Elevance Health (ELV) investor relations material

Executive summary

• Q2 2025 operating revenue reached $49.4B, up 14.3% year-over-year, driven by higher premium yields, acquisitions, and Medicare Advantage growth, partially offset by Medicaid attrition.

• Adjusted diluted EPS was $8.84, down 14.2% year-over-year; GAAP diluted EPS was $7.72, down 21.6% year-over-year.

• Net income for Q2 2025 was $1.74B, down 24.2% year-over-year, mainly due to higher medical costs and lower Health Benefits margins.

• Returned $2.0B to shareholders year-to-date via dividends and share repurchases.

• Medical membership totaled 45.6M as of June 30, 2025, down 0.3% year-over-year, mainly from Medicaid attrition.

Financial highlights

• Q2 2025 total revenues were $49.4B, up 14.3% year-over-year; six-month revenues reached $98.7B, up 14.1%.

• Benefit expense ratio increased to 88.9%, up 260 bps year-over-year, reflecting higher medical costs in Medicaid and ACA plans.

• Operating expense ratio improved to 10.1% (adjusted: 10.0%), down 140–160 bps year-over-year.

• Operating margin was 4.9%, down from 6.4% year-over-year; Health Benefits margin fell to 3.8% from 5.8%.

• Operating cash flow for Q2 2025 was $2.1B; year-to-date $3.1B, up $0.6B year-over-year.

Outlook and guidance

• FY 2025 adjusted EPS guidance revised to ~$30.00 due to persistent elevated medical cost trends in ACA and slower Medicaid rate alignment.

• Full-year benefit expense ratio expected at ~90% as elevated trends persist.

• More earnings expected in Q3 than Q4; Q4 outlook includes utilization pull-forward in ACA and a discrete non-operating tax benefit.

• 2026 expected to see further market reset as enhanced subsidies expire and risk pool changes; $183M revenue impact expected from lower Medicare Advantage Star Ratings.

• Operating cash flow guidance for 2025 updated to ~$6.0B.