Elevance Health's Q2 2025 Results: Medicaid Managed Care Firm Cuts Full-Year Earnings Outlook

Elevance Health shares fell around 4% in the premarket after the Medicaid-driven managed care firm cut its full-year earnings outlook. The company cited elevated cost trends in its Q2 2025 results, sending its peers lower.

Elevance Health, Inc. (NYSE: ELV) reported its second-quarter 2025 earnings, revealing adjusted earnings per share (EPS) of $8.84, which fell short of the forecasted $9.07. Despite this miss, the company exceeded revenue expectations with $49.4 billion, a 14% increase year-over-year. The stock reacted negatively, dropping 9.03% in pre-market trading to $331, as investors processed the lowered full-year adjusted EPS guidance to approximately $30.

Elevance Health's Q2 adjusted EPS of $8.84 missed expectations by 2.54%. Revenue increased by 14% year-over-year, surpassing forecasts. The stock fell 9.03% pre-market, reflecting investor concerns over the revised EPS guidance. The company is focusing on strategic investments in AI and pharmacy services.

Key Takeaways:
- Revenue: $49.4 billion, up 14% year-over-year.
- Adjusted EPS: $8.84, compared to a forecast of $9.07.
- Consolidated Benefit Expense Ratio: 88.9%, up 260 basis points from the previous year.

Elevance Health’s actual EPS of $8.84 was below the forecast of $9.07, marking a surprise of -2.54%. In contrast, the company exceeded revenue expectations, reporting $49.4 billion against a forecast of $48.14 billion, a positive surprise of 2.62%.

Following the earnings release, Elevance Health’s stock fell 9.03% in pre-market trading, closing at $331. This decline reflects investor concerns over the missed EPS expectations and the revised full-year guidance. The stock remains in the lower range of its 52-week performance, with a high of $567.26 and a low of $309.22.

Elevance Health cited elevated cost trends in its Q2 2025 results, sending its peers lower. The company is focusing on margin stability and restoring earnings power, while preparing for potential policy changes impacting Medicaid enrollment and ACA subsidies.

Reference List:
[1] https://www.elevancehealth.com/newsroom/elv-quarterly-earnings-q2-2025
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-elevance-healths-q2-2025-eps-misses-forecast-stock-drops-93CH-4140027