Elevance Health — Apr 22, 2026 release

13 Elevance Health GAAP Reconciliation (Unaudited) Three Months Ended March 31 (In millions) 2026 2025 Change Reportable segments operating gain $ 2,086   $ 3,170   (34.2) % Add / (Subtract): Accrual related to CMS notice 1,2 935  —  Business optimization program charges 1 129  —  Transaction and integration related costs 1 47  80  Litigation and settlement expenses 1 7  5  Net adjustment items 1,118  85  Reportable segments adjusted operating gain $ 3,204   $ 3,255   (1.6) % Operating revenue $ 49,494 $ 48,765 1.5  % Operating margin 4.2  % 6.5  % (230) bp Adjusted operating margin 6.5  % 6.7  % (20) bp Three Months Ended March 31 (In millions) 2026 2025 Change Operating expense $ 6,330   $ 5,300   19.4  % Add / (Subtract): Accrual related to CMS notice 1,2 (935) —  Business optimization program charges 1 (129) —  Transaction and integration related costs 1 (47) (80) Litigation and settlement expenses 1 (7) (5) Net adjustment items (1,118) (85) Adjusted operating expense $ 5,212   $ 5,215   (0.1) % Operating revenue $ 49,494 $ 48,765 1.5  % Operating expense ratio 12.8  % 10.9  % 190 bp Adjusted operating expense ratio 10.5  % 10.7  % (20) bp Full Year 2026 Outlook Shareholders' earnings per diluted share At least $19.85 Add / (Subtract): Accrual related to CMS notice 1,2 $4.24  Amortization of other intangible assets 3 $2.00  Net losses on financial instruments 3 $1.15  Transaction and integration related costs 1,3 $0.90  Business optimization program charges 1 $0.59  Litigation and settlement expenses 1,3 $0.10  Tax impact of non-GAAP adjustments 3 Approximately ($2.08) Net adjustment items $6.90  Adjusted shareholders' earnings per diluted share At least $26.75 1. Adjustment item resides in the Corporate & Other reportable segment. 2. Adjustment item represents the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026. 3. Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount. 14 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,” “fe