Elevance Health shares jump as Q3 results beat expectations

Investing.com -- Elevance Health Inc. (NYSE: ELV) reported third-quarter earnings that significantly exceeded analyst expectations, sending shares up 4.1% premarket as investors responded positively to the healthcare giant’s performance.

The health benefits provider posted adjusted earnings of $6.03 per share for the third quarter, handily beating the analyst consensus of $4.95. Revenue came in at $50.1 billion, surpassing the $49.34 billion estimate and representing a 12% increase compared to the same quarter last year.

"Our third quarter results were in line with expectations and reflect disciplined execution across Elevance Health," said Gail K. Boudreaux, President and Chief Executive Officer. "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."

The company’s benefit expense ratio was 91.3%, an increase of 180 basis points year over year, reflecting elevated but expected cost trends primarily in its Medicare business. This was attributed to pronounced seasonality in Part D benefits associated with changes made in the Inflation Reduction Act.

Elevance Health maintained its full-year 2025 guidance, reaffirming a benefit expense ratio of approximately 90.0% and adjusted diluted EPS of approximately $30.00.

The operating expense ratio improved to 10.5%, down 130 basis points from the previous year. However, the adjusted operating expense ratio increased to 10.4%, up 100 basis points, primarily due to targeted investments to scale Carelon’s capabilities and accelerate technology adoption.

During the quarter, Elevance Health repurchased 2.9 million shares for $875 million and paid a quarterly dividend of $1.71 per share. The company also declared a fourth-quarter dividend of $1.71 per share, payable on December 19, 2025.