By Adriano Marchese
Elevance Health said it expects lower operating revenues in 2026 and a slip in enrollment, largely due to fewer enrollments in its Medicaid unit.
The managed healthcare and health insurance company on Wednesday said it expects a low single-digit decline in operating revenue in 2026, down from $197.6 billion in 2025.
Adjusted earnings per share is expected to be at least $25.50 a share, below forecasts of $26.71 a share, according to FactSet.
Elevance also forecasts enrollment to slip in 2026 to a range of 43.18 million to 43.88 million, down from 45.23 million in 2025, largely due to fewer enrollments in its Medicaid business, similar to 2025.
Chief Executive Gail Bourdeaux said that the company expects to return to at least 12% adjusted earnings-per-share growth in 2027 through pricing discipline and targeted investments in its diversified platform.
On Tuesday, Elevance's stock dropped 14% after reports that proposed 2027 Medicare rates came in far below expectations, sparking a broad selloff across major insurers, including a 21% decline in Humana's stock.
For the fourth quarter, Elevance posted net income that rose to $547 million, or $2.47 a share, compared with $418 million, or $1.81 a share, in the same quarter a year ago.
Adjusted earnings were $3.33 a share. According to FactSet, analysts were expecting $3.10 a share.
Total revenue rose to $49.75 billion from $45.44 billion, topping analyst expectations of a more modest rise to $49.71 billion.
Operating revenue in the quarter was up to $49.3 million from $45 million a year earlier.
On the membership front for the quarter, medical membership fell about 500,000, it said, reaching 45.23 million as of Dec.31. The change represents about a 1% decline year-over-year, driven by attrition in its Medicaid business.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
January 28, 2026 06:43 ET (11:43 GMT)
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