Elevance Health Beats Q1 Estimates With Broad-Based Growth and Solid Outlook

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.