Elevance Health Forecasts 2026 Profit Below Estimates as Rising Medical Costs Pressure Earnings

Elevance Health, Inc. ELV announced on Wednesday that it expects 2026 adjusted profit to be at least $25.50 per share, a figure that falls short of the $26.90 per share estimate compiled by LSEG (source of analysts' estimate). The company also projected a low-single-digit decline in total operating revenue for 2026. This forward-looking guidance highlights the impact of persistent elevated medical costs that are currently pressuring earnings across the US US health insurers / managed health care sector.

The forecast follows a period of significant change for Medicaid programs, where U.S. states (redetermination of Medicaid eligibility) conducted a review of enrollment after pandemic-era protections ended. Elevance Health, Inc.noted that this enrollment churn resulted in many healthier members falling off the rolls, leaving behind a sicker membership mix that requires more frequent medical services. Consequently, the company stated it expects higher medical costs to persist into 2026 as demand for healthcare remains high in specific areas, including behavioral health services and specialty drugs.