Elevance Health (ELV) Q1 2026 (USD): EPS 12.58 (exp. 10.83), Revenue 49.5bln (exp. 48.20bln); raises FY guidance
Importance
Level 1
- Operating expense ratio of 12.8%, included a USD 935mln accrual representing its current best estimate of the identified potential exposure related to the CMS notice
- Recorded a charge of USD 129mln related to business optimisation
- Benefit expense ratio was 86.8% (+40bps), reflecting expected elevated medical cost trend in Medicaid business, partially offset by improved performance in Medicare.
- Days in Claims Payable stood at 46.6 days (increase of 5.3 days Q/Q, and 3.8 days Y/Y)
GUIDANCE:
- FY26 diluted EPS seen at least 19.85 (Exp. 25.81), including the Company's estimate of the financial impact for the CMS matter
COMMENTARY:
- Exec said results exceeded expectations, reflecting underlying business strength and improving claims experience.
- Raising FY adj. EPS guidance, supported by greater visibility into the balance of the year.
- Actions are driving more consistent performance, positions Elevance for continued improvement over time.