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Elevance Health
(NYSE:ELV)
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Rating:68Neutral
Price Target:
$425.00
▲(12.53% Upside)
Action:Downgraded
Date:07/16/26
The score is driven primarily by solid overall financial performance with strong revenue growth but notable margin compression and less consistent cash-flow trends. Earnings-call guidance was constructive (raised EPS and operating cash flow outlook), partially offset by ongoing Medicaid and utilization headwinds plus one-time nature of Q2 favorability. Technicals are mixed with weaker near-term trend, while valuation is reasonable with a modest dividend yield.
Positive Factors
Scale & diversified membership
A 44.9 million member base across commercial, Medicare and Medicaid provides durable revenue scale and diversification. Scale supports negotiating leverage with providers, spreads fixed costs, sustains ASO fee economics, and enables cross-selling of Carelon services to drive long-term stable revenue.
Negative Factors
Margin compression
Sustained margin compression reduces earnings resilience: lower net margins reflect elevated medical utilization and cost pressures. Over time this makes profitability more sensitive to utilization and pricing, limiting ability to absorb shocks and requiring consistent execution to restore prior return levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & diversified membership
A 44.9 million member base across commercial, Medicare and Medicaid provides durable revenue scale and diversification. Scale supports negotiating leverage with providers, spreads fixed costs, sustains ASO fee economics, and enables cross-selling of Carelon services to drive long-term stable revenue.
Read all positive factors
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 (ELV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.51B
Dividend Yield1.83%
Average Volume (3M)1.64M
Price to Earnings (P/E)16.7
Beta (1Y)0.42
Revenue Growth6.27%
EPS Growth-4.37%
CountryUS
Employees97,100
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)22.50
Shares Outstanding216,869,300
10 Day Avg. Volume1,863,853
30 Day Avg. Volume1,644,011
Financial Highlights & Ratios
PEG Ratio-5.70
Price to Book (P/B)1.77
Price to Sales (P/S)0.39
P/FCF Ratio24.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$449.33Price Target Upside18.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)27.13
Revenue Forecast (FY)$196.96B
Elevance Health Business Overview & Revenue Model
Company Description
Operating as a major health benefits organization, Elevance Health Inc. commits to guiding consumers, families, and communities across their entire health and wellness path. It facilitates access to vital care, assistance, and tools designed to en...
How the Company Makes Money
Elevance Health makes money primarily by operating health plans and related healthcare services. (1) Health Benefits segment: The company earns premium revenue from fully insured health plans across employer, individual, Medicare, and Medicaid mar...
Elevance Health Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call was broadly constructive: management reported a quarter that beat expectations, raised 2026 EPS guidance, increased operating cash flow guidance, and highlighted scalable growth drivers (Medicare Advantage improvement, Carelon expansion, and technology-enabled cost management). Notable headwinds remain in Medicaid (projected -1.75% margin), concentrated utilization trends (behavioral health, specialty pharmacy, outpatient surgery, ED), planned market exits, and near-term investments that keep expense ratios elevated. Management emphasized prudence and one-time uses of the Q2 benefit while articulating confidence in returning to at least 12% adjusted EPS growth in 2027 based on diversified levers across the enterprise.Positive Updates
Earnings Beat and Raised Guidance
Reported Q2 adjusted diluted EPS of $7.45, exceeding outlook; raised full-year 2026 adjusted diluted EPS guidance to at least $27 (modeling baseline at $26) and reaffirmed objective to return to at least 12% adjusted EPS growth in 2027. Recorded a $0.80 per share net below-the-line benefit in Q2 to fund one-time, targeted investments.
Negative Updates
Medicaid Operating Margin Pressure
Medicaid remains a drag with a full-year 2026 adjusted operating margin outlook of approximately -1.75%. Management views 2026 as the trough year but continues to be prudent given a dynamic operating environment.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Beat and Raised Guidance
Reported Q2 adjusted diluted EPS of $7.45, exceeding outlook; raised full-year 2026 adjusted diluted EPS guidance to at least $27 (modeling baseline at $26) and reaffirmed objective to return to at least 12% adjusted EPS growth in 2027. Recorded a $0.80 per share net below-the-line benefit in Q2 to fund one-time, targeted investments.
Read all positive updates
Company Guidance
Management raised 2026 adjusted diluted EPS guidance to at least $27 (Q2 adjusted EPS was $7.45) and now views at least $26 as the appropriate modeling baseline, with confidence in returning to at least 12% adjusted EPS growth in 2027 off the ending‑2026 baseline and an expectation that Q3 will represent roughly 17% of full‑year EPS; they will deploy a non‑recurring $0.80 per‑share below‑the‑line benefit (primarily investment valuation adjustments) to fund one‑time investments (in addition to ~ $0.75 per‑share of targeted investment spending already embedded in the 2026 outlook), reaffirm a full‑year Medicaid operating margin of approximately ‑1.75% while expecting Medicare Advantage to reach at least a 2% operating margin this year, expect to end 2026 with at least 1.0 million individual ACA members, and highlighted key operating metrics from Q2: 44.9 million medical members, $49.8 billion of operating revenue (+0.8% YoY), $1.9 billion of operating cash flow (and raised full‑year operating cash flow guidance to at least $6.0 billion), 45.4 days in claims payable (up 2.9 days YoY), and an adjusted operating expense ratio expected in the upper half of its full‑year guidance range.Elevance Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 201.11B | 199.13B | 176.81B | 171.34B | 156.59B | 138.64B |
| Gross Profit | 78.34B | 50.90B | 49.24B | 47.01B | 39.95B | 35.99B |
| EBITDA | 8.01B | 9.66B | 10.48B | 10.49B | 10.13B | 10.03B |
| Net Income | 4.96B | 5.66B | 5.98B | 5.99B | 5.89B | 6.10B |
Balance Sheet | ||||||
| Total Assets | 126.44B | 121.49B | 116.89B | 108.93B | 102.75B | 97.46B |
| Cash, Cash Equivalents and Short-Term Investments | 37.51B | 9.49B | 8.29B | 6.53B | 7.39B | 4.88B |
| Total Debt | 31.04B | 33.23B | 32.70B | 26.65B | 25.80B | 24.89B |
| Total Liabilities | 81.42B | 77.47B | 75.46B | 69.52B | 66.42B | 61.33B |
| Stockholders Equity | 44.88B | 43.88B | 41.31B | 39.31B | 36.24B | 36.06B |
Cash Flow | ||||||
| Free Cash Flow | 6.29B | 3.17B | 4.55B | 6.76B | 7.25B | 7.28B |
| Operating Cash Flow | 7.46B | 4.29B | 5.81B | 8.06B | 8.40B | 8.36B |
| Investing Cash Flow | -2.24B | -1.34B | -5.17B | -5.57B | -4.56B | -9.64B |
| Financing Cash Flow | -3.53B | -1.74B | 1.19B | -3.35B | -1.32B | 423.00M |
Elevance Health Technical Analysis
Neutral
377.68
Price Trends
395.73
Negative
364.61
Positive
349.02
Positive
Market Momentum
-5.62
Positive
44.00
Neutral
52.03
Neutral
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 377.68 is below the 20-day moving average (MA) of 390.79, below the 50-day MA of 395.73, and above the 200-day MA of 349.02, indicating a neutral trend. The MACD of -5.62 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 52.03 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $376.34B | 26.65 | 14.40% | 2.13% | 6.46% | ― | |
68 Neutral | $81.51B | 16.70 | 11.24% | 1.82% | 6.27% | -4.37% | |
63 Neutral | $43.69B | 34.15 | 6.91% | 0.91% | 18.33% | -18.53% | |
62 Neutral | $133.25B | 45.21 | 3.87% | 2.47% | 7.68% | -45.09% | |
60 Neutral | $30.74B | -5.98 | -24.03% | ― | 13.89% | -356.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $10.21B | 1,222.62 | -0.17% | ― | 2.55% | -100.90% |
* Healthcare Sector Average
ELV
Elevance Health
391.24
120.63
44.57%
CNC
Centene
66.99
41.78
165.73%
CVS
CVS Health
99.12
37.56
61.00%
HUM
Humana
363.82
110.85
43.82%
MOH
Molina Healthcare
195.14
42.83
28.12%
UNH
UnitedHealth
412.75
173.38
72.43%
Elevance Health Corporate Events
Business Operations and StrategyFinancial Disclosures
Elevance Health Reaffirms 2026 Earnings and Cost Targets
Positive
Jun 10, 2026
Elevance Health told investors and analysts this week that it is reaffirming its full-year 2026 shareholders’ earnings guidance of at least $19.85 per diluted share, which includes about $6.90 per share of net unfavorable items, and at least...
Executive/Board ChangesShareholder Meetings
Elevance Health Shareholders Back Directors, Pay and Auditor
Positive
May 13, 2026
On May 13, 2026, Elevance Health, Inc. shareholders held their annual meeting, where they elected three directors—Gail K. Boudreaux, Robert L. Dixon, Jr., and Deanna D. Strable—to new three-year terms ending in 2029. The meeting was co...
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.