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Mar 31
Elevance Health Q1 2025 Earnings Report
Elevance Health reported strong revenue growth and solid earnings in the first quarter of 2025.
Key Takeaways
Elevance Health delivered a strong start to 2025 with 15.4% revenue growth, driven by higher premium yields, acquisitions, and expanding Medicare Advantage and ACA memberships. EPS and net income remained stable, while Carelon posted significant year-over-year growth.
Operating revenue rose to $48.8B, a 15.4% increase YoY.
Adjusted EPS climbed to $11.97, up from $10.83 in Q1 2024.
Carelon segment revenue grew 38% YoY due to acquisitions and Rx product growth.
Medical membership stood at 45.83 million, slightly down YoY but up QoQ.
Elevance Health
Elevance Health
Elevance Health Revenue by Segment
Revenue by Segment
Health Benefits Revenue
CapyFin.comCarelonRx Revenue
CapyFin.comCarelon Services Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
Elevance Health reaffirmed its full-year 2025 adjusted EPS guidance range of $34.15 to $34.85, highlighting confidence in revenue growth and cost management despite Medicaid pressure.
Positive Outlook
- Reaffirmed adjusted EPS guidance of $34.15 to $34.85.
- Expected continued growth in Medicare Advantage and ACA plans.
- Acquisitions to further boost CarelonRx and Carelon Services.
- Improving operating efficiency despite tax impacts.
- Stable medical claims reserves and healthy cash flow outlook.
Challenges Ahead
- Medicaid membership declined due to attrition.
- Lower operating margin YoY due to cost pressures.
- Reduced cash flow from operations due to timing effects.
- Benefit expense ratio increased to 86.4%.
- Headwinds from known customer transitions in commercial fee-based business.