Executing with discipline to improve affordability and elevate the member experience
3Q 2025 operating revenue of $50.1 billion, up 12.0% from 3Q 2024
3Q 2025 diluted EPS¹ of $5.32; adjusted diluted EPS² of $6.03
Reaffirm FY 2025 benefit expense ratio and adjusted diluted EPS guidance of approximately 90.0% and approximately $30.00, respectively
Returned $3.3 billion of capital to shareholders year-to-date

Elevance Health, Inc. (NYSE:ELV) reported third quarter 2025 results.

"Our third quarter results were in line with expectations and reflect disciplined execution across Elevance Health. In a dynamic healthcare environment, we're focused on advancing affordability and elevating the member experience through our growing value-based care partnerships and AI-enabled digital solutions that simplify access and improve outcomes. As we plan for 2026, we remain disciplined in managing what we can control – positioning our businesses for long-term, sustainable growth and value creation for all stakeholders."

Gail K. Boudreaux

President and Chief Executive Officer

1.	Earnings per diluted share ("EPS").
2.	Refer to GAAP reconciliation tables for reconciliation of GAAP to adjusted measures.


Elevance Health
Consolidated Enterprise Highlights
(Unaudited)

(In billions)	Three Months Ended
	September 30, 2025	September 30, 2024

Operating Revenue¹	$50.1	$44.7
Operating Gain^1,2	$1.3	$1.4
Adjusted Operating Gain^1,3	$1.3	$2.5

Operating Margin¹	2.6 %	3.1 %
Adjusted Operating Margin^1,3	2.7 %	5.5 %

1.	See "Basis of Presentation."
2.	Operating Gain for the three months ended September 30, 2025, and September 30, 2024, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
3.	Adjusted Operating Gain for the three months ended September 30, 2025, and September 30, 2024, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

Operating revenue was $50.1 billion in the third quarter of 2025, an increase of $5.4 billion, or 12 percent compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment, recently closed acquisitions, and growth in Medicare Advantage membership, partially offset by ongoing Medicaid membership losses due to eligibility reverifications.

The benefit expense ratio was 91.3 percent, an increase of 180 basis points year over year, reflecting elevated, but expected, cost trend primarily in our Medicare business given pronounced seasonality in Part D benefits associated with changes made in the Inflation Reduction Act. Days in Claims Payable stood at 42.6 days as of September 30, 2025, when adjusted for our acquisition of CareBridge. This represents a decrease of 0.2 days year over year on a comparable basis.

The operating expense ratio was 10.5 percent, an improvement of 130 basis points. The adjusted operating expense ratio was 10.4 percent, an increase of 100 basis points, primarily driven by targeted investments to scale Carelon's capabilities, support and strengthen our workforce, and accelerate technology adoption while maintaining expense discipline.

Cash Flow & Balance Sheet

Operating cash flow was $4.2 billion year-to-date, or 0.8 times GAAP net income, a decrease of $0.9 billion year over year reflecting in part the Provider Settlement Agreement payment for the multi-district BCBSA litigation. As of September 30, 2025, cash and investments at the parent company totaled approximately $2.6 billion.

During the third quarter of 2025, the Company repurchased 2.9 million shares of its common stock for $875 million, at a weighted average price of $303.48, and paid a quarterly dividend of $1.71 per share, representing a distribution of cash totaling $381 million. As of September 30, 2025, the Company had approximately $7.2 billion of Board approved share repurchase authorization remaining.

Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard^®, Medicare, Medicaid, and Federal Employee Program businesses.


Health Benefits
Reportable Segment Highlights
(Unaudited)

(In billions)	Three Months Ended
	September 30, 2025	September 30, 2024

Operating Revenue¹	$42.2	$38.3
Operating Gain^1,2	$0.6	$1.6
Adjusted Operating Gain^1,3	$0.6	$1.6

Operating Margin¹	1.4 %	4.2 %
Adjusted Operating Margin¹	1.4 %	4.2 %

1.	See "Basis of Presentation."
2.	Operating Gain for the three months ended September 30, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
3.	Adjusted Operating Gain for the three months ended September 30, 2024, excludes $19 million of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Health Benefits segment.

Health Benefits segment operating revenue was $42.2 billion in the third quarter of 2025, an increase of $4.0 billion, or 10 percent compared to the prior year quarter, driven primarily by higher premium yields, recently closed acquisitions, and growth in our Medicare Advantage membership, partially offset by ongoing Medicaid reverifications.

Operating gain totaled $0.6 billion, impacted principally by higher medical cost trend and increased investments to support and strengthen our workforce and accelerate technology adoption, partially offset by higher revenue.

Medical membership totaled approximately 45.4 million as of September 30, 2025, driven by lower year over year BlueCard^®and Medicaid membership.

Carelon is comprised of CarelonRx and Carelon Services.


Carelon
Reportable Segment Highlights
(Unaudited)

(In billions)	Three Months Ended
	September 30, 2025	September 30, 2024

Operating Revenue^1,2	$18.3	$13.8
Operating Gain^1,3	$0.8	$0.8
Adjusted Operating Gain^1,4	$0.8	$0.9

Operating Margin¹	4.2 %	5.8 %
Adjusted Operating Margin¹	4.2 %	6.2 %

1.	See "Basis of Presentation."
2.	Operating Revenue for the three months ended September 30, 2024, includes $0.2 billion of revenue related to 2024 business dispositions and related items that have been excluded from adjusted operating gain.
3.	Operating Gain for the three months ended September 30, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
4.	Adjusted Operating Gain for the three months ended September 30, 2024, excludes $53 million of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment.

Operating revenue for Carelon was $18.3 billion in the third quarter of 2025, an increase of $4.5 billion, or 33 percent compared to the prior year quarter. This was driven by recent acquisitions in home health and pharmacy services, growth in CarelonRx product revenue, and the scaling of Carelon Services risk-based solutions.

Operating gain for Carelon totaled $0.8 billion, reflecting strong Carelon Services performance offset by targeted platform investments to support growth and the scaling of our pharmacy assets.

Quarterly Dividend

On October 15, 2025, the Audit Committee of the Company's Board of Directors declared a fourth quarter 2025 dividend to shareholders of $1.71 per share. The fourth quarter dividend is payable on December 19, 2025, to shareholders of record at the close of business on December 5, 2025.

About Elevance Health

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health's companies serve 109 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time ("EDT") to discuss the company's third quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

888-947-9963 (Domestic)	800-391-9853 (Domestic Replay)
312-470-0178 (International)	203-369-3269 (International Replay)

The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on November 21, 2025. The call will also be available through a live webcast at www.elevancehealth.com under the "Investors" link. A webcast replay will be available following the call.

Basis of Presentation

Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
Operating margin is defined as operating gain divided by operating revenue.

Elevance Health

Earnings Release Financial Schedules and Supplementary Information

Quarter & Year-to-Date Ended September 30, 2025

Membership and Other Metrics

Quarterly & Year-to-Date Consolidated Statements of Income

Condensed Consolidated Balance Sheet

Condensed Consolidated Statement of Cash Flows

Supplemental Financial Information - Reportable Segments & Health Benefits Revenue Detail

Supplemental Financial Information - Reconciliation of Medical Claims Payable

Reconciliation of Non-GAAP Financial Measures

Elevance Health
Membership and Other Metrics
(Unaudited)

				Change from
Medical Membership (in thousands)	September 30, 2025	September 30, 2024	June 30, 2025	September 30, 2024	June 30, 2025
Individual	1,354	1,299	1,348	4.2 %	0.4 %
Employer Group Risk-Based	3,616	3,672	3,615	(1.5) %	— %
Commercial Risk-Based	4,970	4,971	4,963	— %	0.1 %
BlueCard^®	6,394	6,677	6,570	(4.2) %	(2.7) %
Employer Group Fee-Based	20,608	20,589	20,584	0.1 %	0.1 %
Commercial Fee-Based	27,002	27,266	27,154	(1.0) %	(0.6) %
Medicare Advantage	2,245	2,047	2,255	9.7 %	(0.4) %
Medicare Supplement	877	894	874	(1.9) %	0.3 %
Total Medicare	3,122	2,941	3,129	6.2 %	(0.2) %
Medicaid	8,645	8,926	8,733	(3.1) %	(1.0) %
Federal Employee Program	1,630	1,656	1,642	(1.6) %	(0.7) %
Total Medical Membership	45,369	45,760	45,621	(0.9) %	(0.6) %

Other Metrics (in millions)
CarelonRx Quarterly Adjusted Scripts	85.0	80.2	83.3	6.0 %	2.0 %
Carelon Services Consumers Served	97.6	101.3	97.3	(3.7) %	0.3 %

Elevance Health
Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)	Three Months Ended September 30					Nine Months Ended September 30
	2025		2024		Change	2025		2024		Change

Revenues
Premiums	$	41,791	$	36,809	13.5 %	$	123,949	$	107,921	14.9 %
Product revenue		6,159		5,887	4.6 %		18,010		15,916	13.2 %
Service fees		2,137		2,023	5.6 %		6,314		6,378	(1.0) %
Total operating revenue		50,087		44,719	12.0 %		148,273		130,215	13.9 %
Net investment income		625		551	13.4 %		1,701		1,524	11.6 %
Net losses on financial instruments		(1)		(125)	NM		(596)		(371)	NM
Gain (loss) on sale of business		—		(39)	NM		—		201	NM
Total revenues		50,711		45,106	12.4 %		149,378		131,569	13.5 %
Expenses
Benefit expense		38,140		32,949	15.8 %		110,158		94,067	17.1 %
Cost of products sold		5,380		5,093	5.6 %		15,656		13,738	14.0 %
Operating expense		5,272		5,269	0.1 %		15,569		15,221	2.3 %
Interest expense		351		300	17.0 %		1,036		845	22.6 %
Amortization of other intangible assets		162		122	32.8 %		464		400	16.0 %
Total expenses		49,305		43,733	12.7 %		142,883		124,271	15.0 %

Income before income tax expense		1,406		1,373	2.4 %		6,495		7,298	(11.0) %

Income tax expense		219		365	(40.0) %		1,380		1,740	(20.7) %
Net income		1,187		1,008	17.8 %		5,115		5,558	(8.0) %

Net loss attributable to noncontrolling interests		2		8	NM		—		4	NM
Shareholders' net income	$	1,189	$	1,016	17.0 %	$	5,115	$	5,562	(8.0) %
Shareholders' earnings per diluted share	$	5.32	$	4.36	22.0 %	$	22.67	$	23.81	(4.8) %
Diluted shares		223.7		233.1	(4.0) %		225.6		233.6	(3.4) %

Benefit expense as a percentage of premiums		91.3 %		89.5 %	180 bp		88.9 %		87.2 %	170 bp
Operating expense as a percentage of total operating revenue		10.5 %		11.8 %	(130) bp		10.5 %		11.7 %	(120) bp
Income before income tax expense as a percentage of total revenue		2.8 %		3.0 %	(20) bp		4.3 %		5.5 %	(120) bp

"NM" = calculation not meaningful

Elevance Health
Condensed Consolidated Balance Sheet
(In millions)	September 30, 2025	December 31, 2024
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$8,713	$8,288
Fixed maturity and equity securities	27,503	26,393
Premium and other receivables	22,349	19,071
Other current assets	5,213	4,700
Assets held for sale	—	490
Total current assets	63,778	58,942

Long-term investments	11,759	10,784
Property and equipment, net	4,657	4,652
Goodwill and other intangible assets	39,778	40,371
Other noncurrent assets	2,777	2,140
Total assets	$122,749	$116,889

Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable	$17,148	$15,746
Short-term borrowings	180	365
Current portion of long-term debt	749	1,649
Other current liabilities	22,801	22,668
Liabilities held for sale	—	153
Total current liabilities	40,878	40,581

Long-term debt, less current portion	31,173	29,218
Other noncurrent liabilities	6,616	5,664
Total liabilities	78,667	75,463

Total shareholders' equity	43,953	41,315
Noncontrolling interests	129	111
Total equity	44,082	41,426
Total liabilities and equity	$122,749	$116,889

Elevance Health
Condensed Consolidated Statement of Cash Flows
(Unaudited)

(In millions)	Nine Months Ended September 30
	2025		2024

Operating activities
Net income	$5,115		$5,558
Depreciation and amortization	1,140		995
Share-based compensation	246		220
Changes in operating assets and liabilities	(2,753	)	(1,701	)
Other non-cash items	458		30
Net cash provided by operating activities	4,206		5,102

Investing activities
Purchases of investments, net of sales and maturities	(412	)	(1,614	)
Proceeds from (purchases of) subsidiaries, net of cash	55		(725	)
Purchases of property and equipment	(823	)	(934	)
Other, net	(628	)	(256	)
Net cash used in investing activities	(1,808	)	(3,529	)

Financing activities
Net change in short-term and long-term borrowings	659		1,915
Repurchase and retirement of common stock	(2,134	)	(1,089	)
Cash dividends	(1,152	)	(1,135	)
Other, net	653		94
Net cash (used in) provided by financing activities	(1,974	)	(215	)

Effect of foreign exchange rates on cash and cash equivalents	1		2

Change in cash and cash equivalents	425		1,360
Cash and cash equivalents at beginning of period	8,288		6,526
Cash and equivalents included in assets held for sale at end of period	—		(20	)

Cash and cash equivalents at end of period	$8,713		$7,866

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard^®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).

Elevance Health
Reportable Segment Details
(Unaudited)

(In millions)	Three Months Ended September 30						Nine Months Ended September 30
	2025		2024		Change		2025		2024		Change

Operating Revenue
Health Benefits	$42,246		$38,278		10.4	%	$125,259		$112,695		11.1	%
CarelonRx	10,997		9,143		20.3	%	31,756		25,984		22.2	%
Carelon Services	7,324		4,638		57.9	%	21,301		13,192		61.5	%
Corporate & Other	149		74		101.4	%	546		323		69.0	%
Eliminations	(10,629	)	(7,414	)	NM⁶		(30,589	)	(21,979	)	NM⁶
Total Operating Revenue¹	$50,087		$44,719		12.0	%	$148,273		$130,215		13.9	%

Operating Gain (Loss)
Health Benefits²	$601		$1,604		(62.5	)%	$4,378		$6,036		(27.5	)%
CarelonRx	556		619		(10.2	)%	1,694		1,639		3.4	%
Carelon Services²	219		184		19.0	%	1,110		682		62.8	%
Corporate & Other^2,3	(81	)	(999	)	NM⁶		(292	)	(1,168	)	NM⁶
Total Operating Gain^1,4	$1,295		$1,408		(8.0	)%	$6,890		$7,189		(4.2	)%

Operating Margin
Health Benefits	1.4	%	4.2	%	(280) bp		3.5	%	5.4	%	(190) bp
CarelonRx	5.1	%	6.8	%	(170) bp		5.3	%	6.3	%	(100) bp
Carelon Services	3.0	%	4.0	%	(100) bp		5.2	%	5.2	%	— bp
Total Operating Margin¹	2.6	%	3.1	%	(50) bp		4.6	%	5.5	%	(90) bp

Health Benefits Revenue Details

(In millions)	Three Months Ended September 30						Nine Months Ended September 30
	2025		2024		Change		2025		2024		Change
Health Benefits Operating Revenue
Commercial	$12,849		$11,639		10.4	%	$37,654		$34,965		7.7	%
Individual⁵	2,358		2,082		13.3	%	7,047		6,178		14.1	%
Medicare	11,138		9,385		18.7	%	33,990		27,741		22.5	%
Medicaid	14,166		13,063		8.4	%	42,120		39,182		7.5	%
Federal Employee Program	4,093		4,191		(2.3	)%	11,495		10,807		6.4	%
Total Health Benefits Operating Revenue¹	$42,246		$38,278		10.4	%	$125,259		$112,695		11.1	%

1.	See "Basis of Presentation."
2.	Operating Gain for the three and nine months ended September 30, 2024, included $72 and $191 million, respectively, of 2024 business dispositions and related items; including $53 and $141 million, respectively, for the Carelon Services segment; and $19 and $50 million, respectively, for the Health Benefits segment. Operating Gain for the three and nine months ended September 30, 2024, included $42 and $158 million, respectively, of transaction and integration related costs, $669 and $680 million, respectively, of litigation and settlement expenses, and $268 and $268 million, respectively, of business optimization charges, all of which reside in the Corporate & Other reportable segment.
3.	Operating Gain for the three and nine months ended September 30, 2025, included $49 and $182 million, respectively, of transaction and integration related costs, $4 and $19 million, respectively, of litigation and settlement expenses, and ($4) and ($4), respectively, of business optimization charges, all of which reside in the Corporate & Other reportable segment.
	Operating Gain for the three and nine months ended September 30, 2025, and September 30, 2024, included items excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
4.	The Individual business, including ACA products, is reported as part of Commercial Operating Revenue.
5.	"NM" = calculation not meaningful.
6.	"NM" = calculation not meaningful.

Elevance Health
Reconciliation of Medical Claims Payable

	Nine Months Ended September 30						Years Ended December 31
		2025			2024			2024			2023			2022
(In millions)	(Unaudited)			(Unaudited)

Gross medical claims payable, beginning of period	$	15,580		$	15,865		$	15,865		$	15,348		$	13,282
Ceded medical claims payable, beginning of period		(13	)		(7	)		(7	)		(6	)		(21	)
Net medical claims payable, beginning of period		15,567			15,858			15,858			15,342			13,261

Business combinations and purchase adjustments		344			—			143			—			133

Net incurred medical claims:
Current year		108,423			92,715			125,370			121,798			113,414
Prior years redundancies¹		(1,266	)		(1,610	)		(1,731	)		(1,571	)		(869	)
Total net incurred medical claims		107,157			91,105			123,639			120,227			112,545

Net payments attributable to:
Current year medical claims		93,545			79,220			110,930			107,146			98,997
Prior years medical claims		12,699			12,567			13,143			12,565			11,600
Total net payments		106,244			91,787			124,073			119,711			110,597

Net medical claims payable, end of period		16,824			15,176			15,567			15,858			15,342
Ceded medical claims payable, end of period		44			9			13			7			6
Gross medical claims payable, end of period²	$	16,868		$	15,185		$	15,580		$	15,865		$	15,348

Current year medical claims paid as a percentage of current year net incurred medical claims		86.3	%		85.4	%		88.5	%		88.0	%		87.3	%

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year		8.9	%		11.3	%		12.3	%		11.4	%		7.0	%

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims		1.0	%		1.3	%		1.4	%		1.4	%		0.9	%

1.	Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
2.	Excludes insurance lines other than short duration.

Elevance Health

GAAP Reconciliation

(Unaudited)

This document references non-GAAP measures, including "Adjusted Shareholders' Net Income," "Adjusted Shareholders' Net Income Per Share," "Adjusted EPS," "Adjusted Operating Gain," "Adjusted Operating Expense" and "Adjusted Operating Expense Ratio," which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health's financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures "Operating Revenue" and "Operating Gain/Loss," "Operating Margin" and "Adjusted EPS". Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health's operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein.

	Three Months Ended September 30								Nine Months Ended September 30
(In millions, except per share data)		2025			2024		Change			2025			2024		Change
Shareholders' net income	$	1,189		$	1,016		17.0	%	$	5,115		$	5,562		(8.0	)%
Add / (Subtract):
Amortization of other intangible assets		162			122					464			400
Transaction and integration related costs¹		49			42					182			158
Litigation and settlement expenses¹		4			669					19			680
Net losses on financial instruments		1			125					596			371
Business dispositions and related items²		—			72					—			191
(Gain) loss on sale of business		—			39					—			(201	)
Business optimization charges¹		(4	)		268					(4	)		268
Tax impact of non-GAAP adjustments		(52	)		(348	)				(307	)		(482	)
Net adjustment items		160			989					950			1,385
Adjusted shareholders' net income	$	1,349		$	2,005		(32.7	)%	$	6,065		$	6,947		(12.7	)%

Shareholders' earnings per diluted share	$	5.32		$	4.36		22.0	%	$	22.67		$	23.81		(4.8	)%
Add / (Subtract):
Amortization of other intangible assets		0.72			0.52					2.06			1.71
Transaction and integration related costs¹		0.22			0.18					0.81			0.68
Litigation and settlement expenses¹		0.02			2.87					0.08			2.91
Net losses on financial instruments		—			0.54					2.64			1.59
Business dispositions and related items²		—			0.31					—			0.82
(Gain) loss on sale of business		—			0.17					—			(0.86	)
Business optimization charges¹		(0.02	)		1.15					(0.02	)		1.15
Tax impact of non-GAAP adjustments		(0.23	)		(1.49	)				(1.36	)		(2.06	)
Net adjustment items		0.71			4.24					4.21			5.93
Adjusted shareholders' earnings per diluted share	$	6.03		$	8.60		(29.9	)%	$	26.88		$	29.74		(9.6	)%

	Three Months Ended September 30								Nine Months Ended September 30
(In millions)		2025			2024		Change			2025			2024		Change

Income before income tax expense	$	1,406		$	1,373		2.4	%	$	6,495		$	7,298		(11.0	)%
Net investment income		(625	)		(551	)				(1,701	)		(1,524	)
(Gain) loss on sale of business		—			39					—			(201	)
Net losses on financial instruments		1			125					596			371
Interest expense		351			300					1,036			845
Amortization of other intangible assets		162			122					464			400
Reportable segments operating gain	$	1,295		$	1,408		(8.0	)%	$	6,890		$	7,189		(4.2	)%

1.	Adjustment item resides in the Corporate & Other reportable segment.
2.	Adjustment item resides in the Health Benefits and Carelon Services reportable segments.

Elevance Health
GAAP Reconciliation
(Unaudited)

	Three Months Ended September 30								Nine Months Ended September 30
(In millions)		2025			2024		Change			2025			2024		Change

Reportable segments operating gain	$	1,295		$	1,408		(8.0	)%	$	6,890		$	7,189		(4.2	)%
Add / (Subtract):
Transaction and integration related costs¹		49			42					182			158
Litigation and settlement expenses¹		4			669					19			680
Business dispositions and related items²		—			72					—			191
Business optimization charges¹		(4	)		268					(4	)		268
Net adjustment items		49			1,051					197			1,297
Reportable segments adjusted operating gain	$	1,344		$	2,459		(45.3	)%	$	7,087		$	8,486		(16.5	)%

	Three Months Ended September 30								Nine Months Ended September 30
(In millions)		2025			2024		Change			2025			2024		Change
Operating expense	$	5,272		$	5,269		0.1	%	$	15,569		$	15,221		2.3	%
Add / (Subtract):
Transaction and integration related costs¹		(49	)		(42	)				(182	)		(158	)
Litigation and settlement expenses¹		(4	)		(669	)				(19	)		(680	)
Business dispositions and related items²		—			(72	)				—			(191	)
Business optimization charges¹		4			(268	)				4			(268	)
Net adjustment items		(49	)		(1,051	)				(197	)		(1,297	)
Adjusted operating expense	$	5,223		$	4,218		23.8	%	$	15,372		$	13,924		10.4	%

Operating revenue	$	50,087		$	44,719		12.0	%	$	148,273		$	130,215		13.9	%

Operating expense ratio		10.5	%		11.8	%	(130) bp			10.5	%		11.7	%	(120) bp
Adjusted operating expense ratio		10.4	%		9.4	%	100 bp			10.4	%		10.7	%	(30) bp


	Full Year 2025 Outlook
Shareholders' earnings per diluted share	Approximately $24.70
Add / (Subtract):
Amortization of other intangible assets³	$				2.98
Net losses on financial instruments³	$				2.90
Transaction and integration related costs^1,3	$				1.03
Litigation and settlement expenses^1,3	$				0.10
Business optimization charges¹	($				0.02	)
Tax impact of non-GAAP adjustments³	Approximately ($1.69)
Net adjustment items	$				5.30
Adjusted shareholders' earnings per diluted share	Approximately $30.00

1.	Adjustment item resides in the Corporate & Other reportable segment.
2.	Adjustment item resides in the Health Benefits and Carelon Services reportable segments.
3.	Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount.

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as "expect," "feel," "believe," "will," "may," "should," "anticipate," "intend," "estimate," "project," "forecast," "plan" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251020270589/en/

Investor Relations

Nathan Rich

Investor.Relations@elevancehealth.com

Media

Leslie Porras

Leslie.Porras@elevancehealth.com