Elevance Health Exceeds $49.5B Expectations in Q1

INDIANAPOLIS—Elevance Health, Inc. reported first quarter 2026 results ahead of expectations.

“Our first quarter results exceeded expectations, reflecting underlying business strength and improving claims experience,” Elevance Health said in a released statement. “We are raising our full-year adjusted EPS guidance, supported by greater visibility into the balance of the year. Our actions are driving more consistent performance and position Elevance Health for continued improvement over time.”

Operating revenue was $49.5 billion in the first quarter of 2026, an increase of $0.7 billion, or 1.5%, compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment and growth in CarelonRx product revenue, partially offset by anticipated declines in our Medicare Advantage, Medicaid and Employer Group risk membership.

The benefit expense ratio was 86.8%, an increase of 40 basis points, reflecting expected elevated medical cost trend in Elevance’s Medicaid business, partially offset by improved performance in Medicare. Days in claims payable stood at 46.6 days as of March 31, 2026, an increase of 5.3 days from Dec. 31, 2025 and an increase of 3.8 days year over year.

The operating expense ratio of 12.8% included a $935 million accrual representing Elevance’s current best estimate of the identified potential exposure related to the CMS notice. The company also recorded a charge of $129 million related to business optimization.

The adjusted operating expense ratio was 10.5%, a decrease of 20 basis points, driven by expense management. 

Operating cash flow of $4.3 billion in the quarter increased $3.3 billion year over year. As of March 31, 2026, cash and investments at the parent company totaled approximately $2.2 billion.

During the first quarter of 2026, the company repurchased 3.7 million shares of its common stock for $1.1 billion, at a weighted average price of $304.68, and paid a quarterly dividend of $1.72 per share, representing a distribution of cash totaling $376 million. As of March 31, 2026, the company had approximately $5.6 billion of board approved share repurchase authorization remaining.