How Carelon’s Revenue Momentum and Acquisitions at Elevance Health (ELV) Have Shifted Its Investment Story

• Earlier this month, Elevance Health reported third-quarter 2025 adjusted earnings per share of US$6.03, surpassing consensus estimates due to strong growth in premiums, product revenues, and net investment income.
• A particularly important development was the robust revenue growth from the Carelon segment, which benefited from acquisitions and the expansion of risk-based services, reinforcing Elevance Health's focus on diversified healthcare platforms.
• We'll explore how Elevance Health's reaffirmed 2025 outlook and premium revenue growth could influence its current investment narrative.

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Elevance Health Investment Narrative Recap

To be comfortable as a shareholder of Elevance Health, you need to believe in its ability to grow earnings through diversification, value-based care, and disciplined cost control. The latest quarterly results, reflecting above-expectation adjusted earnings per share and reaffirmed guidance, appear to support its premium revenue growth catalyst, though ongoing margin pressure from medical cost trends remains a risk; the news does not materially change those fundamentals.

Among recent announcements, the expansion of Carelon’s risk-based services and revenue through acquisitions is closely tied to current growth results and the company’s long-term margin ambitions. The ability to successfully integrate these additions is directly relevant to maintaining and enhancing earnings diversity, especially as Carelon’s role expands within the group’s financial profile.

Yet, investors must not overlook the potential for delayed Medicaid rate recovery, which could challenge ...

Read the full narrative on Elevance Health (it's free!)

Elevance Health's outlook projects $230.4 billion in revenue and $7.4 billion in earnings by 2028. This is based on a 6.8% annual revenue growth rate and a $2.0 billion increase in earnings from today's $5.4 billion.

Uncover how Elevance Health's forecasts yield a $386.11 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Fifteen Simply Wall St Community members estimate Elevance Health’s fair value between US$297 and US$1,082, highlighting wide opinions on its outlook. As these views diverge, so too does sentiment around the company’s efforts to achieve margin improvement amid rising medical costs, explore the full range of community analysis for a broader perspective.

Explore 15 other fair value estimates on Elevance Health - why the stock might be worth 8% less than the current price!

Build Your Own Elevance Health Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Elevance Health research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Elevance Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Elevance Health's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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