2Q 2025 operating revenue of $49.4 billion, up 14.3% from 2Q 2024

2Q 2025 diluted EPS¹ of $7.72; adjusted diluted EPS² of $8.84

Revising FY 2025 adjusted diluted EPS guidance to approximately $30.00

Returned $2.0 billion of capital to shareholders year-to-date

Elevance Health, Inc. (NYSE:ELV) reported second quarter 2025 results.

"In the second quarter, Elevance Health made meaningful progress in delivering an experience that is simple and personal to those we serve, while advancing our efforts to enhance efficiency across the healthcare system. We are updating our outlook to reflect elevated medical cost trends in ACA and slower rate alignment in Medicaid. While the external environment continues to evolve, we are focused on the areas within our control - managing healthcare costs, deploying targeted investments in advanced technology and value-based care delivery, and reinforcing the operational foundation that supports long-term value creation. With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in achieving at least 12% average annual growth in adjusted diluted EPS over time."

Gail K. Boudreaux

President and Chief Executive Officer

Given the ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid, Elevance Health now expects 2025 GAAP net income per diluted share to be approximately $24.10 and adjusted net income per diluted share to be approximately $30.00.

1.		Earnings per diluted share ("EPS").
2.		Refer to GAAP reconciliation tables for reconciliation of GAAP to adjusted measures.


Elevance Health
Consolidated Enterprise Highlights
(Unaudited)

(In billions)	Three Months Ended
	June 30, 2025	June 30, 2024

Operating Revenue¹	$49.4	$43.2
Operating Gain^1,2	$2.4	$2.8
Adjusted Operating Gain^1,3	$2.5	$2.9

Operating Margin¹	4.9 %	6.4 %
Adjusted Operating Margin^1,3	5.0 %	6.7 %

1.		See "Basis of Presentation."
2.		Operating Gain for the three months ended June 30, 2025, and June 30, 2024, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
3.		Adjusted Operating Gain for the three months ended June 30, 2025, and June 30, 2024, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

Operating revenue was $49.4 billion in the second quarter of 2025, an increase of $6.2 billion, or 14 percent compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment, recently closed acquisitions, and growth in our Medicare Advantage membership, partially offset by membership attrition in our Medicaid business.

The benefit expense ratio was 88.9 percent, an increase of 260 basis points year over year, reflecting higher medical cost trend primarily in our Medicaid business and ACA health plans. Days in Claims Payable stood at 43.9 days as of June 30, 2025, when adjusted for our acquisition of CareBridge. This represents a decrease of 0.1 days sequentially on a comparable basis.

The operating expense ratio was 10.1 percent, an improvement of 160 basis points. The adjusted operating expense ratio was 10.0 percent, an improvement of 140 basis points, primarily driven by expense leverage associated with growth in operating revenue and ongoing expense discipline as we prioritize investments to support our long-term strategy.

Cash Flow & Balance Sheet

Operating cash flow was $3.1 billion year-to-date, or 0.8 times GAAP net income, an increase of $0.6 billion year over year. As of June 30, 2025, cash and investments at the parent company totaled approximately $2.2 billion.

During the second quarter of 2025, the Company repurchased 0.9 million shares of its common stock for $379 million, at a weighted average price of $410.05, and paid a quarterly dividend of $1.71 per share, representing a distribution of cash totaling $385 million. As of June 30, 2025, the Company had approximately $8.0 billion of Board approved share repurchase authorization remaining.

Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard^®, Medicare, Medicaid, and Federal Employee Program businesses.


Health Benefits
Reportable Segment Highlights
(Unaudited)

(In billions)	Three Months Ended
	June 30, 2025	June 30, 2024

Operating Revenue¹	$41.6	$37.2
Operating Gain^1,2	$1.6	$2.1
Adjusted Operating Gain^1,3	$1.6	$2.2

Operating Margin¹	3.8 %	5.8 %
Adjusted Operating Margin¹	3.8 %	5.8 %

1.		See "Basis of Presentation."
2.		Operating Gain for the three months ended June 30, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
3.		Adjusted Operating Gain for the three months ended June 30, 2024, excludes $15 million of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Health Benefits segment.

Health Benefits segment operating revenue was $41.6 billion in the second quarter of 2025, an increase of $4.4 billion, or 12 percent compared to the prior year quarter, driven primarily by higher premium yields, recently closed acquisitions, and growth in our Medicare Advantage membership, partially offset by lower Medicaid membership.

Operating gain totaled $1.6 billion, impacted principally by higher medical cost trend in our Medicaid business and ACA health plans.

Medical membership totaled approximately 45.6 million as of June 30, 2025, a decline of 212 thousand from the first quarter of 2025, driven by lower Medicaid membership and attrition resulting from lower effectuation rates in our Individual ACA business.

Carelon is comprised of CarelonRx and Carelon Services.


Carelon
Reportable Segment Highlights
(Unaudited)

(In billions)	Three Months Ended
	June 30, 2025	June 30, 2024

Operating Revenue^1,2	$18.1	$13.3
Operating Gain^1,3	$0.9	$0.7
Adjusted Operating Gain^1,4	$0.9	$0.7

Operating Margin¹	5.2 %	5.3 %
Adjusted Operating Margin¹	5.2 %	5.6 %

1.		See "Basis of Presentation."
2.		Operating Revenue for the three months ended June 30, 2024, includes $0.2 billion of revenue related to 2024 business dispositions and related items that have been excluded from adjusted operating gain.
3.		Operating Gain for the three months ended June 30, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
4.		Adjusted Operating Gain for the three months ended June 30, 2024, excludes $44 million of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment.

Operating revenue for Carelon was $18.1 billion in the second quarter of 2025, an increase of $4.8 billion, or 36 percent compared to the prior year quarter. This was driven by recent acquisitions in home health and pharmacy services, growth in CarelonRx product revenue, and the scaling of innovative risk-based capabilities in Carelon Services.

Operating gain for Carelon totaled $0.9 billion, an increase of $0.2 billion, or 33 percent, primarily driven by improved Carelon Health performance and higher CarelonRx product revenue.

Quarterly Dividend

On July 16, 2025, the Audit Committee of the Company's Board of Directors declared a third quarter 2025 dividend to shareholders of $1.71 per share. The third quarter dividend is payable on September 25, 2025, to shareholders of record at the close of business on September 10, 2025.

About Elevance Health

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health's companies serve over 109 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time ("EDT") to discuss the company's second quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

888-947-9963 (Domestic)		866-511-1890 (Domestic Replay)
312-470-0178 (International)		203-369-1945 (International Replay)

The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on August 15, 2025. The call will also be available through a live webcast at www.elevancehealth.com under the "Investors" link. A webcast replay will be available following the call.

Basis of Presentation

Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer the GAAP reconciliation tables.
Operating margin is defined as operating gain divided by operating revenue.

Elevance Health

Earnings Release Financial Schedules and Supplementary Information

Quarter & Year-to-Date Ended June 30, 2025

Membership and Other Metrics

Quarterly & Year-to-Date Consolidated Statements of Income

Condensed Consolidated Balance Sheet

Condensed Consolidated Statement of Cash Flows

Supplemental Financial Information - Reportable Segments

Supplemental Financial Information - Reconciliation of Medical Claims Payable

Reconciliation of Non-GAAP Financial Measures

Elevance Health
Membership and Other Metrics
(Unaudited)

				Change from
Medical Membership (in thousands)	June 30, 2025	June 30, 2024	March 31, 2025	June 30, 2024	March 31, 2025
Individual	1,348	1,281	1,423	5.2 %	(5.3) %
Employer Group Risk-Based	3,615	3,648	3,638	(0.9) %	(0.6) %
Commercial Risk-Based	4,963	4,929	5,061	0.7 %	(1.9) %
BlueCard^®	6,570	6,692	6,608	(1.8) %	(0.6) %
Employer Group Fee-Based	20,584	20,542	20,522	0.2 %	0.3 %
Commercial Fee-Based	27,154	27,234	27,130	(0.3) %	0.1 %
Medicare Advantage	2,255	2,031	2,255	11.0 %	— %
Medicare Supplement	874	894	876	(2.2) %	(0.2) %
Total Medicare	3,129	2,925	3,131	7.0 %	(0.1) %
Medicaid	8,733	9,028	8,862	(3.3) %	(1.5) %
Federal Employee Program	1,642	1,660	1,649	(1.1) %	(0.4) %
Total Medical Membership	45,621	45,776	45,833	(0.3) %	(0.5) %
Other Metrics (in millions)
CarelonRx Quarterly Adjusted Scripts	83.3	78.2	83.9	6.5 %	(0.7) %
Carelon Services Consumers Served	97.3	102.3	99.5	(4.9) %	(2.2) %

Elevance Health
Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)	Three Months Ended June 30								Six Months Ended June 30
		2025			2024		Change			2025			2024		Change

Revenues
Premiums	$	41,271		$	35,416		16.5	%	$	82,158		$	71,112		15.5	%
Product revenue		6,042			5,530		9.3	%		11,851			10,029		18.2	%
Service fees		2,108			2,277		(7.4	)%		4,177			4,355		(4.1	)%
Total operating revenue		49,421			43,223		14.3	%		98,186			85,496		14.8	%
Net investment income		486			508		(4.3	)%		1,076			973		10.6	%
Net losses on financial instruments		(131	)		(85	)	NM			(595	)		(246	)	NM
Gain on sale of business		—			240		NM			—			240		NM
Total revenues		49,776			43,886		13.4	%		98,667			86,463		14.1	%
Expenses
Benefit expense		36,706			30,572		20.1	%		72,018			61,118		17.8	%
Cost of products sold		5,293			4,820		9.8	%		10,276			8,645		18.9	%
Operating expense		4,997			5,066		(1.4	)%		10,297			9,952		3.5	%
Interest expense		341			280		21.8	%		685			545		25.7	%
Amortization of other intangible assets		147			162		(9.3	)%		302			278		8.6	%
Total expenses		47,484			40,900		16.1	%		93,578			80,538		16.2	%

Income before income tax expense		2,292			2,986		(23.2	)%		5,089			5,925		(14.1	)%

Income tax expense		548			685		(20.0	)%		1,161			1,375		(15.6	)%
Net income		1,744			2,301		(24.2	)%		3,928			4,550		(13.7	)%

Net income attributable to noncontrolling interests		(1	)		(1	)	NM			(2	)		(4	)	NM
Shareholders' net income	$	1,743		$	2,300		(24.2	)%	$	3,926		$	4,546		(13.6	)%
Shareholders' earnings per diluted share	$	7.72		$	9.85		(21.6	)%	$	17.33		$	19.44		(10.9	)%
Diluted shares		225.8			233.4		(3.3	)%		226.5			233.8		(3.1	)%

Benefit expense as a percentage of premiums		88.9	%		86.3	%	260 bp			87.7	%		85.9	%	180 bp
Operating expense as a percentage of total operating revenue		10.1	%		11.7	%	(160) bp			10.5	%		11.6	%	(110) bp
Income before income tax expense as a percentage of total revenue		4.6	%		6.8	%	(220) bp			5.2	%		6.9	%	(170) bp

"NM" = calculation not meaningful

Elevance Health
Condensed Consolidated Balance Sheet
(In millions)	June 30, 2025	December 31, 2024
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$8,560	$8,288
Fixed maturity and equity securities	26,232	26,393
Premium and other receivables	23,125	19,071
Other current assets	5,407	4,700
Assets held for sale	—	490
Total current assets	63,324	58,942

Long-term investments	11,553	10,784
Property and equipment, net	4,641	4,652
Goodwill and other intangible assets	39,858	40,371
Other noncurrent assets	2,562	2,140
Total assets	$121,938	$116,889

Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable	$17,155	$15,746
Short-term borrowings	360	365
Current portion of long-term debt	1,648	1,649
Other current liabilities	24,671	22,668
Liabilities held for sale	—	153
Total current liabilities	43,834	40,581

Long-term debt, less current portion	28,178	29,218
Other noncurrent liabilities	6,075	5,664
Total liabilities	78,087	75,463

Total shareholders' equity	43,722	41,315
Noncontrolling interests	129	111
Total equity	43,851	41,426
Total liabilities and equity	$121,938	$116,889

Elevance Health
Condensed Consolidated Statement of Cash Flows
(Unaudited)

(In millions)	Six Months Ended June 30
	2025	2024

Operating activities
Net income	$3,928	$4,550
Depreciation and amortization	753	666
Share-based compensation	162	154
Changes in operating assets and liabilities	(2,003)	(2,943)
Other non-cash items	231	(2)
Net cash provided by operating activities	3,071	2,425

Investing activities
Proceeds from (purchases of) investments, net of sales and maturities	329	(1,415)
Purchases of subsidiaries, net of cash acquired/sold	54	(725)
Purchases of property and equipment	(463)	(602)
Other, net	(504)	(386)
Net cash used in investing activities	(584)	(3,128)

Financing activities
Net change in short-term and long-term borrowings	(1,255)	2,580
Repurchase and retirement of common stock	(1,258)	(1,029)
Cash dividends	(771)	(757)
Other, net	1,067	(94)
Net cash (used in) provided by financing activities	(2,217)	700

Effect of foreign exchange rates on cash and cash equivalents	2	(5)

Change in cash and cash equivalents	272	(8)
Cash and cash equivalents at beginning of period	8,288	6,526
Cash and equivalents included in assets held for sale at end of period	—	(21)

Cash and cash equivalents at end of period	$8,560	$6,497

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard^®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).


Elevance Health
Reportable Segment Highlight Details
(Unaudited)

(In millions)	Three Months Ended June 30			Six Months Ended June 30
	2025	2024	Change	2025	2024	Change

Operating Revenue
Health Benefits	$41,582	$37,159	11.9 %	$83,013	$74,417	11.6 %
CarelonRx	10,643	8,774	21.3 %	20,759	16,841	23.3 %
Carelon Services	7,441	4,545	63.7 %	13,977	8,554	63.4 %
Corporate & Other	232	122	90.2 %	397	249	59.4 %
Eliminations	(10,477)	(7,377)	NM⁵	(19,960)	(14,565)	NM⁵
Total Operating Revenue¹	$49,421	$43,223	14.3 %	$98,186	$85,496	14.8 %

Operating Gain (Loss)
Health Benefits²	$1,560	$2,145	(27.3) %	$3,777	$4,432	(14.8) %
CarelonRx	536	497	7.8 %	1,138	1,020	11.6 %
Carelon Services²	400	208	92.3 %	891	498	78.9 %
Corporate & Other^2,3	(71)	(85)	NM⁵	(211)	(169)	NM⁵
Total Operating Gain^1,4	$2,425	$2,765	(12.3) %	$5,595	$5,781	(3.2) %

Operating Margin
Health Benefits	3.8 %	5.8 %	(200) bp	4.5 %	6.0 %	(150) bp
CarelonRx	5.0 %	5.7 %	(70) bp	5.5 %	6.1 %	(60) bp
Carelon Services	5.4 %	4.6 %	80 bp	6.4 %	5.8 %	60 bp
Total Operating Margin¹	4.9 %	6.4 %	(150) bp	5.7 %	6.8 %	(110) bp

1.			See "Basis of Presentation."
2.			Operating Gain for the three and six months ended June 30, 2024, included $59 and $119 million, respectively, of 2024 business dispositions and related items; including $44 and $88 million, respectively, for the Carelon Services segment; and $15 and $31 million, respectively, for the Health Benefits segment. Operating Gain for the three and six months ended June 30, 2024, included $64 and $116 million, respectively, of transaction and integration related costs, $9 and $11 million, respectively, of litigation and settlement expenses, and $4 and $0 million, respectively, of business optimization charges, all of which reside in the Corporate & Other reportable segment.
3.			Operating Gain for the three and six months ended June 30, 2025, included $53 and $133 million, respectively, of transaction and integration related costs and $10 and $15 million, respectively, of litigation and settlement expenses, which reside in the Corporate & Other reportable segment.
4.			Operating Gain for the three and six months ended June 30, 2025, and June 30, 2024, included items excluded from adjusted shareholders' net income. See "GAAP Reconciliation."
5.			"NM" = calculation not meaningful.

Elevance Health
Reconciliation of Medical Claims Payable

	Six Months Ended June 30						Years Ended December 31
		2025			2024			2024			2023			2022
(In millions)	(Unaudited)			(Unaudited)

Gross medical claims payable, beginning of period	$	15,580		$	15,865		$	15,865		$	15,348		$	13,282
Ceded medical claims payable, beginning of period		(13	)		(7	)		(7	)		(6	)		(21	)
Net medical claims payable, beginning of period		15,567			15,858			15,858			15,342			13,261

Business combinations and purchase adjustments		182			—			143			—			133

Net incurred medical claims:
Current year		71,090			60,551			125,370			121,798			113,414
Prior years redundancies¹		(1,065	)		(1,473	)		(1,731	)		(1,571	)		(869	)
Total net incurred medical claims		70,025			59,078			123,639			120,227			112,545

Net payments attributable to:
Current year medical claims		57,117			48,297			110,930			107,146			98,997
Prior years medical claims		11,802			11,584			13,143			12,565			11,600
Total net payments		68,919			59,881			124,073			119,711			110,597

Net medical claims payable, end of period		16,855			15,055			15,567			15,858			15,342
Ceded medical claims payable, end of period		16			12			13			7			6
Gross medical claims payable, end of period²	$	16,871		$	15,067		$	15,580		$	15,865		$	15,348

Current year medical claims paid as a percentage of current year net incurred medical claims		80.3	%		79.8	%		88.5	%		88.0	%		87.3	%

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year		7.3	%		10.2	%		12.3	%		11.4	%		7.0	%

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims		0.9	%		1.3	%		1.4	%		1.4	%		0.9	%

1.			Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
2.			Excludes insurance lines other than short duration.

Elevance Health

GAAP Reconciliation

(Unaudited)

This document references non-GAAP measures, including "Adjusted Shareholders' Net Income," "Adjusted Shareholders' Net Income Per Share," "Adjusted EPS," "Adjusted Operating Gain," "Adjusted Operating Expense" and "Adjusted Operating Expense Ratio," which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health's financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures "Operating Revenue" and "Operating Gain/Loss," "Operating Margin" and "Adjusted EPS". Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health's operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein.

	Three Months Ended June 30								Six Months Ended June 30
(In millions, except per share data)		2025			2024		Change			2025			2024		Change
Shareholders' net income	$	1,743		$	2,300		(24.2	)%	$	3,926		$	4,546		(13.6	)%
Add / (Subtract):
Amortization of other intangible assets		147			162					302			278
Net losses on financial instruments		131			85					595			246
Transaction and integration related costs¹		53			64					133			116
Litigation and settlement expenses¹		10			9					15			11
Business dispositions and related items²		—			59					—			119
Business optimization charges¹		—			4					—			—
Gain on sale of business		—			(240	)				—			(240	)
Tax impact of non-GAAP adjustments		(87	)		(38	)				(255	)		(134	)
Net adjustment items		254			105					790			396
Adjusted shareholders' net income	$	1,997		$	2,405		(17.0	)%	$	4,716		$	4,942		(4.6	)%

Shareholders' earnings per diluted share	$	7.72		$	9.85		(21.6	)%	$	17.33		$	19.44		(10.9	)%
Add / (Subtract):
Amortization of other intangible assets		0.65			0.69					1.33			1.19
Net losses on financial instruments		0.58			0.36					2.63			1.05
Transaction and integration related costs¹		0.23			0.27					0.59			0.50
Litigation and settlement expenses¹		0.04			0.04					0.07			0.05
Business dispositions and related items²		—			0.25					—			0.51
Business optimization charges¹		—			0.02					—			—
Gain on sale of business		—			(1.03	)				—			(1.03	)
Tax impact of non-GAAP adjustments		(0.39	)		(0.16	)				(1.13	)		(0.57	)
Net adjustment items		1.12			0.45					3.49			1.70
Adjusted shareholders' earnings per diluted share	$	8.84		$	10.30		(14.2	)%	$	20.82		$	21.14		(1.5	)%

	Three Months Ended June 30								Six Months Ended June 30
(In millions)		2025			2024		Change			2025			2024		Change

Income before income tax expense	$	2,292		$	2,986		(23.2	)%	$	5,089		$	5,925		(14.1	)%
Net investment income		(486	)		(508	)				(1,076	)		(973	)
Gain on sale of business		—			(240	)				—			(240	)
Net losses on financial instruments		131			85					595			246
Interest expense		341			280					685			545
Amortization of other intangible assets		147			162					302			278
Reportable segments operating gain	$	2,425		$	2,765		(12.3	)%	$	5,595		$	5,781		(3.2	)%

1.		Adjustment item resides in the Corporate & Other reportable segment.
2.		Adjustment item resides in the Health Benefits and Carelon Services reportable segments.

Elevance Health

GAAP Reconciliation

(Unaudited)

	Three Months Ended June 30								Six Months Ended June 30
(In millions)		2025			2024		Change			2025			2024		Change

Reportable segments operating gain	$	2,425		$	2,765		(12.3	)%	$	5,595		$	5,781		(3.2	)%
Add / (Subtract):
Transaction and integration related costs¹		53			64					133			116
Litigation and settlement expenses¹		10			9					15			11
Business dispositions and related items²		—			59					—			119
Business optimization charges¹		—			4					—			—
Net adjustment items		63			136					148			246
Reportable segments adjusted operating gain	$	2,488		$	2,901		(14.2	)%	$	5,743		$	6,027		(4.7	)%

	Three Months Ended June 30								Six Months Ended June 30
(In millions)		2025			2024		Change			2025			2024		Change
Operating expense	$	4,997		$	5,066		(1.4	)%	$	10,297		$	9,952		3.5	%
Add / (Subtract):
Transaction and integration related costs¹		(53	)		(64	)				(133	)		(116	)
Litigation and settlement expenses¹		(10	)		(9	)				(15	)		(11	)
Business dispositions and related items²		—			(59	)				—			(119	)
Business optimization charges¹		—			(4	)				—			—
Net adjustment items		(63	)		(136	)				(148	)		(246	)
Adjusted operating expense	$	4,934		$	4,930		0.1	%	$	10,149		$	9,706		4.6	%

Operating revenue	$	49,421		$	43,223		14.3	%	$	98,186		$	85,496		14.8	%

Operating expense ratio		10.1	%		11.7	%	(160) bp			10.5	%		11.6	%	(110) bp
Adjusted operating expense ratio		10.0	%		11.4	%	(140) bp			10.3	%		11.4	%	(110) bp


	Full Year 2025 Outlook
Shareholders' earnings per diluted share	Approximately $24.10
Add / (Subtract):
Net losses on financial instruments³	$				3.28
Amortization of other intangible assets³	$				2.98
Transaction and integration related costs^1,3	$				1.35
Litigation and settlement expenses^1,3	$				0.10
Tax impact of non-GAAP adjustments³	Approximately ($1.81)
Net adjustment items	$				5.90
Adjusted shareholders' earnings per diluted share	Approximately $30.00

1.			Adjustment item resides in the Corporate & Other reportable segment.
2.			Adjustment item resides in the Health Benefits and Carelon Services reportable segments.
3.			Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount.

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as "expect," "feel," "believe," "will," "may," "should," "anticipate," "intend," "estimate," "project," "forecast," "plan" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

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Elevance Health Contacts:

Investor Relations

Nathan Rich

Investor.Relations@elevancehealth.com

Media

Leslie Porras

Leslie.Porras@elevancehealth.com