ELV FY2026 Q1 IMPROVING

Elevance Health, Inc. earnings call

Apr 22, 2026 · 04:30 ET Amy DalyFelicia NorwoodGail Boudreau

Buzzberg read

Company raises 2026 EPS guidance to at least $26.75

Elevance Health reported strong Q1 2026 results with adjusted EPS of $12.58, beating expectations, and raised full-year guidance to at least $26.75. Management highlighted progress in cost management, AI investments, and Medicaid/Medicare performance, while providing a disciplined outlook for 2027 growth. Adjusted EPS of $12.58 exceeded expectations, driven by favorable claims experience and ACA seasonality; full-year guide raised to ≥$26.75.

Buzzberg read Company raises 2026 EPS guidance to at least $26.75 Elevance Health reported strong Q1 2026 results with adjusted EPS of $12.58, beating expectations, and raised full-year guidance to at least $26.75. Management highlighted progress in cost management, AI investments, and Medicaid/Medicare performance, while providing a disciplined outlook for 2027 growth. Adjusted EPS of $12.58 exceeded expectations, driven by favorable claims experience and ACA seasonality; full-year guide raised to ≥$26.75. Read full analysisCollapse analysis

Medicaid operating margin guided to ~ -1.75% for 2026; Medicare Advantage on track for at least 2% margin.
Carillon (CareBridge) saw risk-based programs reducing hospital readmissions by 20% and post-acute savings >10%.
AI investments scaling across clinical and administrative workflows; 22M members using virtual assistant.

Revenue $50.181B +1% QoQ

EPS $12.58 reported

Gross margin 18.14% reported

Op margin 5.3% reported

What changed this quarter

Guidance

Company raises 2026 EPS guidance to at least $26.75

Guidance tone

Margins

Medicaid margin expected to be -1.75% for 2026, trough year

Reported gross margin was 18.14%, reinforcing the quarter's better-than-guided profitability.

Regulatory

CMS risk adjustment matter accrued $935 million

Medicaid operating margin guided to ~ -1.75% for 2026; Medicare Advantage on track for at least 2% margin.

Demand

ACA bronze plan shift drives favorable seasonality but defers costs to H2

Management expressed confidence in the business trajectory, raised full-year EPS guidance, and reiterated strong 2027 growth expectations, while acknowledging ongoing challenges in Medicaid and the CMS risk adjustment matter.

AI, capex & demand read

Platform & monetization

Management is embedding and scaling AI across clinical, operational, and administrative workflows, reporting tangible results in member engagement, cost management, and administrative expense reduction. They are investing more than a billion dollars in digital and AI-enabled capabilities, with over 60,000 associates already using AI tools.

Demand

Bookings & conversion

ACA bronze plan shift drives favorable seasonality but defers costs to H2. Management expressed confidence in the business trajectory, raised full-year EPS guidance, and reiterated strong 2027 growth expectations, while acknowledging ongoing challenges in Medicaid and the CMS risk adjustment matter.

Tone · Confident

Forward guidance

ImprovingGuidance tone · was IN LINE last Q

Forward guidance
Metric	Period	Range	Midpoint	Status
EPS	FY2026	$26.75	$26.75	RAISED
Free cash flow	FY2026	$5.5B	$5.5B	GUIDED
Op marginMEDICARE_ADVANTAGE	FY2026	2%	2%	GUIDED
Op marginMEDICAID	FY2026	-1.75%	-1.75%	GUIDED

Guidance credibility

1 / 1met or beat

Guidance credibility
Issued	Metric	Target	Guide	Actual	Outcome
FY2025 Q3	EPS	FY2025	$30.00	$30.29	Met / beat