ELV · 10-Q · 2026Q2 · Full report

CarelonRx Outsourcing and Volume/Cost Trends

Elevance Health, Inc. · 2026-07-15 · Importance 64 · Surprise 42 · Matches filing data

CarelonRx provides comprehensive pharmacy services (home delivery, specialty, claims adjudication, formulary management, infusion/injectable therapies) to affiliated and unaffiliated customers and delegates certain core services to CVS under an agreement through December 31, 2027 with a three-year extension option. CarelonRx operating revenue increased to $21,850 million for the six months ended June 30, 2026 (up 5.7% YoY) while adjusted scripts declined ~2.9% (80.9 vs. 83.3 million). Cost of products sold increased due to higher cost per prescription driven by pricing impacts and product mix despite lower volumes, putting pressure on gross margins. The CVS delegation and contract expiry/extension features create outsourcing dependence and potential operational/contract risk for the pharmacy services business.

Key facts

• Cost of products sold for the three months ended June 30, 2026 was $5,492 compared to $5,293 for the three months ended June 30, 2025, an increase of $199 (3.8%). source
• CarelonRx operating revenue for the three months ended June 30, 2026 was $11,250 compared to $10,643 for the three months ended June 30, 2025, an increase of $607 (5.7%). source
• CarelonRx Quarterly Adjusted Scripts were 80.9 million for the quarter ended June 30, 2026 and 83.3 million for the quarter ended June 30, 2025, a decrease of 2.4 million (2.9%). source
• Cost of products sold increased as a result of a higher cost per prescription in 2026, reflecting pricing impacts and product mix, despite lower adjusted prescription volumes. source
• CarelonRx operating gain increased (improved specialty pharmacy profitability) for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. source

Impact estimates