Elevance Health's Strong Financial Performance in Q1 2025

Elevance Health (NYSE:ELV) delivered a strong performance in the first quarter of 2025, beating analyst expectations on both earnings and revenue as momentum across its core business lines drove solid financial results.

The health insurer posted adjusted earnings of $11.97 per share, well above the consensus forecast of $11.08. Revenue surged to $48.8 billion, outpacing estimates and marking a robust 15.4% increase compared to the same period last year.

The company’s growth was fueled by solid contributions from both its primary operating segments. Health Benefits revenue climbed 11.2% to $41.4 billion, bolstered by higher premiums and a growing membership base in Medicare Advantage and Affordable Care Act plans. Meanwhile, the Carelon segment saw explosive 63% growth to $6.5 billion, reflecting the impact of recent acquisitions and expansion in risk-based services.

While the medical loss ratio ticked up to 86.4%, reflecting rising Medicaid costs, Elevance offset this with tighter cost control elsewhere. The operating expense ratio declined to 10.9%, helped by revenue scale and disciplined expense management.

Looking ahead, the company reaffirmed its full-year adjusted earnings guidance of $34.15 to $34.85 per share—closely aligned with market expectations—signaling confidence in its strategy and continued execution across a complex healthcare landscape.

Elevance Health (NYSE:ELV) delivered a strong performance in the first quarter of 2025, beating analyst expectations on both earnings and revenue as momentum across its core business lines drove solid financial results.

The health insurer posted adjusted earnings of $11.97 per share, well above the consensus forecast of $11.08. Revenue surged to $48.8 billion, outpacing estimates and marking a robust 15.4% increase compared to the same period last year.

The company’s growth was fueled by solid contributions from both its primary operating segments. Health Benefits revenue climbed 11.2% to $41.4 billion, bolstered by higher premiums and a growing membership base in Medicare Advantage and Affordable Care Act plans. Meanwhile, the Carelon segment saw explosive 63% growth to $6.5 billion, reflecting the impact of recent acquisitions and expansion in risk-based services.

While the medical loss ratio ticked up to 86.4%, reflecting rising Medicaid costs, Elevance offset this with tighter cost control elsewhere. The operating expense ratio declined to 10.9%, helped by revenue scale and disciplined expense management.

Looking ahead, the company reaffirmed its full-year adjusted earnings guidance of $34.15 to $34.85 per share—closely aligned with market expectations—signaling confidence in its strategy and continued execution across a complex healthcare landscape.

Elevance Health (NYSE:ELV) is a prominent player in the healthcare industry, providing a range of health insurance products and services. The company competes with other major insurers like UnitedHealth Group and Cigna. On January 23, 2025, ELV reported earnings per share (EPS) of $3.84, surpassing the estimated $3.80. This performance highlights the company's ability to exceed market expectations.

Despite the positive earnings surprise, ELV's EPS of $3.84 marks a decline from the $5.62 reported in the same quarter the previous year, as highlighted by Zacks. This decrease may raise concerns among investors about the company's growth trajectory. However, ELV's revenue of approximately $44.99 billion exceeded the estimated $44.92 billion, showcasing its strong sales performance.

ELV's financial metrics provide further insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 15.31, indicating how the market values its earnings. A lower P/E ratio compared to industry peers might suggest that ELV is undervalued. Additionally, the price-to-sales ratio of about 0.52 suggests a relatively low market value compared to its sales.

The enterprise value to sales ratio of around 0.48 reflects ELV's total valuation compared to its revenue, while the enterprise value to operating cash flow ratio is notably high at approximately 39.86. This high ratio indicates that the company's valuation is significantly higher than its cash flow from operations, which could be a point of concern for investors.

ELV's financial stability is further supported by its low debt-to-equity ratio of 0.049, indicating a conservative use of debt. The current ratio of 1.45 suggests that ELV is well-positioned to cover its short-term liabilities with its short-term assets, providing a cushion against potential financial challenges.

Elevance Health (NYSE:ELV) is a prominent player in the healthcare industry, providing a range of health insurance products and services. The company competes with other major insurers like UnitedHealth Group and Cigna. On January 23, 2025, ELV reported earnings per share (EPS) of $3.84, surpassing the estimated $3.80. This performance highlights the company's ability to exceed market expectations.

Despite the positive earnings surprise, ELV's EPS of $3.84 marks a decline from the $5.62 reported in the same quarter the previous year, as highlighted by Zacks. This decrease may raise concerns among investors about the company's growth trajectory. However, ELV's revenue of approximately $44.99 billion exceeded the estimated $44.92 billion, showcasing its strong sales performance.

ELV's financial metrics provide further insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 15.31, indicating how the market values its earnings. A lower P/E ratio compared to industry peers might suggest that ELV is undervalued. Additionally, the price-to-sales ratio of about 0.52 suggests a relatively low market value compared to its sales.

The enterprise value to sales ratio of around 0.48 reflects ELV's total valuation compared to its revenue, while the enterprise value to operating cash flow ratio is notably high at approximately 39.86. This high ratio indicates that the company's valuation is significantly higher than its cash flow from operations, which could be a point of concern for investors.

ELV's financial stability is further supported by its low debt-to-equity ratio of 0.049, indicating a conservative use of debt. The current ratio of 1.45 suggests that ELV is well-positioned to cover its short-term liabilities with its short-term assets, providing a cushion against potential financial challenges.

• Cowen & Co. maintains a "Buy" rating for Elevance Health (NYSE:ELV), adjusting the price target from $589 to $484.
• The company reported a disappointing third-quarter result for 2024, with an increase in the benefit expense ratio, leading to reduced earnings expectations for the full year.
• Despite these challenges, Elevance Health is considered favorably valued, with a stable revenue stream from government plans and a strong market presence.

Elevance Health (NYSE:ELV) is a prominent player in the healthcare sector, providing a range of health insurance products and services. The company competes with other major insurers like UnitedHealth Group and Cigna. On October 21, 2024, Cowen & Co. maintained its "Buy" rating for Elevance Health, with the stock priced at $430.77. However, TD Cowen adjusted its price target from $589 to $484.

Elevance Health's third-quarter results for 2024 were disappointing, with a notable increase in the benefit expense ratio. This ratio measures the cost of benefits provided to policyholders relative to the premiums earned. A higher ratio indicates increased costs, which can impact profitability. Consequently, the company reduced its earnings expectations for the full year.

Despite these challenges, Elevance Health's stock is considered favorably valued. Analysts have conducted a detailed analysis of the company's exposure to government plans, which are a significant part of its business. These plans are generally profitable, providing a stable revenue stream for the company. Even with conservative growth assumptions, the stock remains attractive to investors.

The current price of ELV is $430.77, reflecting a decrease of 3.06% with a change of -$13.58. Today, the stock has fluctuated between a low of $426.46 and a high of $442.78. Over the past year, ELV has reached a high of $567.26 and a low of $397.98. The company's market capitalization stands at approximately $99.91 billion, indicating its significant presence in the market.

The trading volume for ELV on the NYSE is 3,318,298 shares, suggesting active investor interest. Despite the recent challenges, the maintained "Buy" rating by Cowen & Co. indicates confidence in Elevance Health's long-term potential. Investors may find the current valuation appealing, especially given the company's strong position in the healthcare industry.