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Will Health Benefits Weakness Drag Elevance's Q2 Earnings?
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Key Takeaways
Elevance is likely to see Q2 EPS of $6.18 on $48.45B in revenues, with both projected to decline.
ELV may face pressure from lower premiums, membership declines and weaker Health Benefits results.
Elevance's higher benefit expense ratio could weigh on profitability in the quarter.
Elevance Health, Inc. (ELV - Free Report) is set to report its second-quarter 2026 results on July 15, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.18 per shareon revenues of $48.45 billion.
The second-quarter earnings estimate witnessed one downward revision and no upward revisions over the past 60 days. The bottom-line projection indicates a year-over-year decline of 30.1%. Also, the Zacks Consensus Estimate for quarterly revenues implies a year-over-year decrease of 2%.
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For 2026, the Zacks Consensus Estimate for Elevance’s revenues is pegged at $194.24 billion, implying a fall of 1.7% year over year. The consensus mark for 2026 EPS is pegged at $26.86, indicating an 11.3% year-over-year decrease.
Elevance’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 10.6%. This is depicted in the figure below.
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
ELV currently has an Earnings ESP of -0.42% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Elevance’s Q2 Results?
The Zacks Consensus Estimate for product revenues indicates 4.7% growth from the year-ago period’s $6.04 billion. However, the consensus estimate for premiums indicates a 3.3% decrease from the year-ago period.
The consensus mark for Commercial Individual membership implies 10% fall from a year ago, while our model estimate indicates a 12.2% decline. Also, declining memberships in Medicaid (-5.8%) are likely to have kept second-quarter performance in check. However, the consensus estimate for Commercial Fee-based memberships indicates 1.9% year-over-year growth.
Meanwhile, the Zacks Consensus Estimate for Carelon brand’s operating income for the second quarter indicates a 3.8% year-over-year decrease. The consensus estimate for the Health Benefits segment’s operating income for the second quarter indicates a 34.7% year-over-year plunge, making an earnings beat uncertain.
The Zacks Consensus Estimate for the benefit expense ratio is pegged at 89.4, higher than the year-ago level of 88.9, which could further weigh on profitability during the quarter.
Stocks That Warrant a Look
While an earnings beat looks uncertain for Elevance, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for ProMIS’ bottom line for the to-be-reported quarter of a loss of $1.45 indicates 80% year-over-year improvement. It has witnessed one upward revision against no downward movement over the past 60 days.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +1.83% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter indicates 1.3% increase from a year ago. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 3.7%. The consensus estimate for ALC’s revenues is pegged at $2.77 billion, signaling 7.3% increase.
Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter predicts 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. CAH’s revenues for the to-be-reported quarter are pegged at $65.61 billion, a 9.1% increase from the year-ago period.
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Will Health Benefits Weakness Drag Elevance's Q2 Earnings?
Key Takeaways
Elevance Health, Inc. (ELV - Free Report) is set to report its second-quarter 2026 results on July 15, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.18 per shareon revenues of $48.45 billion.
The second-quarter earnings estimate witnessed one downward revision and no upward revisions over the past 60 days. The bottom-line projection indicates a year-over-year decline of 30.1%. Also, the Zacks Consensus Estimate for quarterly revenues implies a year-over-year decrease of 2%.
For 2026, the Zacks Consensus Estimate for Elevance’s revenues is pegged at $194.24 billion, implying a fall of 1.7% year over year. The consensus mark for 2026 EPS is pegged at $26.86, indicating an 11.3% year-over-year decrease.
Elevance’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 10.6%. This is depicted in the figure below.
Elevance Health, Inc. Price and EPS Surprise
Elevance Health, Inc. price-eps-surprise | Elevance Health, Inc. Quote
Q2 Earnings Whispers for Elevance
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
ELV currently has an Earnings ESP of -0.42% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Elevance’s Q2 Results?
The Zacks Consensus Estimate for product revenues indicates 4.7% growth from the year-ago period’s $6.04 billion. However, the consensus estimate for premiums indicates a 3.3% decrease from the year-ago period.
The consensus mark for Commercial Individual membership implies 10% fall from a year ago, while our model estimate indicates a 12.2% decline. Also, declining memberships in Medicaid (-5.8%) are likely to have kept second-quarter performance in check. However, the consensus estimate for Commercial Fee-based memberships indicates 1.9% year-over-year growth.
Meanwhile, the Zacks Consensus Estimate for Carelon brand’s operating income for the second quarter indicates a 3.8% year-over-year decrease. The consensus estimate for the Health Benefits segment’s operating income for the second quarter indicates a 34.7% year-over-year plunge, making an earnings beat uncertain.
The Zacks Consensus Estimate for the benefit expense ratio is pegged at 89.4, higher than the year-ago level of 88.9, which could further weigh on profitability during the quarter.
Stocks That Warrant a Look
While an earnings beat looks uncertain for Elevance, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
ProMIS Neurosciences, Inc. (PMN - Free Report) has an Earnings ESP of +13.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ProMIS’ bottom line for the to-be-reported quarter of a loss of $1.45 indicates 80% year-over-year improvement. It has witnessed one upward revision against no downward movement over the past 60 days.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +1.83% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter indicates 1.3% increase from a year ago. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 3.7%. The consensus estimate for ALC’s revenues is pegged at $2.77 billion, signaling 7.3% increase.
Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter predicts 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. CAH’s revenues for the to-be-reported quarter are pegged at $65.61 billion, a 9.1% increase from the year-ago period.