Guidance
Raising 2026 EPS guidance to at least $27
Guidance tone
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AI
Demand
ELV
FY2026 Q2
IMPROVING
Elevance Health, Inc. earnings call
Buzzberg read
Raising 2026 EPS guidance to at least $27
Elevance Health reported Q2 2026 adjusted EPS of $7.45, beating its outlook, and raised full-year EPS guidance to at least $27. The company highlighted broad-based strength in Medicare Advantage and individual ACA, disciplined Medicaid management, and planned use of a one-time below-the-line benefit to fund long-term cost management investments. Management expressed confidence in returning to at least 12% adjusted EPS growth in 2027. Q2 adjusted EPS $7.45 exceeded outlook, driven by favorable benefit expense in MA and ACA.
Buzzberg read Raising 2026 EPS guidance to at least $27 Elevance Health reported Q2 2026 adjusted EPS of $7.45, beating its outlook, and raised full-year EPS guidance to at least $27. The company highlighted broad-based strength in Medicare Advantage and individual ACA, disciplined Medicaid management, and planned use of a one-time below-the-line benefit to fund long-term cost management investments. Management expressed confidence in returning to at least 12% adjusted EPS growth in 2027. Q2 adjusted EPS $7.45 exceeded outlook, driven by favorable benefit expense in MA and ACA. Read full analysisCollapse analysis
Elevance Health reported Q2 2026 adjusted EPS of $7.45, beating its outlook, and raised full-year EPS guidance to at least $27. The company highlighted broad-based strength in Medicare Advantage and individual ACA, disciplined Medicaid management, and planned use of a one-time below-the-line benefit to fund long-term cost management investments. Management expressed confidence in returning to at least 12% adjusted EPS growth in 2027. Q2 adjusted EPS $7.45 exceeded outlook, driven by favorable benefit expense in MA and ACA.
- Full-year EPS guidance raised to at least $27 from prior at least $26; unchanged EPS baseline of $26.
- Medicaid performance in line with expectations; 2026 seen as trough with margin improvement expected as rates align.
- Company plans to exit select Medicaid markets where sustainable returns are not possible.
Revenue
$50.474B
+1% QoQ
EPS
$7.45
-41% QoQ
Gross margin
89.12%
reported
Op margin
4.09%
reported
What changed this quarter
Margins
Medicaid margin outlook unchanged at -1.75%
Reported gross margin was 89.12%, reinforcing the quarter's better-than-guided profitability.
Risk
Exiting DC Medicaid and additional markets
Full-year EPS guidance raised to at least $27 from prior at least $26; unchanged EPS baseline of $26.
Margins
Medicare Advantage on track for ≥2% margin
Reported gross margin was 89.12%, reinforcing the quarter's better-than-guided profitability.
AI, capex & demand read
Platform & monetization
Gail Boudreaux mentioned that 'Carillon and our AI enabled capabilities are becoming more meaningful contributors' and later noted investments in 'analytics and AI-enabled tools that, again, allow us to identify those pressures earlier' as part of medical cost management.
Bookings & conversion
Elevance Health raised guidance and expressed confidence in sustained earnings growth, driven by disciplined execution across diversified lines of business and targeted investments in cost management capabilities.
Tone · confident
Management raised full-year EPS guidance and reaffirmed a return to 12% growth in 2027, citing broad-based execution, but maintained a prudent stance on Medicaid and second-half trends.
Forward guidance
ImprovingGuidance tone · was IN LINE last Q
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $27.00 | $27.00 | RAISED |
Guidance credibility
1 / 1met or beat
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2025 Q3 | EPS | FY2025 | $30.00 | $30.29 | Met / beat |