Elevance Health (ELV) Q1 2026 (USD): EPS 12.58 (exp. 10.83), Revenue 49.5bln (exp. 48.20bln); raises FY guidance

• 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.