$ELV · Elevance Health, Inc.
Elevance Health filed its 10-Q for Q3 FY2026, reporting diluted EPS of $6.27 on total revenues of $51.43B (+1.4% YoY). Net investment income surged 65.9% to $1.037B, driving the EPS beat, while Health Benefits operating gain fell 27.5% to $436M with margin compressing to 1.0%. Nine-month shareholders' net income declined 10.2% to $4.59B.
- Q3 diluted EPS of $6.27 vs $5.32 a year ago, a 17.9% increase driven by net investment income nearly doubling to $1.037B.
- Health Benefits operating margin fell to 1.0% from 1.4% YoY; operating gain dropped 27.5% to $436M.
- Total operating revenue rose just 0.7% to $50.44B; premiums were essentially flat at $41.7B.
- Operating expense ratio widened 90bp to 11.4%, with operating expenses up 9.1% to $5.75B.
- Nine-month shareholders' net income declined 10.2% to $4.59B despite the strong Q3 beat.
Stock is down 0.25% since filing at $440.45, suggesting the market is focused on the Health Benefits margin compression and 9-month earnings decline rather than the Q3 EPS beat.
The Q3 headline beat masks deteriorating core insurance profitability: Health Benefits margin at 1.0% is dangerously thin for a $95B managed-care giant.
Elevance's results mirror the managed-care sector's bifurcation: pharmacy/services (CarelonRx +10.8% operating gain) are growing while core insurance margins erode. Peer UNH has shown similar services-led growth dynamics.
Health Benefits segment operating margin compressed to just 1.0% (down 40bp YoY), signaling core insurance profitability pressure. Operating expenses grew 9.1% YoY, outpacing revenue growth of 0.7%, and the effective tax rate jumped to 25.1% from 15.6%.
Get filings like this before the market reacts.
Real-time SEC filing alerts, AI summaries, and a free daily digest — plus portfolio tracking that ties filings to your positions.