Elevance Health Q3 Revenue Jumps, But YTD Net Income Dips

TL;DR

**ELV's Q3 revenue surge is a good sign, but watch those rising benefit expenses eating into year-to-date profits – it's a mixed bag.**

AI Summary

Elevance Health, Inc. reported total revenues of $50,711 million for the three months ended September 30, 2025, an increase from $45,106 million in the prior year period. For the nine months ended September 30, 2025, total revenues reached $149,378 million, up from $131,569 million in 2024. Net income for the three months ended September 30, 2025, was $1,187 million, an increase from $1,008 million in the same period of 2024. However, net income for the nine months ended September 30, 2025, decreased to $5,115 million from $5,558 million in the prior year, primarily due to higher benefit expense and net losses on financial instruments. Benefit expense rose to $38,140 million for the quarter and $110,158 million for the nine months, compared to $32,949 million and $94,067 million respectively in 2024. The company's medical membership stood at approximately 45.4 million as of September 30, 2025. Strategic outlook includes continued focus on its core brands: Anthem Blue Cross/Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon, which encompasses CarelonRx and Carelon Services. Total assets increased to $122,749 million as of September 30, 2025, from $116,889 million at December 31, 2024, driven by increases in cash and cash equivalents and fixed maturity securities.

Why It Matters

Elevance Health's strong Q3 revenue growth of 12.4% signals robust demand for its health plans and services, which is positive for investors. However, the year-to-date net income decline of 7.9% due to rising benefit expenses could pressure future profitability and warrants investor scrutiny. For employees, continued growth in medical membership to 45.4 million suggests job stability and potential expansion. Customers benefit from a broad spectrum of managed care plans and specialty services, reinforcing Elevance Health's competitive position against rivals like UnitedHealth Group and CVS Health in the evolving healthcare landscape. The broader market sees Elevance Health as a bellwether for the health insurance sector, with its performance reflecting trends in healthcare costs and utilization.

Risk Assessment

Risk Level: medium — The company faces medium risk due to a significant increase in benefit expense, which rose to $110,158 million for the nine months ended September 30, 2025, from $94,067 million in the prior year. This 17.1% increase outpaced revenue growth and contributed to a 7.9% decline in year-to-date net income, indicating potential pressure on profitability if healthcare costs continue to rise. Additionally, net losses on financial instruments increased to $596 million for the nine months ended September 30, 2025, from $371 million in 2024.

Analyst Insight

Investors should monitor Elevance Health's upcoming earnings calls for management's strategy to mitigate rising benefit expenses and improve year-to-date net income. Consider holding ELV if you believe their Carelon segment can drive future profitability, but be prepared for potential volatility if healthcare cost trends worsen.

Financial Highlights

debt To Equity

1.79

revenue

$50.71B

operating Margin

N/A

total Assets

$122.75B

total Debt

$31,922M

net Income

$1.19B

eps

$22.67

gross Margin

N/A

cash Position

$8.71B

revenue Growth

+12.4%

Revenue Breakdown

Key Numbers

• $50.7B — Total Revenues (Increased from $45.1B in Q3 2024, showing 12.4% growth.)
• $1.19B — Net Income (Q3) (Increased from $1.01B in Q3 2024, a 17.7% rise.)
• $5.12B — Net Income (YTD) (Decreased from $5.56B in YTD 2024, a 7.9% decline.)
• $110.16B — Benefit Expense (YTD) (Increased from $94.07B in YTD 2024, a 17.1% rise.)
• 45.4M — Medical Members (Total medical membership as of September 30, 2025.)
• $22.67 — Diluted EPS (YTD) (Decreased from $23.81 in YTD 2024.)
• $122.75B — Total Assets (Increased from $116.89B at December 31, 2024.)
• $17.15B — Medical Claims Payable (Increased from $15.75B at December 31, 2024.)
• $596M — Net Losses on Financial Instruments (YTD) (Increased from $371M in YTD 2024.)
• $2.13B — Repurchase of Common Stock (YTD) (Increased from $1.09B in YTD 2024.)

Key Players & Entities

• Elevance Health, Inc. (company) — registrant
• Blue Cross and Blue Shield Association (company) — independent licensee association
• Anthem Blue Cross (company) — core go-to-market brand
• Wellpoint (company) — core go-to-market brand
• Carelon (company) — core go-to-market brand for healthcare services
• New York Stock Exchange (regulator) — exchange where common stock is registered
• $50,711 million (dollar_amount) — total revenues for three months ended September 30, 2025
• $1,187 million (dollar_amount) — net income for three months ended September 30, 2025
• $110,158 million (dollar_amount) — benefit expense for nine months ended September 30, 2025
• 45.4 million (dollar_amount) — medical members as of September 30, 2025

FAQ

Risk Factors

• Government Healthcare Program Changes [high — regulatory]: Changes in government healthcare programs, such as Medicare and Medicaid, could adversely affect Elevance Health's business. For instance, reductions in reimbursement rates or changes in program eligibility could impact revenue and profitability. The company's significant reliance on these programs makes it vulnerable to policy shifts.
• Competition and Market Saturation [high — market]: The health insurance market is highly competitive, with numerous national and regional players. Increased competition could lead to pricing pressures, reduced market share, and lower profit margins. Elevance Health faces competition from other large insurers and emerging healthcare models.
• Cybersecurity and Data Breaches [high — operational]: As a health insurer, Elevance Health handles vast amounts of sensitive member data. A cybersecurity breach could lead to significant financial losses, reputational damage, and regulatory penalties. The company invests in security measures but remains exposed to evolving cyber threats.
• Investment Portfolio Performance [medium — financial]: The company's financial results are influenced by the performance of its investment portfolio, including fixed maturity and equity securities. Adverse market conditions or poor investment performance, as evidenced by the net losses on financial instruments ($596M YTD 2025 vs $371M YTD 2024), can negatively impact net income.
• Healthcare Reform and Legislation [high — regulatory]: Ongoing changes and potential future reforms to healthcare laws and regulations in the U.S. could significantly impact Elevance Health's operations and financial performance. Compliance with evolving regulations is a continuous challenge.
• Medical Claims and Benefit Expense Management [high — operational]: Effectively managing medical claims and benefit expenses is crucial for profitability. An increase in benefit expense, as seen in YTD 2025 ($110.16B) compared to YTD 2024 ($94.07B), can significantly reduce net income, as experienced in the nine-month period.
• Affordability and Consumer Demand [medium — market]: The demand for health insurance products is sensitive to economic conditions and the affordability of premiums. Economic downturns or rising healthcare costs could reduce consumer demand for Elevance Health's offerings.
• Litigation and Legal Proceedings [medium — legal]: Elevance Health is subject to various lawsuits and legal proceedings incidental to its business. Adverse outcomes in these matters could result in significant financial liabilities and reputational damage.

Industry Context

Elevance Health operates in the highly competitive and regulated U.S. health insurance industry. Key trends include the increasing focus on value-based care, the growing importance of digital health solutions, and ongoing shifts in government healthcare policy. The industry is characterized by large, established players like Elevance Health, alongside a growing number of specialized providers and technology companies.

Regulatory Implications

Elevance Health faces significant regulatory scrutiny due to its participation in government programs like Medicare and Medicaid, and the general oversight of the health insurance market. Changes in healthcare legislation, reimbursement rates, and compliance requirements can materially impact the company's financial performance and operational strategies.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Third Quarter and Nine Months — Reporting period for the financial results discussed in the 10-Q, showing revenue growth but a decline in year-to-date net income.
• 2025-12-31: Previous Fiscal Year End — Baseline for comparison of total assets, which increased from $116.89B to $122.75B.

Glossary

Benefit Expense

The cost incurred by an insurance company to cover claims and provide healthcare services to its members. (A significant expense for Elevance Health, which increased substantially in the nine months ended September 30, 2025, impacting net income.)

Fixed maturity securities

Investments in debt securities, such as bonds, that have a stated maturity date. (A major component of Elevance Health's assets, contributing to investment income and subject to market fluctuations.)

Medical claims payable

The amount of money an insurer owes to healthcare providers for services rendered to its members but not yet paid. (A key current liability for Elevance Health, which increased to $17.15B as of September 30, 2025, indicating higher anticipated payouts.)

Net losses on financial instruments

Losses incurred from changes in the fair value of financial assets and liabilities, such as investments. (Contributed to the decrease in year-to-date net income for Elevance Health, with losses increasing from $371M in YTD 2024 to $596M in YTD 2025.)

Medical membership

The total number of individuals enrolled in Elevance Health's health insurance plans. (A key performance indicator for Elevance Health, standing at approximately 45.4 million as of September 30, 2025.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net assets. (A significant asset on Elevance Health's balance sheet ($28.45B), reflecting past acquisitions.)

Other intangible assets

Intangible assets that do not meet the criteria for classification as goodwill, such as patents, trademarks, and customer lists. (Represents a substantial portion of Elevance Health's assets ($11.33B), which decreased from the prior year-end.)

Accumulated other comprehensive loss

A component of equity that includes unrealized gains and losses on certain investments and foreign currency translations. (Reflects unrealized losses on investments for Elevance Health, which improved from a loss of $1.15B to $0.54B.)

Year-Over-Year Comparison

Elevance Health demonstrated robust revenue growth, with total revenues increasing by 12.4% to $50.71B for the quarter and 13.6% to $149.38B year-to-date compared to the prior year. However, this top-line growth was offset by a significant rise in benefit expenses, which grew by 17.1% year-to-date, leading to a 7.9% decline in net income for the nine-month period. Net losses on financial instruments also widened, further pressuring profitability. Total assets saw a modest increase, driven by cash and investments, while medical claims payable also rose, reflecting higher anticipated payouts.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value ELV New York Stock Exchange

Filing Documents

• elv-20250930.htm (10-Q) — 2175KB
• exhibit109e-formofemployme.htm (EX-10.9(E)) — 35KB
• exhibit311-20250930q32025.htm (EX-31.1) — 10KB
• exhibit312-20250930q32025.htm (EX-31.2) — 10KB
• exhibit321-20250930q32025.htm (EX-32.1) — 5KB
• exhibit322-20250930q32025.htm (EX-32.2) — 5KB
• elv-20250930_g1.jpg (GRAPHIC) — 20KB
• 0001156039-25-000136.txt ( ) — 11311KB
• elv-20250930.xsd (EX-101.SCH) — 50KB
• elv-20250930_cal.xml (EX-101.CAL) — 90KB
• elv-20250930_def.xml (EX-101.DEF) — 265KB
• elv-20250930_lab.xml (EX-101.LAB) — 780KB
• elv-20250930_pre.xml (EX-101.PRE) — 548KB
• elv-20250930_htm.xml (XML) — 2250KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 2 Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 3 Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 4 Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024 5 Consolidated Statements of Changes in Equity (Unaudited) for the Nine Months Ended September 30, 2025 and 2024 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 38

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 55

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 55

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 55

RISK FACTORS

ITEM 1A. RISK FACTORS 55

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 56

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 56

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 56

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 56

EXHIBITS

ITEM 6. EXHIBITS 57

SIGNATURES

SIGNATURES 58 -1-

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Elevance Health, Inc. Consolidated Balance Sheets September 30, 2025 December 31, 2024 (Unaudited) (In millions, except share and per share data) Assets Current assets: Cash and cash equivalents $ 8,713 $ 8,288 Fixed maturity securities (amortized cost of $ 26,200 and $ 25,879 ; allowance for credit losses of $ 13 and $ 6 ) 26,283 25,201 Equity securities 1,220 1,192 Premium receivables, net 9,535 8,011 Self-funded receivables, net 5,122 5,044 Other receivables 7,692 6,016 Other current assets 5,213 4,700 Assets held for sale — 490 Total current assets 63,778 58,942 Long-term investments: Fixed maturity securities (amortized cost of $ 1,110 and $ 1,049 ; allowance for credit losses of $ 0 and $ 0 ) 1,111 1,035 Other invested assets 10,648 9,749 Property and equipment, net 4,657 4,652 Goodwill 28,451 28,277 Other intangible assets 11,327 12,094 Other noncurrent assets 2,777 2,140 Total assets $ 122,749 $ 116,889 Liabilities and equity Liabilities Current liabilities: Medical claims payable $ 17,148 $ 15,746 Other policyholder liabilities 2,447 4,204 Unearned income 1,831 1,508 Accounts payable and accrued expenses 6,085 6,927 Short-term borrowings 180 365 Current portion of long-term debt 749 1,649 Other current liabilities 12,438 10,029 Liabilities held for sale — 153 Total current liabilities 40,878 40,581 Long-term debt, less current portion 31,173 29,218 Reserves for future policy benefits 164 190 Deferred tax liabilities, net 2,315 2,148 Other noncurrent liabilities 4,137 3,326 Total liabilities 78,667 75,463 Commitments and contingencies – Note 11 Shareholders' equity Preferred stock, without par value, shares authorized – 100,000,000 ; shares issued and outstanding – none — — Common stock, par value $ 0.01 , shares authorized – 900,000,000 ; shares issued and outstanding – 222,036,187 and 227,479,695 2 2 Additional paid-in capital 8,908 8,911 Retained earnings 35,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) September 30, 2025 (In Millions, Except Per Share Data or As Otherwise Stated Herein) 1. Organization References to the terms "we," "our," "us" or "Elevance Health" used throughout these Notes to the Consolidated Financial Statements refer to Elevance Health, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries. References to the "states" include the District of Columbia and Puerto Rico unless the context otherwise requires. Elevance Health is a health company with the purpose of improving the health of humanity. We are one of the largest health insurers in the United States in terms of medical membership, serving approximately 45.4 million medical members through our affiliated health plans as of September 30, 2025. We offer a broad spectrum of network-based managed care risk-based plans to Individual, Employer Group, Medicaid and Medicare markets. In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, provider network access, medical management, care management, wellness programs, actuarial services and other administrative services. We provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employees Program ("FEP "). We provide an array of specialty services both to customers of our subsidiary health plans and to unaffiliated health plans, including pharmacy services, stop loss insurance, dental, vision and supplemental health insurance benefits, as well as integrated health services. We are an independent licensee of the Blue Cross and Blue Shield Association ("BCBSA"), an association of independent health benefit plans. We serve our members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield ("BCBS") licensee for Colorado, Connecticut, Georgia, Indian