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Elevance Health Hit By Medicaid Troubles, Trims Outlook

Elevance Health Inc. (NYSE:ELV) shares plummeted nearly 12% on Thursday after the health insurer reported second-quarter 2025 adjusted earnings that missed analyst expectations and significantly lowered its full-year guidance, overshadowing strong revenue growth.

The company reported second-quarter 2025 revenues of $49.42 billion, up 14.3% year over year, higher than the consensus of $48.34 billion. 

The increase was driven by higher premium yields in the Health Benefits segment, recently closed acquisitions, and growth in Medicare Advantage membership, partially offset by membership attrition in the Medicaid business.

Also Read: UnitedHealth, Centene Hit Hard By Guidance Shock, Trump’s Medicaid Push

Elevance Health reported adjusted earnings of $8.84 per share, missing the consensus of $9.20.

The benefit expense ratio was 88.9%, an increase of 260 basis points year over year, reflecting higher medical cost trend primarily in Medicaid business and ACA health plans.

The operating expense ratio was 10.1 percent, an improvement of 160 basis points. The adjusted operating expense ratio was 10%, an improvement ...