Elevance Health IncELV
▼ NegativeCapitalrelevance
Medicaid margin drag and market exits pressure profitability and growth narrative.
Impact on stocks 5
Health Care
Aging Population
UnitedHealth Group IncorporatedUNH
Mentioned
Elevance Health's large Medicaid division is posting a negative operating margin that management forecasts at approximately -1.75% for the full year, calling 2026 the trough year for the segment. The company is exiting the D.C. Medicaid market and expects to leave additional markets over the next 12 to 18 months where sustainable profits are not in sight. While the Commercial and Medicare Advantage segments perform well, the unprofitable Medicaid business pressures overall profitability and challenges the growth narrative supporting the stock's valuation. The company's ability to deliver at least 12% adjusted EPS growth in 2027 hinges on whether the Medicaid margin improves or market exits continue.
Elevance Health IncMedicaid margin drag and market exits pressure profitability and growth narrative.
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