Elevance Health reported second-quarter results that exceeded analyst expectations, yet shares fell more than 9% premarket as investors focused on margin concerns. Adjusted earnings per share came in at $7.45, beating the consensus of $6.21, while revenue rose 0.8% year-over-year to $49.8 billion, above the $48.63 billion estimate. However, the operating margin fell to 3.5% from 4.9% a year earlier, and the Health Benefits segment margin dropped to 2.1% from 3.8%, driven by an 80-basis-point increase in the benefit expense ratio to 89.7%. The company raised its fiscal 2026 adjusted EPS guidance to at least $27.00, slightly above the $26.91 consensus, and increased its operating cash flow guidance to at least $6.0 billion. Medical membership totaled approximately 44.9 million as of June 30, 2026, down 469,000 sequentially.
Elevance Health IncOperating margin fell sharply, driving share decline despite earnings beat.