Elevance Health Inc. (NYSE:ELV) shares fell after the health insurer reported mixed fourth-quarter 2025 earnings and bleak fiscal 2026 guidance. The stock has recovered most of its loss from the premarket session
Earnings Snapshot
The company reported fourth-quarter 2025 revenues of $49.3 billion, up 10% year over year, below the consensus of $49.82 billion. Operating revenue was $197.6 billion in 2025, up 13%.
The increase in revenue for the quarter and year was driven by higher
premium yields in the Health Benefits segment, contributions from acquisitions, and growth in Medicare Advantage membership, partially offset by membership attrition in the Medicaid business.
Elevance Health reported adjusted earnings of $3.33 per share, beating the consensus of $3.10.
The benefit expense ratio was 93.5% in the fourth quarter, an increase of 110 basis points, reflecting higher medical cost trend primarily in Affordable Care Act health plans and heightened Medicare Part D seasonality driven by Inflation Reduction Act changes.
For the year, the benefit expense ratio was 90%, an increase of 150 basis points year over year, driven by elevated medical cost trends.
The operating expense ratio was 11% in the fourth quarter and …