Elevance Health Net Income Falls 19% to $1.76B in Q1 2026

Elevance Health, Inc. (NYSE: ELV), a health insurance and benefits provider, reported net income of $1.76 billion for the three months ended March 31, 2026, down 19% from $2.18 billion in the same period a year earlier. Shareholders' net income was $1.76 billion, or $8.00 per diluted share, compared to $2.18 billion, or $9.61 per diluted share, in Q1 2025. Read more earnings reports.

Total revenues climbed 3% to $50.18 billion from $48.89 billion. Operating revenue rose to $49.49 billion from $48.77 billion, driven by a modest increase in premiums to $41.02 billion from $40.89 billion and higher product revenue of $6.23 billion compared to $5.81 billion. Service fees reached $2.25 billion, up from $2.07 billion.

Net investment income surged 30% to $765 million from $590 million. The company reported net losses on financial instruments of $78 million, a significant improvement from $464 million in losses during the prior-year quarter.

Total expenses increased 4% to $47.88 billion from $46.09 billion. Benefit expense climbed to $35.62 billion from $35.31 billion, while cost of products sold rose to $5.46 billion from $4.98 billion. Operating expense jumped 19% to $6.33 billion from $5.30 billion.

Income before income tax expense fell to $2.30 billion from $2.80 billion. Income tax expense declined to $544 million from $613 million, reflecting an effective tax rate of approximately 24%.

Balance Sheet and Cash Flow

Total assets increased to $125.83 billion as of March 31, 2026, up from $121.49 billion at December 31, 2025. Cash and cash equivalents stood at $9.66 billion, slightly higher than $9.49 billion at year-end. Medical claims payable rose to $18.43 billion from $17.08 billion.

Net cash provided by operating activities surged to $4.33 billion for Q1 2026 from $1.02 billion in Q1 2025. The company used $1.64 billion in investing activities, primarily for investment purchases of $4.74 billion partially offset by proceeds from sales of $3.09 billion. Financing activities consumed $2.52 billion, including $750 million in long-term debt repayments and $1.12 billion for stock repurchases.

Total shareholders' equity was $43.90 billion as of March 31, 2026, essentially flat from $43.88 billion at December 31, 2025. The company repurchased and retired 3.6 million shares during the quarter for $1.13 billion, including excise tax. Dividends paid totaled $376 million, or $1.72 per share.

Investment Portfolio

Fixed maturity securities at fair value totaled $27.02 billion as of March 31, 2026, compared to $27.01 billion at December 31, 2025. The portfolio included $13.91 billion in corporate securities, $3.58 billion in tax-exempt municipal bonds, and $3.29 billion in residential mortgage-backed securities. Net unrealized losses on the investment portfolio widened during the quarter.

Other invested assets increased to $11.01 billion from $10.84 billion, including $2.99 billion in company-owned life insurance, $3.11 billion in equity method investments, and $3.17 billion in limited partnership investments.