Elevance Health Inc

elevancehealth.com

What Do They Do?

Sells health insurance plans and provides pharmacy and other health services to individuals, employers, government programs, and health plans.

How Do They Make Money?

Health plan members and government agencies pay premiums for coverage over the coverage period. Employers and other fee-based customers pay administrative fees over time, while unaffiliated pharmacy customers pay for pharmacy services and prescription drugs when provided.

revenue

Segment	Share	Revenue	How money arrives
Product revenue Sold outright	74% FY2022: 67%		Sold outright
Service fees Recurring	26% FY2022: 33%		Recurring

Who Are Their Customers?

Individuals, employers, and government programs buy health plans, while employers and health plans also buy pharmacy and administrative services. Individuals and smaller employers can buy through agents, brokers, or retail partners; larger employers generally use brokers or consultants, and some services are sold to external health plans.

Do Revenues Turn Into Profits?

Yes. It kept 3 cents of every revenue dollar as net income in FY2025 and turned 2 cents into free cash flow.

Operating income, FY2025

4% of revenue

▼ −8% vs FY2024 ($7.9B, 4%)

Net income, FY2025

3% of revenue

▼ −5% vs FY2024 ($6B, 3%)

Free cash flow, FY2025

2% of revenue

▼ −30% vs FY2024 ($4.6B, 3%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q3 FY2026, the three months to Sep 30, 2026

Revenue: ▲ +1%; vs $50.7B in Q3 FY2025
Net income: ▲ +15%; vs $1.2B in Q3 FY2025

Product revenue share of product and service revenue vs 74.2% in Q3 FY2025

Jul 15, 2026 Elevance raised its full-year 2026 earnings and operating cash flow guidance The company raised adjusted diluted earnings guidance to at least $27.00 per share and operating cash flow guidance to at least $6.0 billion.
Mar 2, 2026 CMS proposed suspending enrollment in Medicare Advantage drug plans The planned sanctions would suspend new enrollment starting March 31, 2026, unless CMS determines the issues have been addressed; current members' benefits would not be affected.

Growing. Revenue grew 44% in 4 years, from $138.6B in FY2021 to $199.1B in FY2025, about 9% a year.

Broader pharmacy and care services The latest report describes CarelonRx as including ambulatory infusion centers and Carelon Services as integrating physical, behavioral, pharmacy, and social-care capabilities, including personalized home and virtual care. The older report described the pharmacy business as a pharmacy benefit manager and Carelon Services as focused on enabling care delivery and payment models.

Health Benefits combines customer groups The older report described commercial and government health plans in separate segments; the latest report groups them together in Health Benefits, alongside fee-based services and specialty insurance products.

Revenue over time

Product revenue Service fees

$50B$25B$0

FY2022 FY2023 FY2024 FY2025

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