Elevance lifts 2026 profit forecast on lower medical costs, higher premiums
ELV•Elevance Health raised its full-year adjusted profit forecast to at least $29 per share from at least $27, after third-quarter adjusted profit of $6.99 per share beat analysts’ $4.68 estimate. Its medical loss ratio was 90.6%, below analysts’ 91.17% expectation.
1. Forecast raised
Elevance Health raised its full-year adjusted profit forecast to at least $29 per share, compared with its previous outlook of at least $27. Analysts had estimated $27.23 per share. The company earned $6.99 per share on an adjusted basis in the third quarter, above the average analyst estimate of $4.68.
2. Medical costs and membership
Elevance reported a third-quarter medical loss ratio of 90.6%, below analysts’ expectations of 91.17%. It attributed lower costs to better performance in Medicare Advantage and Obamacare plans compared with a year earlier. Medical membership was about 44.9 million as of September 30, down 487,000 from the prior year.
3. 2027 target
The company said it plans to deliver at least 12% growth in 2027 adjusted profit from an earnings baseline of at least $26.75 per share. CEO Gail K. Boudreaux said the quarterly performance reflected “stronger execution across our diversified portfolio and underscore the earnings power of the business.”
