Elevance Health (ELV) strong Q2 results and higher 2026 guidance set the stage for improved long-term expectations, Truist Securities said Thursday in a report.

Truist increased its 2026 EPS estimate to $27.12 from $26.84 and lifted its 2027 forecast to $29.14 from $29 after incorporating the Q2 beat and updated guidance.

Q2 results topped expectations on revenue, medical loss ratio and adjusted EPS, helped by strong Medicare Advantage and Affordable Care Act performance, and Medicaid results were in line with management's expectations, the report said.

Carelon, the health-services arm, continues to generate steady growth and cross-selling opportunities, with ongoing investments expected to improve operations across several areas, Truist said.

Elevance raised its full-year cash-flow-from-operations guidance to at least $6 billion from $5.5 billion.

Truist reiterated its buy rating on Elevance stock and maintained its $475 price target.

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