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Elevance Health, Inc., formerly known as Anthem, Inc., disclosed its preliminary financial results for the first quarter of 2025 today, indicating a performance in line with the company’s expectations. The healthcare services provider, headquartered in Indianapolis, Indiana, reported a GAAP net income of $9.61 per diluted share for the quarter, which includes about $2.36 per diluted share of net unfavorable items. When adjusted for these items, the net income rises to $11.97 per diluted share. The company, with a substantial market capitalization of $93.86 billion, continues to demonstrate strong financial health, as indicated by InvestingPro analysis, which shows nine analysts have recently revised their earnings expectations upward for the upcoming period.
The company’s first-quarter results reflect medical cost trends that are consistent with its projections, including those in its Medicare Advantage business. Despite elevated cost trends in Medicare Advantage, the company’s experience matches its pricing strategy and prior expectations. Trading at a P/E ratio of 15.93x and generating substantial annual revenue of $176.81 billion, Elevance Health maintains its position as a prominent player in the Healthcare Providers & Services industry.
Elevance Health also confirmed its previously issued guidance for full-year 2025 Medicare Advantage membership, anticipating between 2,200 and 2,250 thousand members. This forecast remains unchanged from the guidance given in the Fourth Quarter 2024 Earnings Release, dated January 23, 2025.
Looking ahead, Elevance Health intends to reaffirm its full-year 2025 guidance for shareholders’ adjusted net income, projecting it to be between $34.15 and $34.85 per diluted share. The company plans to provide more detailed information on its first-quarter financial results and outlook for the rest of the year on April 22, 2025.
This preliminary financial disclosure, based on a press release statement, is forward-looking and subject to various risks and uncertainties. Elevance Health cautions investors not to place undue reliance on these statements, as actual results may differ materially due to factors such as healthcare cost trends, enrollment changes, regulatory impacts, and competitive pressures, among others.
The information provided in this report is not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and should not be incorporated by reference in any filing under the Securities Act of 1933, unless expressly set forth by specific reference in such filings.
Elevance Health’s common stock is traded on the NYSE under the ticker symbol ELV. Based on comprehensive InvestingPro analysis, the stock currently appears undervalued, with analysts maintaining a bullish consensus. Investors seeking detailed insights can access the full Pro Research Report, available exclusively to InvestingPro subscribers, which provides in-depth analysis of Elevance Health’s financial health, market position, and growth prospects.
In other recent news, UnitedHealth Group (NYSE:UNH) revised its earnings outlook downward due to unexpectedly high medical costs in Medicare, impacting health insurance stocks, including Humana (NYSE:HUM), Elevance Health, CVS Health (NYSE:CVS), Cigna (NYSE:CI), and Molina Healthcare (NYSE:MOH). This adjustment from UnitedHealth has led to widespread declines in these companies’ stocks, highlighting the volatile nature of the sector. Meanwhile, Elevance Health has received a Buy rating from Guggenheim, with a price target of $518, citing its strategic use of the Blue Cross Blue Shield brand and its strong market presence as key strengths. Cantor Fitzgerald maintained its Overweight rating on Elevance, adjusting its revenue forecast for fiscal year 2025 to $195.9 billion, while keeping the EPS estimate unchanged.
Additionally, Bernstein analysts raised their price target for Elevance to $585, maintaining an Outperform rating, due to anticipated EPS growth and recovery in government-managed care margins. The Centers for Medicare and Medicaid Services announced a significant increase in Medicare insurer payment rates, set to rise by 5.06% in 2026, which is expected to generate over $25 billion in additional revenue for the industry. This increase, surpassing initial forecasts, reflects a response to rising medical costs and signals robust support for Medicare Advantage. These developments indicate a dynamic period for the healthcare insurance sector, with analysts and investors closely monitoring the evolving landscape.
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