Barlow Slashes Elevance Health Stake 88.8% as Vanguard, Sanders Boost Holdings
Barlow Wealth Partners reduced its Elevance Health position by 88.8%, selling 17,461 shares to hold 2,209 shares valued at $763,000 at quarter-end. Meanwhile, Vanguard increased its stake by 3.2% to 22.9 million shares and Sanders Capital added 1.15 million shares, indicating mixed institutional sentiment.
1. Strong Fourth-Quarter Revenue Growth
Elevance Health reported operating revenue of $49.3 billion for the fourth quarter of 2025, up 10 percent year-over-year, driven by higher premium yields in its Health Benefits segment, contributions from recent acquisitions, and growth in Medicare Advantage membership. Full-year 2025 operating revenue reached $197.6 billion, a 13 percent increase over 2024, reflecting disciplined pricing actions and ongoing expansion of its diversified platform.
2. Operating and Adjusted Margins Under Pressure
The company delivered a GAAP operating gain of $300 million in Q4 2025 versus $700 million a year earlier, yielding a 0.6 percent operating margin compared to 1.5 percent in the prior period. Adjusted operating gain declined to $400 million from $800 million, while adjusted margin narrowed from 1.9 percent to 0.8 percent, driven primarily by elevated medical cost trends in Affordable Care Act products and seasonal Medicare Part D headwinds triggered by Inflation Reduction Act changes.
3. Segment Dynamics: Health Benefits and Carelon
Within Health Benefits, Q4 operating revenue rose 11 percent to $41.8 billion, but the segment recorded an adjusted operating loss of $200 million versus a gain of $200 million a year ago, reflecting higher benefit expense ratio of 93.5 percent. Medical membership stood at 45.2 million, down 1 percent year-over-year, largely due to Medicaid attrition. Carelon delivered 27 percent revenue growth to $18.7 billion and sustained an adjusted operating gain of $600 million, while full-year Carelon revenue climbed 33 percent to $71.7 billion on strong pharmacy services and risk-based solutions expansion.
4. Capital Return and 2026 Outlook
In Q4, the company repurchased 1.4 million shares for $471 million and paid dividends totaling $377 million, with $6.7 billion of repurchase authorization remaining. For fiscal 2026, Elevance Health forecasts profit below consensus, attributing the soft outlook to persistent elevated medical costs and investments in affordability initiatives. Management expects to return to at least 12 percent adjusted EPS growth by 2027 through pricing discipline and targeted technology and care integration investments.