• In July 2025, Elevance Health reported a rise in quarterly revenue to US$49.78 billion but saw net income and earnings per share decrease compared to the previous year, and the board announced the addition of Steve Collis, former Cencora CEO, to strengthen financial oversight.
• This combination of leadership change and a revised earnings forecast highlights the company's proactive response to elevated medical costs and evolving healthcare utilization patterns.
• We'll explore how Elevance Health's lowered 2025 earnings outlook and push for AI-driven efficiencies may influence its long-term investment narrative.

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Elevance Health Investment Narrative Recap

To own Elevance Health, investors need to believe in the company’s ability to manage rising medical costs and regulatory shifts while leveraging technology to protect margins. The recent appointment of Steve Collis to the board and the lowered 2025 earnings outlook reinforce the short-term challenge posed by elevated costs, but do not materially impact the biggest near-term catalyst: Elevance’s execution of AI-enabled cost controls. The biggest risk right now remains persistent high utilization in Medicaid and ACA plans, which could limit earnings recovery if not contained.

Among recent company announcements, the Q2 2025 share repurchase update stands out. Elevance bought back US$379.09 million in shares last quarter, supporting shareholder returns even during margin pressure. Consistent buybacks add a layer of support in light of cost headwinds and upcoming regulatory policy decisions.

On the other hand, anyone considering Elevance’s stock should be aware that ongoing Medicaid cost inflation could persist for longer than many expect and...

Read the full narrative on Elevance Health (it's free!)

Elevance Health's outlook anticipates $229.6 billion in revenue and $7.4 billion in earnings by 2028. This projection is based on a 6.7% annual revenue growth rate and reflects a $2.0 billion increase in earnings from the current $5.4 billion.

Uncover how Elevance Health's forecasts yield a $372.33 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Private investor fair value estimates for Elevance Health in the Simply Wall St Community range from US$355 to US$1,620, across 11 views. With medical cost pressures now impacting outlooks, it is clear that opinions on the company’s prospects can widely differ; explore these perspectives to inform your own stance.

Explore 11 other fair value estimates on Elevance Health - why the stock might be worth just $355.00!

Build Your Own Elevance Health Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Elevance Health research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Elevance Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Elevance Health's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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