Elevance Health Reports Strong Q3 2025 Results, Reaffirms Full-Year Outlook

Elevance Health, a major player in the health insurance industry, has reported robust financial results for the third quarter of 2025, surpassing Wall Street expectations and setting a positive tone for the insurance sector's earnings season.

Q3 Financial Highlights

Elevance Health posted a profit of $1.2 billion for the third quarter, marking a significant 17% increase from the $1 billion reported in Q3 2024. The company's revenues also saw substantial growth, reaching $50.7 billion, up 12.4% from $45.1 billion in the prior-year quarter.

These results exceeded analyst forecasts, as per Zacks Investment Research, leading to a rise in Elevance Health's shares during premarket trading. The strong performance also had a positive impact on the stock prices of some of the company's competitors.

Segment Performance and Key Drivers

The health benefits unit of Elevance Health reported operating revenue of $42.2 billion in Q3. This growth was attributed to higher premium yields, recent acquisitions, and expansion in the Medicare Advantage segment. However, the company's medical loss ratio stood at 91.3%, primarily due to ongoing cost trends in Medicare, with particular emphasis on Part D benefits affected by changes in the Inflation Reduction Act.

Elevance Health's Carelon division demonstrated impressive growth, with operating revenue increasing by 33% year-over-year to $18.3 billion. This surge was driven by acquisitions in the home health and pharmacy sectors, as well as growth in product revenue at CarelonRx.

Membership and Strategic Focus

As of Q3, Elevance Health reported 45.4 million members, a slight decrease year-over-year. The company attributed this decline to lower Medicaid and Blue Card membership compared to the same quarter last year.

CEO Gail Boudreaux emphasized the company's strategic focus, stating, "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."

Outlook and Future Plans

Despite some challenges, Elevance Health has reaffirmed its 2025 outlook. The company expects to achieve $30 in earnings per share and projects its full-year medical loss ratio to be approximately 90%.

Looking ahead to 2026, Boudreaux highlighted the company's commitment to disciplined management and positioning for long-term growth, stating, "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."