Elevance Health's second-quarter 2026 results triggered a broad selloff in managed-care stocks as margin pressure in its Health Benefits segment overshadowed better-than-expected headline numbers. Elevance shares fell 6.7% in premarket trading after adjusted operating margin in the segment dropped to 3.6% from 5.0% a year earlier, with operating profit nearly halving due to lagging Medicaid reimbursement rates and a Medicare Advantage repositioning. UnitedHealth Group declined 2.7% ahead of its own quarterly report, while pure-play Medicaid insurer Molina Healthcare dropped as much as 9%, the steepest decline among major peers. Humana fell roughly 1.7%, Centene lost 4.9%, and CVS Health was down 2.3%. Elevance posted revenue of $50.47 billion, up 2.1% year-on-year and beating consensus by 3.9%, and adjusted earnings per share of $7.45, about 20% above the $6.21 estimate, while raising full-year adjusted EPS guidance to at least $27.00, but the core insurance performance raised concerns that Medicaid margin deterioration could be sector-wide.
Elevance Health IncAdjusted operating margin in Health Benefits segment dropped to 3.6% from 5.0% due to lagging Medicaid reimbursement rates and Medicare Advantage repositioning, indicating margin pressure.
Centene Corp
CVS Health Corp
Molina Healthcare Inc
Humana Inc
UnitedHealth Group Incorporated