Elevance Health — Jan 28, 2026 release

E A R N I N G S R E L E A S E ELEVANCE HEALTH REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS; SETS FULL YEAR 2026 OUTLOOK • 4Q 2025 operating revenue of $49.3 billion; FY 2025 of $197.6 billion • 4Q 2025 diluted EPS 1 of $2.47; adjusted diluted EPS 2 of $3.33 • FY 2025 diluted EPS 1 of $25.21; adjusted diluted EPS 2 of $30.29 • Projected FY 2026 GAAP diluted EPS 1 to be at least $22.30 • Projected FY 2026 adjusted diluted EPS 2 to be at least $25.50 • Returned $4.1 billion of capital to shareholders in 2025 • Reaffirming long-term earnings algorithm; recalibrating segment margin targets Indianapolis, IN - January 28, 2026 - Elevance Health, Inc. (NYSE: ELV) reported fourth quarter and full year 2025 results. "Elevance Health delivered fourth quarter results in line with our outlook, reflecting disciplined execution in a dynamic environment. As we enter 2026, our focus is on advancing affordability and making healthcare easier to access and navigate for the members we serve. Through pricing discipline and targeted investments, we are strengthening the earnings power of our diversified platform and remain confident in our ability to return to at least 12% adjusted EPS growth in 2027." Gail K. Boudreaux President and Chief Executive Officer 1. Earnings per diluted share ("EPS"). 2. Refer to GAAP reconciliation tables on pages 13 and 14 herein for reconciliation of GAAP to adjusted measures. 1 Elevance Health Consolidated Enterprise Highlights (Unaudited) (In billions) Three Months Ended Twelve Months Ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Operating Revenue 1 $49.3 $45.0 $197.6 $175.2 Operating Gain 1,2 $0.3 $0.7 $7.2 $7.9 Adjusted Operating Gain 1,3 $0.4 $0.8 $7.5 $9.3 Operating Margin 1 0.6 % 1.5 % 3.6 % 4.5 % Adjusted Operating Margin 1,3 0.8 % 1.9 % 3.8 % 5.3 % 1. See “Basis of Presentation” on page 5 herein. 2. Operating Gain for the three and twelve months ended December 31, 2025, and December 31, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein. 3. Adjusted Operating Gain for the three and twelve months ended December 31, 2025, and December 31, 2024, excludes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein. Operating revenue was $49.3 billion in the fourth quarter of 2025, an increase of $4.3 billion, or 10 percent compared to the prior year quarter. Operating revenue was $197.6 billion in 2025, an increase of $22.4 billion, or 13 percent. The increase in revenue for the quarter and year was driven by higher premium yields in our Health Benefits segment, contributions from acquisitions, and growth in Medicare Advantage membership, partially offset by membership attrition in our Medicaid business. The benefit expense ratio was 93.5 percent in the fourth quarter, an increase of 110 basis points compared to the prior year period, reflecting higher medical cost trend primarily in our Affordable Care Act health plans and heightened Medicare Part D seasonality driven by Inflation Reduction Act changes. For the year, our benefit expense ratio was 90.0 percent, an increase of 150 basis points year over year, driven by elevated medical cost trends. Days in Claims Payable was 41.3 days as of December 31, 2025, a decrease of 0.1 days from September 30, 2025, and a decrease of 1.9 days compared to December 31, 2024. The operating expense ratio was 11.0 percent in the fourth quarter and 10.6 percent for the full year. On an adjusted basis, the corresponding operating expense ratios were 10.8 percent and 10.5 percent. We maintained expense discipline while investing to support and strengthen our workforce, scale Carelon's capabilities, and accelerate technology adoption across the enterprise. Cash Flow & Balance Sheet Operating cash flow was $4.3 billion in 2025, approximately 0.8 times GAAP net income. As of December 31, 2025, cash and investments at the parent company totaled approximately $2.6 billion. During the fourth quarter of 2025, the Company repurchased 1.4 million shares of its common stock for $471 million, at a weighted average price of $335.64, and paid a quarterly dividend of $1.71 per share, representing a distribution of cash totaling $377 million. As of December 31, 2025, the Company had approximately $6.7 billion of Board approved share repurchase authorization remaining. 2 Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard ® , Medicare, Medicaid, and Federal Employee Program businesses. Health Benefits Reportable Segment Highlights (Unaudited) (In billions) Three Months Ended Twelve Months Ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Operating Revenue 1 $41.8 $37.6 $167.1 $150.3 Operating Gain 1,2 ($0.2) $0.2 $4.2 $6.2 Adjusted Operating Gain 1,3 ($0.2) $0.2 $4.2 $6.3 Operating Margin 1 (0.5 %) 0.6 % 2.5 % 4.2 % Adjusted Operating Margin 1 (0.5 %) 0.6 % 2.5 % 4.2 % 1. See “Basis of Presentation” on page 5 herein. 2. Operating Gain for the three and twelve months ended December 31, 2024 includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein. 3. Adjusted Operating Gain for three and twelve months ended December 31, 2024 excludes $16 and $66 million, respectively, of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Health Benefits segment. Health Benefits segment operating revenue was $41.8 billion in the fourth quarter of 2025, an increase of $4.3 billion, or 11 percent compared to the fourth quarter of 2024. Operating revenue was $167.1 billion in 2025, an increase of $16.8 billion, or 11 percent. The increases for the quarter and year were driven primarily by higher premium yields, contributions from acquisitions, and growth in our Medicare Advantage membership, partially offset by membership attrition in our Medicaid business. The Company reported an adjusted operating loss of $0.2 billion in the fourth quarter of 2025 and an adjusted operating gain of $4.2 billion for the full year. Adjusted operating results in both periods were impacted primarily by higher medical cost trend. Medical membership totaled approximately 45.2 million as of December 31, 2025, a decrease of 0.5 million, or 1 percent, year over year, driven by attrition in our Medicaid business. 3 Carelon is comprised of CarelonRx and Carelon Services. Carelon Reportable Segment Highlights (Unaudited) (In billions) Three Months Ended Twelve Months Ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Operating Revenue 1,2 $18.7 $14.7 $71.7 $53.9 Operating Gain 1,3 $0.6 $0.6 $3.4 $2.9 Adjusted Operating Gain 1,4,5 $0.6 $0.6 $3.4 $3.1 Operating Margin 1 3.1 % 3.9 % 4.7 % 5.4 % Adjusted Operating Margin 1 3.3 % 4.4 % 4.8 % 5.8 % 1. See “Basis of Presentation” on page 5 herein. 2. Operating revenue for the three and twelve months ended December 31, 2024 includes $0.2 and $0.8 billion, respectively, of revenue related to 2024 business dispositions and related items that have been excluded from adjusted operating gain. 3. Operating Gain for the three and twelve months ended December 31, 2025, and December 31, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein. 4. Adjusted Operating Gain for three and twelve months ended December 31, 2025 excludes $38 million of 2025 business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment. 5. Adjusted Operating Gain for the three and twelve months ended December 31, 2024 excludes $74 and $215 million, respectively, of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment. Operating revenue for Carelon was $18.7 billion in the fourth quarter of 2025, an increase of $3.9 billion, or 27 percent compared to the prior year period, driven by growth in CarelonRx product revenue, the expansion of Carelon Services risk-based solutions, and the acquisition of CareBridge. Operating revenue was $71.7 billion in 2025, an increase of $17.8 billion, or 33 percent. Adjusted operating gain for Carelon totaled $0.6 billion in the fourth quarter, approximately flat year over year. On a full year basis, adjusted operating gain was $3.4 billion in 2025, an increase of $0.3 billion, or 10 percent, driven by improved CarelonRx performance and growth in Carelon Services risk-based solutions. 4 Quarterly Dividend On January 27, 2026, the Audit Committee of the Company's Board of Directors declared a first quarter 2026 dividend to shareholders of $1.72 per share. The first quarter dividend is payable on March 25, 2026 to shareholders of record at the close of business on March 10, 2026. About Elevance Health Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 104 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn. Conference Call and Webcast Management will host a conference call and webcast today at 8:30 a.m. Eastern Standard Time (“EST”) to discuss the company’s fourth quarter and full year 2025 results and 2026 outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers: 888-947-9963 (Domestic) 888-566-0046 (Domestic Replay) 312-470-0178 (International) 203-369-3677 (International Replay) The access code for today's conference call is 3972058 . There is no access code for the replay. The replay will be available from 11:30 a.m. EST today, until the end of the day on February 27, 2026. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call. Basis of Presentation 1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to pages 13 and 14 for the GAAP reconciliation tables. 2. Operating margin is defined as operating gain divided by operating revenue. Elevance Health Contacts: Investor Relations              Media Nathan Rich Leslie Porras Investor.Relations@elevancehealth.com Leslie.Porras@elevancehealth.com 5 Elevance Health Earnings Release Financial Schedules and Supplementary Information Quarter & Year Ended December 31, 2025 • Membership and Other Metrics • Quarterly & Full Year Consolidated Statements of Income • Condensed Consolidated Balance Sheet • Condensed Consolidated Statement of Cash Flows • Supplemental Financial Information - Reportable Segments • Supplemental Financial Information - Reconciliation of Medical Claims Payable • Reconciliation of Non-GAAP Financial Measures • Financial Guidance Summary • Membership Guidance Summary 6 Elevance Health Membership and Other Metrics (Unaudited)   Change from Medical Membership (in thousands) December 31, 2025 December 31, 2024 September 30, 2025 December 31, 2024 September 30, 2025 Individual 1,307  1,287  1,354  1.6 % (3.5 %) Employer Group Risk-Based 3,617  3,713  3,616  (2.6 %) — % Commercial Risk-Based 4,924  5,000  4,970  (1.5 %) (0.9 %) BlueCard ® 6,509  6,630  6,394  (1.8 %) 1.8 % Employer Group Fee-Based 20,583  20,569  20,608  0.1 % (0.1 %) Commercial Fee-Based 27,092  27,199  27,002  (0.4 %) 0.3 % Medicare Advantage 2,230  2,066  2,245  7.9 % (0.7 %) Medicare Supplement 882  891  877  (1.0 %) 0.6 % Total Medicare 3,112  2,957  3,122  5.2 % (0.3 %) Medicaid 8,500  8,917  8,645  (4.7 %) (1.7 %) Federal Employee Program 1,604  1,661  1,630  (3.4 %) (1.6 %) Total Medical Membership 45,232   45,734   45,369   (1.1 %) (0.3 %) Other Metrics (in millions) CarelonRx Quarterly Adjusted Scripts 88.5  82.9  85.0  6.8 % 4.1 % Carelon Services Consumers Served 91.8  101.1  97.6 (9.2 %) (5.9 %) 7 Elevance Health Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended   December 31 Twelve Months Ended   December 31 2025 2024 Change 2025 2024 Change Revenues Premiums $ 40,690 $ 36,245 12.3% $ 164,639 $ 144,166 14.2% Product revenue 6,460 6,714 (3.8%) 24,470 22,630 8.1% Service fees 2,161 2,030 6.5% 8,475 8,408 0.8% Total operating revenue 49,311 44,989 9.6% 197,584 175,204 12.8% Net investment income 493 527 (6.5%) 2,194 2,051 7.0% Net losses on financial instruments (57) (74) NM (653) (445) NM Gain on sale of business — — NM — 201 NM Total revenues 49,747 45,442 9.5% 199,125 177,011 12.5% Expenses Benefit expense 38,065 33,500 13.6% 148,223 127,567 16.2% Cost of products sold 5,522 6,012 (8.2%) 21,178 19,750 7.2% Operating expense 5,415 4,804 12.7% 20,984 20,025 4.8% Interest expense 366 340 7.6% 1,402 1,185 18.3% Amortization of other intangible assets 164 180 (8.9%) 628 580 8.3% Total expenses 49,532 44,836 10.5% 192,415 169,107 13.8% Income before income tax expense 215 606 (64.5%) 6,710 7,904 (15.1%) Income tax expense (benefit) (331) 193 NM 1,049 1,933 (45.7%) Net income 546 413 32.2% 5,661 5,971 (5.2%) Net loss attributable to noncontrolling interests 1 5 NM 1 9 NM Shareholders' net income $ 547 $ 418 30.9% $ 5,662 $ 5,980 (5.3%) Shareholders' earnings per diluted share $ 2.47 $ 1.81 36.5% $ 25.21 $ 25.68 (1.8%) Diluted shares 221.8 231.1 (4.0%) 224.6 232.9 (3.6%) Benefit expense as a percentage of premiums 93.5 % 92.4 % 110  bp 90.0 % 88.5 % 150  bp Operating expense as a percentage of total operating revenue 11.0 % 10.7 % 30  bp 10.6 % 11.4 % (80) bp Income before income tax expense as a percentage of total revenue 0.4 % 1.3 % (90) bp 3.4 % 4.5 % (110) bp "NM" = calculation not meaningful 8 Elevance Health Condensed Consolidated Balance Sheet (In millions) December 31, 2025 December 31, 2024 Assets (Unaudited) Current assets: Cash and cash equivalents $9,491 $8,288 Fixed maturity and equity securities 26,624  26,393  Premium and other receivables 21,542  19,071  Other current assets 5,344  4,700  Assets held for sale —  490  Total current assets 63,001   58,942   Long-term investments 11,960  10,784  Property and equipment, net 4,679  4,652  Goodwill and other intangible assets 39,544  40,371  Other noncurrent assets 2,310  2,140  Total assets $121,494 $116,889 Liabilities and equity Liabilities Current liabilities: Medical claims payable $17,084 $15,746 Short-term borrowings 150  365  Current portion of long-term debt 1,099  1,649  Other current liabilities 22,702  22,668  Liabilities held for sale —  153  Total current liabilities 41,035   40,581   Long-term debt, less current portion 30,797  29,218  Other noncurrent liabilities 5,636  5,664  Total liabilities 77,468   75,463   Total shareholders’ equity 43,882   41,315   Noncontrolling interests 144  111  Total equity 44,026   41,426   Total liabilities and equity $121,494 $116,889 9 Elevance Health Condensed Consolidated Statement of Cash Flows (Unaudited) (In millions) Twelve Months Ended December 31 2025 2024 Operating activities Net income $ 5,661  $ 5,971  Depreciation and amortization 1,546  1,393  Share-based compensation 276  191  Changes in operating assets and liabilities (3,680) (1,719) Other non-cash items 487  (28) Net cash provided by operating activities 4,290   5,808   Investing activities Proceeds from sale of investments, net of maturities 69  586  Net purchases of subsidiaries, net of cash acquired/sold 88  (4,446) Purchases of property and equipment (1,116) (1,256) Other, net (385) (51) Net cash used in investing activities (1,344) (5,167) Financing activities Net change in short-term and long-term borrowings 629  6,200  Repurchase and retirement of common stock (2,605) (2,900) Cash dividends (1,529) (1,508) Other, net 1,767  (599) Net cash provided by (used in) financing activities (1,738) 1,193   Effect of foreign exchange rates on cash and cash equivalents (5) (6) Change in cash and cash equivalents 1,203   1,828   Cash and cash equivalents at beginning of period 8,288   6,526   Cash and equivalents included in assets held for sale at end of period —   (66) Cash and cash equivalents at end of period $9,491 $8,288 10 REPORTABLE SEGMENTS Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard ® , Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments). Elevance Health Reportable Segment Details (Unaudited) (In millions) Three Months Ended December 31 Twelve Months Ended December 31 2025 2024 Change 2025 2024 Change Operating Revenue Health Benefits $41,835 $37,580 11.3 % $167,094 $150,275 11.2 % CarelonRx 11,644 9,977 16.7 % 43,400 35,961 20.7 % Carelon Services 7,015 4,769 47.1 % 28,316 17,961 57.7 % Corporate & Other (83) (14) NM 6 463 309 49.8 % Eliminations (11,100) (7,323) NM 6 (41,689) (29,302) NM 6 Total Operating Revenue 1 $49,311 $44,989 9.6 % $197,584 $175,204 12.8  % Operating Gain (Loss) Health Benefits 2 ($220) $207 NM 6 $4,158 $6,243 (33.4 %) CarelonRx 3 724 533 35.8 % 2,418 2,172 11.3 % Carelon Services 2,3 (150) 35 NM 6 960 717 33.9 % Corporate & Other 2,3 (45) (102) NM 6 (337) (1,270) NM 6 Total Operating Gain 1,4 $309 $673 (54.1 %) $7,199 $7,862 (8.4 %) Operating Margin Health Benefits (0.5 %) 0.6 % (110) bp 2.5 % 4.2 % (170) bp CarelonRx 6.2 % 5.3 % 90 bp 5.6 % 6.0 % (40) bp Carelon Services (2.1 %) 0.7 % (280) bp 3.4 % 4.0 % (60) bp Total Operating Margin 1 0.6 % 1.5 % (90) bp 3.6 % 4.5 % (90) bp Health Benefits Revenue Details (In millions) Three Months Ended December 31 Twelve Months Ended December 31 2025 2024 Change 2025 2024 Change Health Benefits Operating Revenue Commercial $12,747 $11,851 7.6 % $50,401 $46,816 7.7 % Individual 5 2,248 2,117 6.2 % 9,295 8,295 12.1 % Medicare 10,762 9,054 18.9 % 44,752 36,795 21.6 % Medicaid 14,500 12,755 13.7 % 56,620 51,937 9.0 % Federal Employee Program 3,826 3,920 (2.4 %) 15,321 14,727 4.0 % Total Health Benefits Operating Revenue 1 $41,835 $37,580 11.3 % $167,094 $150,275 11.2 % 1. See “Basis of Presentation” on page 5 herein. 2. Operating Gain for the three and twelve months ended December 31, 2024 included $90 and $281 million, respectively, of 2024 business dispositions and related items; including $74 and $215 million, respectively, for the Carelon Services segment; and $16 and $66 million, respectively, for the Health Benefits segment. Operating Gain for the three and twelve months ended December 31, 2024 included $66 and $224 million, respectively, of transaction and integration related costs, $12 and $692 million, respectively, of litigation and settlement expenses, and $0 and $268 million, respectively, of business optimization charges, all of which reside in the Corporate & Other reportable segment. 3. Operating Gain for the three and twelve months ended December 31, 2025 included $41 million of 2025 business dispositions and related items; including $45 million for the CarelonRx segment; ($7) million for the Carelon Services segment; and $3 million for the Corporate & Other segment. Operating Gain for the three and twelve months ended December 31, 2025 included $54 and $236 million, respectively, of transaction and integration related costs, $5 and $24 million, respectively, of litigation and settlement expenses, and ($34) and ($38) million, respectively, of business optimization charges, all of which reside in the Corporate & Other reportable segment. 4. Operating Gain for the three and twelve months ended December 31, 2025, and December 31, 2024, included items excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein. 5. The Individual business, including ACA products, is reported as part of Commercial Operating Revenue. 6. "NM" = calculation not meaningful. 11 Elevance Health Reconciliation of Medical Claims Payable Years Ended December 31 2025 2024 2023 (In millions) (Unaudited) Gross medical claims payable, beginning of year $ 15,580  $ 15,865  $ 15,348  Ceded medical claims payable, beginning of year (13) (7) (6) Net medical claims payable, beginning of year 15,567  15,858  15,342  Business combinations and purchase adjustments 344  143  —  Net incurred medical claims: Current year 145,566  125,370  121,798  Prior years redundancies 1 (1,290) (1,731) (1,571) Total net incurred medical claims 144,276  123,639  120,227  Net payments attributable to: Current year medical claims 130,265  110,930  107,146  Prior years medical claims 13,141  13,143  12,565  Total net payments 143,406  124,073  119,711  Net medical claims payable, end of year 16,781  15,567  15,858  Ceded medical claims payable, end of year 48  13  7  Gross medical claims payable, end of year 2 $ 16,829  $ 15,580  $ 15,865  Current year medical claims paid as a percentage of current year net incurred medical claims 89.5  % 88.5 % 88.0 % Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year 9.0  % 12.3 % 11.4 % Prior year redundancies in the current year as a percentage of prior year net incurred medical claims 1.0  % 1.4 % 1.4 % 1. Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated. 2. Excludes insurance lines other than short duration. 12 Elevance Health GAAP Reconciliation (Unaudited) This document references non-GAAP measures, including “Adjusted Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted Operating Expense” and “Adjusted Operating Expense Ratio,” which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain/Loss,” “Operating Margin” and “Adjusted EPS”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. Three Months Ended December 31 Twelve Months Ended December 31 (In millions, except per share data) 2025 2024 Change 2025 2024 Change Shareholders' net income $ 547   $ 418   30.9 % $ 5,662   $ 5,980   (5.3 %) Add / (Subtract): Amortization of other intangible assets 164  180  628  580  Net losses on financial instruments 57  74  653  445  Transaction and integration related costs 1 54  66  236  224  Business dispositions and related items 2 41  90  41  281  Litigation and settlement expenses 1 5  12  24  692  Gain on sale of business —  —  —  (201) Business optimization charges 1 (34) —  (38) 268  Tax impact of non-GAAP adjustments (95) (93) (402) (575) Net adjustment items 192  329  1,142  1,714  Adjusted shareholders' net income $ 739   $ 747   (1.1 %) $ 6,804   $ 7,694   (11.6 %) Shareholders' earnings per diluted share $ 2.47   $ 1.81   36.5 % $ 25.21   $ 25.68   (1.8 %) Add / (Subtract): Amortization of other intangible assets 0.74  0.78  2.80  2.49  Net losses on financial instruments 0.26  0.32  2.91  1.91  Transaction and integration related costs 1 0.24  0.29  1.05  0.96  Business dispositions and related items 2 0.18  0.39  0.18  1.21  Litigation and settlement expenses 1 0.02  0.05  0.11  2.97  Gain on sale of business —  —  —  (0.86) Business optimization charges 1 (0.15) —  (0.17) 1.15  Tax impact of non-GAAP adjustments (0.43) (0.40) (1.79) (2.47) Net adjustment items 0.86  1.42  5.08  7.36  Adjusted shareholders' earnings per diluted share $ 3.33   $ 3.23   3.1 % $ 30.29   $ 33.04   (8.3 %) Three Months Ended December 31 Twelve Months Ended December 31 (In millions) 2025 2024 Change 2025 2024 Change Income before income tax expense $ 215   $ 606   (64.5 %) $ 6,710   $ 7,904   (15.1 %) Net investment income (493) (527) (2,194) (2,051) Gain on sale of business —  —  —  (201) Net losses on financial instruments 57  74  653  445  Interest expense 366  340  1,402  1,185  Amortization of other intangible assets 164  180  628  580  Reportable segments operating gain $ 309   $ 673   (54.1 %) $ 7,199   $ 7,862   (8.4 %) 1. Adjustment item resides in the Corporate & Other reportable segment. 2. Adjustment item resides in the Health Benefits, CarelonRx, Carelon Services, and Corporate & Other reportable segments. 13 Elevance Health GAAP Reconciliation (Unaudited) Three Months Ended December 31 Twelve Months Ended December 31 (In millions) 2025 2024 Change 2025 2024 Change Reportable segments operating gain $ 309   $ 673   (54.1 %) $ 7,199   $ 7,862   (8.4 %) Add / (Subtract): Transaction and integration related costs 1 54  66  236  224  Business dispositions and related items 2 41  90  41  281  Litigation and settlement expenses 1 5  12  24  692  Business optimization charges 1 (34) —  (38) 268  Net adjustment items 66  168  263  1,465  Reportable segments adjusted operating gain $ 375   $ 841   (55.4 %) $ 7,462   $ 9,327   (20.0 %) Three Months Ended December 31 Twelve Months Ended December 31 (In millions) 2025 2024 Change 2025 2024 Change Operating expense $ 5,415   $ 4,804   12.7 % $ 20,984   $ 20,025   4.8 % Add / (Subtract): Transaction and integration related costs 1 (54) (66) (236) (224) Business dispositions and related items 2 (41) (90) (41) (281) Litigation and settlement expenses 1 (5) (12) (24) (692) Business optimization charges 1 34  —  38  (268) Net adjustment items (66) (168) (263) (1,465) Adjusted operating expense $ 5,349   $ 4,636   15.4 % $ 20,721   $ 18,560   11.6 % Operating revenue $ 49,311 $ 44,989 9.6 % $ 197,584 $ 175,204 12.8 % Operating expense ratio 11.0  % 10.7  % 30 bp 10.6  % 11.4  % (80) bp Adjusted operating expense ratio 10.8  % 10.3  % 50 bp 10.5  % 10.6  % (10) bp Full Year 2026 Outlook Shareholders' earnings per diluted share At least $22.30 Add / (Subtract): Amortization of other intangibles 3 $2.00  Net losses on financial instruments 3 $1.15  Transaction and integration related costs 1,3 $0.90  Litigation and settlement expenses 1,3 $0.10  Tax impact of non-GAAP adjustments 3 Approximately ($0.95) Net adjustment items $3.20  Adjusted shareholders' earnings per diluted share At least $25.50 1. Adjustment item resides in the Corporate & Other reportable segment. 2. Adjustment item resides in the Health Benefits, CarelonRx, Carelon Services, and Corporate & Other reportable segments. 3. Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount. 14 Elevance Health Financial Guidance Summary (Unaudited) Full Year 2025 Actual Full Year 2026 Outlook Premium Revenue $164.6 billion Mid single digit decline Product Revenue $24.5 billion Mid single digit growth Service Fees $8.5 billion Mid single digit growth Total Operating Revenue $197.6 billion Low single digit decline Benefit Expense Ratio 90.0% 90.2% +/- 50 bps Adjusted Operating Expense Ratio 10.5% 10.6% +/- 50 bps Adjusted Operating Gain $7.5 billion At least $6.8 billion Other Pre-Tax Items: Net Investment income $2,194 million $1,875 million Interest Expense ($1,402) million ($1,530) million Amortization of Intangible Assets ($628) million ($440) million Adjusted Effective Tax Rate 17.6% 22.0% - 24.0% GAAP Diluted EPS $25.21 At least $22.30 Adjusted Diluted EPS $30.29 At least $25.50 Diluted Shares 224.6 million 219-220 million Operating Cash Flow $4.3 billion At least $5.5 billion Segment Level Guidance Metrics Operating Revenue Growth Rate Health Benefits $167.1 billion Low single digit decline CarelonRx $43.4 billion Low single digit growth Carelon Services $28.3 billion Low single digit growth GAAP Operating Margin vs. 2025 Health Benefits 2.5% (50) - (25) bps CarelonRx 5.6% (25) - 0 bps Carelon Services 3.4% 0 - 25 bps 15 Elevance Health Membership Guidance Summary (Unaudited) Full Year 2025 Actual Full Year 2026 Outlook Year-End Medical Enrollment (in 000s) Commercial Fee-Based 27,092 27,200 - 27,500 Commercial Risk-Based 4,924 4,150 - 4,250 Medicaid 8,500 7,650 - 7,850 Medicare Advantage 2,230 1,775 - 1,875 Medicare Supplement 882 Approximately 850 Federal Employee Program 1,604 Approximately 1,550 Fee-Based 27,092 27,200 - 27,500 Risk-Based 18,140 15,975 - 16,375 Total 45,232 43,175 - 43,875 16 Forward-Looking Statements This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan,” “potential,” “predict” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems; failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity or sentiment related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations. 17