ELV · 10-Q · 2026Q2 · Full report

Operating Gain Decline

Elevance Health, Inc. · 2026-07-15 · Importance 70 · Surprise 56 · No source text

Total operating gain decreased materially — down 27.3% for the three months and 31.2% for the six months ended June 30, 2026 — with total operating gain of $1,763 million (three months) and $3,849 million (six months). Management attributes the decline principally to higher overall medical costs and increased targeted investments to strengthen workforce and accelerate technology adoption, partially offset by higher operating revenue from premium rate increases. Health Benefits operating margin weakened (2.1% vs. 3.8% prior-year for the three months), pressuring consolidated operating margin and operating cash generation from core insurance operations. The deterioration in operating gain was a principal driver of lower shareholders’ net income for the period.

Key facts

• Health Benefits operating gain decreased to $1,560 for the three months ended June 30, 2026 from $3,053 for the three months ended June 30, 2025, a decrease of $1,493 (42.6%). source
• Total operating gain for the three months ended June 30, 2026 was $1,763 compared to $2,425 for the three months ended June 30, 2025, a decrease of $662 (27.3%). source
• Total operating margin for the three months ended June 30, 2026 was 3.5% compared to 4.9% for the three months ended June 30, 2025, a decline of 140 basis points. source

Impact estimates