Elevance Health's stock plummeted 11.58% during intraday trading on Wednesday, following the release of its second-quarter financial results. The sharp decline came despite the health insurer reporting quarterly earnings that exceeded Wall Street's expectations.

While the company posted adjusted earnings per share of $7.45 for the quarter, beating the consensus estimate of $6.21, investors were disappointed by the modest increase in its full-year profit forecast. Elevance raised its 2026 adjusted EPS guidance to at least $27, up only $0.25 from its previous target of at least $26.75, a revision that fell short of lofty market expectations. Analysts noted that the outperformance in the quarter was not fully reflected in the guidance increase.

Additional pressure came from a reported decline in medical membership, particularly in Medicare Advantage and Medicaid segments, alongside a higher benefit-expense ratio indicating elevated medical costs. Furthermore, the company's CEO stated on a conference call that Elevance expects to exit additional Medicaid markets over the next 12 to 18 months, raising concerns about future growth in its government business.