Elevance Health Guides $25.50 EPS in 2026; Carelon Margin Upside Could Add $4.33
Elevance Health expects 2026 adjusted EPS of at least $25.50, down from a normalized 2025 baseline of $26.54 after stripping $3.75 nonrecurring gains. Carelon generated $71.7 billion in revenue with a 4.8% operating margin in 2025, and a shift to 6.5% margins could boost EPS by $4.33.
1. 2026 Tactical Earnings Reset
Fiscal 2025 adjusted diluted EPS was $30.29, including $3.75 of nonrecurring tax benefits, yielding a normalized baseline of $26.54. Management projects at least $25.50 EPS for fiscal 2026 as it exits low-quality Medicaid and unprofitable Medicare Advantage geographies, de-risking earnings during regulatory uncertainty.
2. Carelon Platform Margin Opportunity
Carelon services platform posted $71.7 billion in revenue in 2025 with a 4.8% adjusted operating margin. Raising margins to 6.5% could generate about $1.22 billion in incremental operating income, translating to roughly $4.33 in additional EPS across 222 million shares.