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NEW YORK -On Tuesday, Elevance Health Inc. (NYSE:ELV) reported first quarter earnings that surpassed analyst estimates, driven by strong revenue growth across its business segments.
The health insurer’s stock rose 1.04% in premarket trading following the results.
The company posted adjusted earnings per share of $11.97 for Q1 2025, beating the consensus estimate of $11.08. Revenue came in at $48.8 billion, exceeding expectations of $46.27 billion and representing a 15.4% increase YoY.
"In the first quarter, we made measurable progress reimagining the healthcare experience with personalized support, real-time digital solutions, and a whole-health model that improves outcomes and reduces cost," said Gail K. Boudreaux, President and CEO of Elevance Health.
Operating revenue in the Health Benefits segment grew 11.2% to $41.4 billion, driven by higher premium yields and membership growth in Medicare Advantage and Individual ACA plans. The Carelon segment saw revenue surge 63% to $6.5 billion, boosted by recent acquisitions and growth in innovative risk-based capabilities.
The company’s medical loss ratio increased 80 basis points YoY to 86.4%, reflecting higher Medicaid medical cost trends. However, the operating expense ratio improved 70 basis points to 10.9% due to expense leverage from revenue growth and ongoing cost management.
Elevance Health reaffirmed its full-year 2025 adjusted EPS guidance of $34.15 to $34.85, in line with the analyst consensus of $34.19.
The insurer returned $1.3 billion to shareholders in Q1 through share repurchases and dividends. As of March 31, Elevance Health had approximately $8.4 billion remaining under its board-authorized share repurchase program.
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