Elevance Health is boosting its outlook for the year as it beat Wall Street analysts' expectations for both profit and revenue in the third quarter.
The company reported Wednesday morning that it earned $1.4 billion in profit for the quarter, up slightly from the $1.2 billion haul it posted a year ago. Profits through the first nine months of the year were $4.6 billion, down year-over-year from $5.1 billion.
Revenues were $50.4 billion in the quarter, on par with the $50.1 billion it brought in for the prior year quarter. Revenues through three quarters were $149.8 billion, up from $148.3 billion through the first three quarters of 2025.
Elevance now expects to earn at least $29 in earnings per share for the full year, up from its previous 2026 guidance of $27. The company also boosted its outlook in Q2.
CEO Gail Boudreaux said in the company's earnings press release that the team is "confident" in delivering on its promise to deliver at least 12% in EPS growth for 2027 based on the higher baseline it expects following Q3.
"Elevance Health's third quarter results reflect stronger execution across our diversified portfolio and underscore the earnings power of the business," she said. "By bringing together the capabilities of our Health Benefits business and Carelon, we are improving the healthcare experience, strengthening our competitive advantage, and creating long-term value for our shareholders."
The company noted an improved medical loss ratio for the quarter at 90.6%, compared to the 91.7% it reported in the third quarter of 2025. Across the year, insurers have made progress on managing medical costs, as throughout late 2024 and 2025, MLR performance was a drag on the industry.
Elevance said in the release that the improvements reflect better performance in both Medicare Advantage and the individual market, both hot spots for cost pressure.
At the company's insurance unit, operating revenues were $43.4 billion in the quarter, up slightly from $42.2 billion in the prior-year quarter. Elevance said this reflects higher premium yields and service fee revenue, though it was offset in part by declines in membership across MA, Medicaid and employer group plans.
The company reported about 44.9 million members as of Q3, down by 487,000 compared to the third quarter of 2025 amid declines in those three markets.
Operating revenue at Carelon, meanwhile, was $19.3 billion in the third quarter, up from $18.3 billion a year ago. Elevance Health attributed the increase to growth at both CarelonRx and its risk-based solutions at Carelon Services.
Alongside the earnings release, Elevance announced Jeff Park would join the company as president of Carelon, effective Dec. 1. Park joins the company from Waltz Health, where he also served as president, and helped steer its merger with EVERSANA and ongoing growth initiatives.
Park also previously held leadership roles at OptumRx, Catamaran, WellDyneRx and Diplomat Pharmacy.
In the role, Park will be tasked with supporting Carelon through its "next phase of growth," the company said.
"Carelon is central to our strategy and an important driver of growth for Elevance Health," said Boudreaux in the release. "Jeff brings deep healthcare experience and a proven track record of growing businesses, driving execution, and creating value for customers."
"As we build on Carelon's momentum, his leadership will help accelerate growth, expand our impact, and further our work to make health care more affordable, simpler, and more personalized," she said.