Elevance Health, Inc. (ELV) reported fourth-quarter and full-year 2025 results and also issued its initial 2026 outlook.
Fourth Quarter 2025 Results
Operating revenue for the fourth quarter of 2025 rose to $ 49.3 billion, an increase of 10% from the $45.0 billion reported in Q4 2024. The growth was driven by higher premium yields in the Health Benefits segment, contributions from acquisitions, and continued expansion in Medicare Advantage membership.
Diluted EPS for Q4 2025 came in at $2.47, compared to $1.81 in Q4 2024. Adjusted EPS was $3.33, up from $3.23 a year earlier.
The benefit expense ratio increased to 93.5%, up 110 basis points from Q4 2024, driven by higher medical cost trends in Affordable Care Act plans and Medicare Part D dynamics. Operating expense ratio for the quarter was 11.0%, slightly higher than the prior year from 10.6%.
Full Year 2025 Results
Operating revenue for full-year 2025 reached $197.6 billion, up 13% from $175.2 billion in 2024.
Full-year diluted EPS was $25.21, compared to $25.68 in 2024. Adjusted diluted EPS declined to $30.29, from $33.04 in the prior year.
The full-year benefit expense ratio increased 150 basis points to 90.0%, while the operating expense ratio held steady at 10.6%.
Medical membership totaled about 45.2 million as of December 31, 2025, a decrease of 1% year over year, driven by attrition in Medicaid business
Outlook for 2026
For fiscal 2026, Elevance Health expects:
•GAAP diluted EPS: at least $22.30, compared to $25.21 from the previous year.
•Adjusted diluted EPS: at least $25.50 compared to $30.29 from the previous year.
The company expects total operating revenue to decline by a low single-digit percentage in full-year 2026, compared with $197.6 billion reported in 2025.
Looking further ahead, the management reaffirmed its long-term earnings algorithm and noted that pricing discipline and targeted investments are expected to support a return to at least 12% adjusted EPS growth in 2027.
The company also declared a first-quarter 2026 dividend of $1.72 per share, payable March 25, 2026.
ELV has traded between $273.71 and $458.75 over the past year. The stock closed yesterday's trading at $322.92, down 14.33% and fell further in the pre-market to $299.99, down 7.12%.
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