ELV · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Elevance Health, Inc. · 2026-07-15 · Importance 52 · Surprise 42 · No source text

Operating expense increased meaningfully in the periods presented, driven by targeted investments to support workforce and technology adoption, increased expenses to address regulatory matters and higher premium tax expenses and assessments. For the six months ended June 30, 2026, Elevance also cites the loss contingency accrual related to Medicare Advantage risk adjustment resubmission and incremental Transformation Program costs as contributors to higher operating expense and operating expense ratio. Management attributes the elevated operating expense ratio to these investments, regulatory-related expenses and Transformation-related initiatives. These trends are expected to influence near-term expense management and efficiency efforts across the enterprise.

Key facts

• Operating expense for the three months ended June 30, 2026 was $5,547 compared to $4,997 for the three months ended June 30, 2025, an increase of $550 (11.0%). source
• Our operating expense ratio was 11.1% for the three months ended June 30, 2026 and 10.1% for the three months ended June 30, 2025, an increase of 100 basis points. source
• Total operating revenue for the three months ended June 30, 2026 was $49,826, an increase of $405, or 0.8%, from the three months ended June 30, 2025. source
• Operating expense increased in part due to increases in targeted investments to support and strengthen our workforce and accelerate technology adoption, an increase in expenses to address regulatory matters and an increase in premium tax expenses and assessments. source

Impact estimates