• Executing with discipline to improve affordability and elevate the member experience
• 3Q 2025 operating revenue of $50.1 billion, up 12.0% from 3Q 2024
• 3Q 2025 diluted EPS¹ of $5.32; adjusted diluted EPS² of $6.03
• Reaffirm FY 2025 benefit expense ratio and adjusted diluted EPS guidance of approximately 90.0% and approximately $30.00, respectively
• Returned $3.3 billion of capital to shareholders year-to-date

Elevance Health, Inc. (NYSE: ELV) reported third quarter 2025 results.

"Our third quarter results were in line with expectations and reflect disciplined execution across Elevance Health. In a dynamic healthcare environment, we’re focused on advancing affordability and elevating the member experience through our growing value-based care partnerships and AI-enabled digital solutions that simplify access and improve outcomes. As we plan for 2026, we remain disciplined in managing what we can control – positioning our businesses for long-term, sustainable growth and value creation for all stakeholders.”

Gail K. Boudreaux

President and Chief Executive Officer

Operating revenue was $50.1 billion in the third quarter of 2025, an increase of $5.4 billion, or 12 percent compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment, recently closed acquisitions, and growth in Medicare Advantage membership, partially offset by ongoing Medicaid membership losses due to eligibility reverifications.

The benefit expense ratio was 91.3 percent, an increase of 180 basis points year over year, reflecting elevated, but expected, cost trend primarily in our Medicare business given pronounced seasonality in Part D benefits associated with changes made in the Inflation Reduction Act. Days in Claims Payable stood at 42.6 days as of September 30, 2025, when adjusted for our acquisition of CareBridge. This represents a decrease of 0.2 days year over year on a comparable basis.

The operating expense ratio was 10.5 percent, an improvement of 130 basis points. The adjusted operating expense ratio was 10.4 percent, an increase of 100 basis points, primarily driven by targeted investments to scale Carelon's capabilities, support and strengthen our workforce, and accelerate technology adoption while maintaining expense discipline.

Cash Flow & Balance Sheet

Operating cash flow was $4.2 billion year-to-date, or 0.8 times GAAP net income, a decrease of $0.9 billion year over year reflecting in part the Provider Settlement Agreement payment for the multi-district BCBSA litigation. As of September 30, 2025, cash and investments at the parent company totaled approximately $2.6 billion.

During the third quarter of 2025, the Company repurchased 2.9 million shares of its common stock for $875 million, at a weighted average price of $303.48, and paid a quarterly dividend of $1.71 per share, representing a distribution of cash totaling $381 million. As of September 30, 2025, the Company had approximately $7.2 billion of Board approved share repurchase authorization remaining.

Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard^®, Medicare, Medicaid, and Federal Employee Program businesses.

Health Benefits segment operating revenue was $42.2 billion in the third quarter of 2025, an increase of $4.0 billion, or 10 percent compared to the prior year quarter, driven primarily by higher premium yields, recently closed acquisitions, and growth in our Medicare Advantage membership, partially offset by ongoing Medicaid reverifications.

Operating gain totaled $0.6 billion, impacted principally by higher medical cost trend and increased investments to support and strengthen our workforce and accelerate technology adoption, partially offset by higher revenue.

Medical membership totaled approximately 45.4 million as of September 30, 2025, driven by lower year over year BlueCard^® and Medicaid membership.

Carelon is comprised of CarelonRx and Carelon Services.

Operating revenue for Carelon was $18.3 billion in the third quarter of 2025, an increase of $4.5 billion, or 33 percent compared to the prior year quarter. This was driven by recent acquisitions in home health and pharmacy services, growth in CarelonRx product revenue, and the scaling of Carelon Services risk-based solutions.

Operating gain for Carelon totaled $0.8 billion, reflecting strong Carelon Services performance offset by targeted platform investments to support growth and the scaling of our pharmacy assets.

Quarterly Dividend

On October 15, 2025, the Audit Committee of the Company's Board of Directors declared a fourth quarter 2025 dividend to shareholders of $1.71 per share. The fourth quarter dividend is payable on December 19, 2025, to shareholders of record at the close of business on December 5, 2025.

About Elevance Health

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve 109 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s third quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on November 21, 2025. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.

Basis of Presentation

1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
2. Operating margin is defined as operating gain divided by operating revenue.

Elevance Health

Earnings Release Financial Schedules and Supplementary Information

Quarter & Year-to-Date Ended September 30, 2025

• Membership and Other Metrics

• Quarterly & Year-to-Date Consolidated Statements of Income

• Condensed Consolidated Balance Sheet

• Condensed Consolidated Statement of Cash Flows

• Supplemental Financial Information - Reportable Segments & Health Benefits Revenue Detail

• Supplemental Financial Information - Reconciliation of Medical Claims Payable

• Reconciliation of Non-GAAP Financial Measures

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard^®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).

Elevance Health

GAAP Reconciliation

(Unaudited)

This document references non-GAAP measures, including “Adjusted Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted Operating Expense” and “Adjusted Operating Expense Ratio,” which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain/Loss,” “Operating Margin” and “Adjusted EPS”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein.