- Elevance Health (ELV, Financial) reported a 15.4% increase in operating revenue, reaching $48.8 billion for Q1 2025.
- The company returned $1.3 billion to shareholders through share repurchases and dividends.
- Medical membership rose by 99,000 to reach approximately 45.8 million members.
Elevance Health (ELV) delivered robust financial results for the first quarter of 2025, with operating revenue soaring by 15.4% year-over-year to $48.8 billion. This growth was driven by premium yield improvements and membership increases in Medicare Advantage and Individual ACA plans.
Despite the strong revenue growth, Elevance's profitability metrics indicated some margin pressures. The adjusted operating gain rose by a modest 4.1% to $3.3 billion, while the adjusted operating margin decreased from 7.4% to 6.7% compared to the previous year. This was primarily due to a higher Medicaid medical cost trend impacting the Health Benefits segment.
The company's Carelon segment emerged as a significant growth driver, with operating revenue increasing by 38% to $16.7 billion and operating gain rising by 34% to $1.1 billion. This performance was bolstered by acquisitions in home health and pharmacy services, as well as an expansion in CarelonRx product revenue.
During the first quarter, Elevance returned $1.3 billion in capital to shareholders, consisting of $880 million in share repurchases and $386 million in dividends. The company also declared a Q2 2025 dividend of $1.71 per share, payable on June 25, 2025.
Elevance maintained its full-year 2025 adjusted EPS guidance range of $34.15 to $34.85, reflecting confidence in achieving its annual financial targets despite the quarter's margin challenges. The company's strategic focus on enhancing its service offerings, particularly through the Carelon segment, points to a strategic shift towards healthcare services while managing traditional insurance business pressures.
