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Elevance Health posted first quarter results Tuesday that beat analyst expectations, with the Indianapolis-based health insurance giant also reaffirming its earnings forecast for the year amid industry uncertainty.
Revenue was $48.9 billion, up almost 14.8% from a year ago, while profit increased nearly 3%, to $2.18 billion, over the same period.
Elevance, which operates Anthem Blue Cross and Blue Shield, reported adjusted earnings per share of $11.97 for the first quarter ending March 31, better than the $11.48 analysts were expecting, according to Seeking Alpha.
In its earnings release before trading began Tuesday, the insurance giant also reiterated its full-year profit forecast of $34.15 to $34.85 per share. Shares ticked up slightly in premarket trading.
Weaker results posted this month by top rival UnitedHealth had raised concerns for others in the sector. Although United reported slight upticks in revenue and profit, the company revised its full-year profit outlook, dropping by nearly 50 cents of adjusted earnings per share.
Elevance reported higher medical costs for the quarter. Its medical loss ratio (the percentage of premium dollars paid out for medical costs) was 86.4%, an increase of 80 basis points year-over-year, reflecting higher Medicaid costs, according to the company.
In its earnings release, Elevance singled out its Carelon business unit, which includes behavioral health and care navigation. Operating revenue for Carelon was $16.7 billion for the quarter, an increase of 38% from the same period a year ago.
“In the first quarter, we made measurable progress reimagining the health care experience with personalized support, real-time digital solutions, and a whole-health model that improves outcomes and reduces cost,” Elevance CEO Gail Boudreaux said in a written statement. “Through Carelon and our broader enterprise, we’re delivering on our strategy to be a lifetime trusted health partner—and elevating health beyond health care.”
Elevance’s membership totaled 45.8 million on March 31, an increase of 99,000 from the end of 2024.
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