| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 18.6x | 17.8x | Top tier | |
Growth | 25 | 6.3% | 7.1% | Bottom tier | |
Quality | 79 | 6.0% | 4.5% | Top tier | |
Safety | 63 | — | 2.6x | Around median | |
Capital Return | 50 | 1.61% | 2.12% | Around median | |
Momentum | 92 | 25.7% | 2.9% | Top tier | |
Sentiment | 96 | 19 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Elevance Health operates in health insurance, benefits management, and integrated health services through its commercial and government health benefits businesses, including Medicaid, Medicare Advantage, and Individual ACA plans, alongside the Carelon platform, which includes pharmacy, care, and complex case management solutions. The company generates revenue primarily from health plan premiums, fees for administering self-funded plans, and product and service revenue, while its integrated medical and pharmacy benefits model supports opportunities to control costs and improve customer retention. It ended Q2 FY2026 with 44.9 million medical members, with the sequential decline primarily attributable to the transition of a known fee-based customer and lower Individual ACA and Medicaid membership.
According to EDGAR data, Q2 FY2026 revenue was approximately $50.5 billion, gross profit was $45.0 billion, net income was $1.5 billion, and earnings per share were $6.71, implying a net margin of approximately 3.0%. According to management's operating presentation, operating revenue was $49.8 billion, up 0.8% year over year, supported by higher premium yields and product revenue, partially offset by lower health plan membership. The company also reported adjusted diluted earnings per share of $7.45, exceeding its expectations, due to improved benefit expenses in Medicare Advantage and Individual ACA and expense discipline.
Performance was divided among clear improvement in Medicare Advantage, commercial performance in line with expectations, Individual ACA developing according to pricing and plan, and a growing role for Carelon, versus continued pressure in Medicaid. For comparison, the company recorded Q1 FY2026 revenue of $50.2 billion, net income of $1.8 billion, and earnings per share of $8.00, meaning sequential revenue growth in Q2 FY2026 was accompanied by lower net income. FY2025 revenue was $199.1 billion, net income was $5.7 billion, and earnings per share were $25.21.
The analyst consensus is Buy, with an average target of $444.06 and a wide range between $391 and $498; the average is approximately 1.8% above the 52-week high of $436.24, while the low is $274.84. The higher target is supported by expectations for increased FY2026 earnings and a return to adjusted growth of at least 12% in FY2027, but the wide range of targets and Medicaid margin pressure of approximately negative 1.75% highlight that the rerating depends on executing an operating improvement that is not yet complete.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
EDGAR data showed revenue of $50.5 billion, net income of $1.5 billion, and earnings per share of $6.71 in Q2 FY2026. Gross profit was $45.0 billion, equivalent to a gross margin of approximately 89.1%, while the net income margin was approximately 3.0%. On the operating basis presented by management, revenue was $49.8 billion and adjusted diluted earnings per share were $7.45, with year-over-year revenue growth of 0.8%.
Management raised its adjusted diluted earnings per share guidance for FY2026 to at least $27 after Q2 FY2026 performance exceeded its expectations. The outperformance came from improved benefit expenses in Medicare Advantage and Individual ACA, alongside expense control and the execution of care management initiatives. Management identified $26 as the basis for modeling and reaffirmed its target of at least 12% adjusted earnings per share growth in FY2027 from the year-end FY2026 baseline.
The company expects an operating margin of approximately negative 1.75% for the Medicaid business in FY2026 and considers this year the expected trough for margins. Cost pressures are concentrated in behavioral health, including applied behavior analysis treatment, specialty drugs, outpatient surgeries, and emergency department utilization. Rate updates effective July 1, 2026 were in the mid-single-digit percentage range and leaned toward the upper end of that range, but management does not assume a material improvement in the cost trend during the second half.
Automated analysis for informational purposes only — not investment advice.
Carelon is expanding value-based care solutions in complex and chronic areas, including CareBridge, behavioral health, and oncology. Management said CareBridge can generate medical savings in the mid-teens percentage range for some members, while behavioral health programs generated average savings of 10%. Conversely, near-term Carelon Services earnings reflect continued investment in the platform and the expansion of new risk-based programs that need time to mature.
Elevance Health repositioned the portfolio through more disciplined plan design, greater focus on D-SNP and HMO products, and a more favorable membership mix. Improved claims experience and care management programs contributed to Q2 FY2026 results exceeding expectations, with a target operating margin of at least 2% for FY2026. The company submitted its FY2027 offerings based on a cautious view of the cost trend, despite management stating that underlying medical cost growth continues to exceed program funding.
The stock has a Buy consensus, with an average price target of $444.06 and targets ranging from $391 to $498. The average exceeds the upper end of the 52-week range of $436.24, while the lower end of the range is $274.84. The wide range of targets reflects differing assessments of the company's ability to improve Medicaid, maintain the targeted Medicare Advantage margin, and convert Carelon investments into sustainable earnings growth.
