Elevance Health (ELV) Wells Fargo 21st Annual Healthcare Conference summary

Financial performance and outlook

• Reaffirmed 2026 adjusted EPS guidance of at least $27 and full-year benefit expense ratio outlook, with third quarter adjusted EPS tracking ahead of prior expectations due to favorable benefit expense performance and strong execution.

• Committed to at least 12% adjusted EPS growth off the 2026 baseline for 2027, supported by multiple business levers and not reliant on any single segment.

• Disciplined investments in AI and capital deployment are aimed at supporting durable earnings growth into 2027 and beyond.

• Operating cash flow guidance for the year is at least $6 billion, supporting organic investments, M&A, dividends, and share repurchases.

• Near-term capital deployment emphasizes scaling existing capabilities and targeted organic investments to strengthen long-term earnings.

Segment performance and trends

• Medicare Advantage performance remains ahead of expectations, driven by intentional product and geographic actions, improved claims experience, and cost initiatives.

• Medicaid benefit expense ratio and margin performance are tracking slightly ahead of the full-year outlook, supported by recent rate actions and stable membership and acuity.

• Individual ACA business is performing modestly better than expected, with a shift toward Bronze products and slower-than-anticipated cost emergence.

• Employer group cost trend is elevated but consistent with pricing assumptions, with a focus on managing affordability and member experience.

Strategic initiatives and operational priorities

• AI investments are focused on high-volume workflows, with near-term benefits expected in cost trend identification, care actions, and operating efficiency.

• CarelonRx and Carelon Services are expanding through specialty pharmacy, ASO customer growth, and integrated medical-pharmacy management, delivering measurable savings and improved outcomes.

• Risk-based clinical models are being scaled in high-cost areas, with disciplined internal validation before external expansion.

• Carelon's growth is supported by both affiliated and external membership, with a self-reinforcing model that strengthens health benefits and external adoption.