Elevance Health Q1 2026 Financial Results Show Strong Performance
Elevance Health, Inc. (NYSE: ELV) has released its financial results for the first quarter of 2026, outperforming initial forecasts. This strong performance has prompted the company to revise its full-year earnings per share guidance upwards, attributing this optimism to a clearer financial outlook. President and CEO Gail K. Boudreaux highlighted operational consistency as a key factor in this success.
In the first quarter, Elevance Health recorded operating revenue of $49.5 billion, representing a 1.5% increase compared to the same period last year. This growth was mainly driven by improved premium yields within the Health Benefits segment and increased sales of CarelonRx products. However, these gains were slightly offset by expected declines in Medicare Advantage, Medicaid, and Employer Group risk memberships.
The benefit expense ratio rose to 86.8% due to anticipated hikes in Medicaid medical costs, with some mitigation from improved Medicare performance. The time to pay claims saw an uptick, with Days in Claims Payable reaching 46.6 days by March 31, 2026—an increase of over 5 days since the end of 2025.
Operational expenses accounted for 12.8% of revenue, factoring in a $935 million accrual in response to a CMS notice. Additionally, a $129 million charge was incurred from organizational restructuring. Nevertheless, the adjusted operating expense ratio fell slightly to 10.5%, bolstered by effective cost management that supports sustainable growth.
Elevance Health's operating cash flow surged to $4.3 billion—a remarkable year-over-year increase of $3.3 billion—demonstrating financial stability and adept capital management. The company reported available cash and investments totaling $2.2 billion by the end of the quarter. Strategic moves included repurchasing 3.7 million shares for $1.1 billion and disbursing $376 million in dividends.
The Health Benefits segment saw a 2.6% rise in operating revenue to $42.5 billion, driven by enhanced premium yields. Despite this, the segment's operating gain fell by 2.7%, reflecting anticipated Medicaid medical cost increases. Nonetheless, total medical membership climbed to approximately 45.4 million, spurred by growth in commercial fee-based memberships.
The Carelon division, incorporating CarelonRx and Carelon Services, reported a 7.9% revenue increase to $18.0 billion due to expansion in Carelon Services risk-based solutions and CarelonRx products. However, operational gains decreased by 3.8% due to investments in risk-based capabilities and a decline in health plan membership. The Board of Directors declared a second-quarter dividend of $1.72 per share, payable on June 25, 2026, underscoring Elevance Health's commitment to supporting consumers with comprehensive healthcare solutions.