Elevance Health stock enters 2027 with Medicaid recovery in focus
Published on 11/12/2026 at 13:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSWhat investors will watch next
- Elevance raised its 2026 adjusted earnings and operating cash flow outlook after stronger third-quarter execution.
- Management targets at least 12 percent adjusted earnings growth in 2027 from a higher earnings baseline.
- Membership trends, medical costs and Carelon profitability remain central to the insurer's investment case.
Elevance Health reported stronger-than-expected third-quarter results on October 21, 2026, and raised its full-year outlook. The health insurer's operating revenue rose 0.7 percent year over year to 50.4 billion US dollars, while adjusted diluted earnings per share reached 6.99 US dollars. The figures come from the company's October 21 earnings release.
Higher earnings baseline for 2027
Elevance raised its 2026 adjusted diluted earnings guidance to at least 29.00 US dollars per share from at least 27.00 US dollars previously. The company also lifted its GAAP diluted earnings guidance to at least 22.00 US dollars per share and raised operating cash flow guidance to at least 6.5 billion US dollars.
Chief Executive Gail Boudreaux said the company expects at least 12 percent adjusted diluted earnings-per-share growth in 2027 from a higher 2026 earnings baseline of at least 26.75 US dollars. That baseline excludes non-recurring net investment income, other non-operating items and targeted one-time investments, so it is not directly interchangeable with the 29.00 US dollar adjusted guidance figure.
Medical costs remain a key signal
The benefit expense ratio improved 70 basis points from a year earlier to 90.6 percent. Elevance attributed the improvement to better performance in Medicare Advantage and Individual ACA, while the company continued to face lower membership in Medicaid, Medicare Advantage and employer risk-based businesses.
Total medical membership stood at 44.9 million at September 30, 2026, down 487,000 from a year earlier. Commercial fee-based membership partly offset the decline. For investors, the combination of membership, premium yields and medical-cost control will be important in judging whether the higher earnings baseline can support the 2027 growth target.
Carelon adds operating momentum
Carelon generated 19.3 billion US dollars of third-quarter operating revenue, up 5 percent from the prior-year quarter. Operating gain increased 17 percent to 0.9 billion US dollars, supported by Carelon Services risk-based solutions and improved specialty-pharmacy profitability. Health Benefits revenue rose 3 percent to 43.4 billion US dollars, although operating gain declined year over year as Elevance invested in its long-term operating model.
Elevance Health stock traded at 387.55 euros on Lang & Schwarz at 13:31 CET on Thursday, November 12, 2026.
Elevance Health at a glance
- Company: Elevance Health Inc.
- ISIN: US0367521038
- Ticker: ELV
- Home exchange: New York Stock Exchange
- Latest quote: 387.55 euros on Lang & Schwarz, Thursday, November 12, 2026, 13:31 CET
- Sector: Healthcare
- Industry: Medical - Healthcare Plans
- Chief executive: Gail Koziara Boudreaux
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