Risk Analysis
Elevance Health disclosed 28 risk factors in its most recent earnings report. Elevance Health reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Elevance Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $80.76B | 9.15 | 11.95% | 1.99% | 9.44% | -8.53% | |
73 Outperform | $336.52B | 9.80 | 12.40% | 2.69% | 9.67% | ― | |
65 Neutral | $26.45B | 2.61 | -28.72% | ― | 17.02% | -294.77% | |
63 Neutral | $28.57B | 4.40 | 6.19% | 1.38% | 14.08% | -33.82% | |
54 Neutral | $10.19B | 121.40 | 4.44% | ― | 7.72% | -83.64% | |
53 Neutral | $105.10B | 8.56 | 2.34% | 3.41% | 7.89% | -61.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ELV
Elevance Health
371.90
-36.80
-9.00%
CNC
Centene
53.56
-9.36
-14.88%
CVS
CVS Health
82.01
17.59
27.30%
HUM
Humana
237.96
-11.22
-4.50%
MOH
Molina Healthcare
195.53
-131.49
-40.21%
UNH
UnitedHealth
370.75
-9.58
-2.52%
Elevance Health Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Elevance Health Reaffirms 2026 Earnings Guidance Amid CMS Risks
Neutral
Mar 10, 2026
Officers of Elevance Health said they will meet investors and analysts over the coming week and reaffirmed their 2026 adjusted shareholders’ earnings guidance of at least $25.50 per diluted share, alongside a 2026 benefit expense ratio targe...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Elevance Health Restructures Leadership, Reaffirms 2026 Guidance
Positive
Feb 26, 2026
On February 26, 2026, Elevance Health announced a restructuring of its leadership to simplify decision-making across its Carelon healthcare services arm and Health Benefits businesses. Executive Vice President and CFO Mark Kaye will take on oversi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.