Elevance Health (ELV)
NYSE:ELV
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Elevance Health
(NYSE:ELV)
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Rating:64Neutral
Price Target:
$305.00
▼(-3.50% Downside)
Action:ReiteratedDate:02/27/26
ELV scores in the mid-range primarily due to solid underlying financial strength and attractive valuation, partially offset by deteriorating recent cash-flow/margins. The outlook is constrained by earnings-call guidance pointing to 2026 membership and profitability headwinds, and the technical picture remains weak with the stock trading below key moving averages.
Positive Factors
Scale & Diversified Business Model
Elevance's large, diversified membership base and multi-line business (commercial, Medicaid, Medicare, pharmacy, services) create durable premium and fee revenue streams. Scale supports negotiating leverage with providers, cross-selling, and revenue stability versus single-market peers.
Negative Factors
Weakened cash generation
Material decline in operating and free cash flow reduces internal funding for share repurchases, M&A, and investments. Lower cash conversion raises quality-of-earnings concerns, leaving less cushion for claim variability and potentially forcing tougher capital allocation choices over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Diversified Business Model
Elevance's large, diversified membership base and multi-line business (commercial, Medicaid, Medicare, pharmacy, services) create durable premium and fee revenue streams. Scale supports negotiating leverage with providers, cross-selling, and revenue stability versus single-market peers.
Read all positive factors
Elevance Health (ELV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.76B
Dividend Yield1.99%
Average Volume (3M)2.04M
Price to Earnings (P/E)13.7
Beta (1Y)0.35
Revenue Growth11.96%
EPS Growth-11.11%
CountryUS
Employees104,200
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)3.33
Shares Outstanding220,704,670
10 Day Avg. Volume1,438,696
30 Day Avg. Volume2,041,381
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 Cap1.35
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda9.62
Forecast
1Y Price Target
$377.82Price Target Upside19.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)25.89
Revenue Forecast (FY)$193.01B
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:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Neutral
The call balanced significant near-term challenges—notably membership declines (Medicaid and Medicare), elevated cost trends, a negative Medicaid margin expectation for 2026, and a lower 2026 EPS baseline versus 2025—with several constructive positives: strong Q4 revenue, Carillon growth and external demand, disciplined pricing and portfolio repositioning, targeted investments in analytics and care management, healthy ASO sales momentum, and a clear plan to return to at least 12% EPS growth in 2027. Management emphasized prudent assumptions and execution, but material near-term headwinds and margin recalibrations reduce upside in 2026.Positive Updates
Strong Q4 and FY2025 Adjusted EPS
Reported adjusted diluted EPS of $3.33 in Q4 and $30.29 for full-year 2025; FY2025 results included approximately $3.75 per share of favorable nonrecurring items.
Negative Updates
Membership Declines (Medicaid, Medicare, Overall)
Ended 2025 with 45.2 million members, down approximately 500,000 year-over-year (~1%); guidance expects Medicaid membership to decline ~750,000 in 2026 (same-store) and Medicare Advantage membership to decline in the high-teens percentage range in 2026 due to deliberate portfolio actions.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and FY2025 Adjusted EPS
Reported adjusted diluted EPS of $3.33 in Q4 and $30.29 for full-year 2025; FY2025 results included approximately $3.75 per share of favorable nonrecurring items.
Read all positive updates
Company Guidance
Elevance guided to at least $25.50 adjusted diluted EPS for 2026 (after FY2025 adjusted EPS of $30.29 and Q4 EPS of $3.33, noting $3.75 per share of favorable nonrecurring items in 2025), and said revenue should decline low-single-digits while risk-based membership falls in the low double-digit percent range (Medicaid membership down ~750k, total membership ended 2025 at 45.2M, down ~500k); key 2026 financial pillars include a consolidated medical loss ratio of 90.2% ±50 bps, an adjusted operating expense ratio of 10.6% ±50 bps, operating cash flow of at least $5.5B, days in claims payable in the low‑40s (41.3 days in Q4), and ~$2.3B planned for share repurchases; line‑of‑business expectations call for Medicaid operating margin ≈ -1.75% with mid‑single‑digit cost trend, Medicare Advantage membership down high‑teens with Medicare operating margin improving to at least 2%, ACA year‑end membership of at least 900k, Carillon low‑single‑digit operating gain growth amid external revenue strength, a long‑term enterprise margin target of 5–6% and mid‑single‑digit targets for Health Benefits/CarillonRx, and a reaffirmed long‑term EPS growth algorithm of at least 12% with about two‑thirds of 2026 EPS expected in H1 (65% of that in Q1).Elevance Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 199.13B | 176.81B | 171.34B | 156.59B | 138.64B |
| Gross Profit | 50.90B | 49.24B | 47.01B | 39.95B | 35.99B |
| EBITDA | 9.66B | 10.48B | 10.49B | 10.13B | 10.03B |
| Net Income | 5.66B | 5.98B | 5.99B | 5.89B | 6.10B |
Balance Sheet | |||||
| Total Assets | 121.49B | 116.89B | 108.93B | 102.75B | 97.46B |
| Cash, Cash Equivalents and Short-Term Investments | 9.49B | 8.29B | 6.53B | 7.39B | 4.88B |
| Total Debt | 33.23B | 32.70B | 26.65B | 25.80B | 24.89B |
| Total Liabilities | 77.47B | 75.46B | 69.52B | 66.42B | 61.33B |
| Stockholders Equity | 43.88B | 41.31B | 39.31B | 36.24B | 36.06B |
Cash Flow | |||||
| Free Cash Flow | 3.17B | 4.55B | 6.76B | 7.25B | 7.28B |
| Operating Cash Flow | 4.29B | 5.81B | 8.06B | 8.40B | 8.36B |
| Investing Cash Flow | -1.34B | -5.17B | -5.57B | -4.56B | -9.64B |
| Financing Cash Flow | -1.74B | 1.19B | -3.35B | -1.32B | 423.00M |
Elevance Health Technical Analysis
Neutral
316.07
Price Trends
310.50
Positive
328.43
Negative
322.86
Negative
Market Momentum
2.13
Negative
59.69
Neutral
86.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELV, the sentiment is Neutral. The current price of 316.07 is above the 20-day moving average (MA) of 298.78, above the 50-day MA of 310.50, and below the 200-day MA of 322.86, indicating a neutral trend. The MACD of 2.13 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 86.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $68.76B | 13.73 | 13.01% | 1.99% | 11.96% | -11.11% | |
63 Neutral | $276.23B | 24.92 | 12.70% | 2.69% | 10.48% | 24.25% | |
54 Neutral | $23.07B | 25.97 | 6.59% | 1.38% | 9.87% | -5.58% | |
53 Neutral | $100.92B | 56.87 | 2.34% | 3.41% | 6.71% | -90.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $18.34B | -3.03 | -27.74% | ― | 14.92% | -286.72% | |
49 Neutral | $7.60B | 18.68 | 10.99% | ― | 13.71% | -18.02% |
* Healthcare Sector Average
ELV
Elevance Health
316.07
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-26.26%
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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.