Elevance Health reported second-quarter 2025 operating revenue of $49.4 billion, a 14% increase year-over-year. However, shareholders' earnings per diluted share decreased by 21.6% to $7.72 from $9.85 in Q2 2024.
The company updated its 2025 GAAP net income per diluted share guidance to approximately $24.10 and adjusted net income per diluted share to approximately $30.00, a reduction from its previous forecast of $34.15 to $34.85. This revision reflects ongoing elevated medical cost trends in its ACA and Medicaid businesses, along with slower rate alignment in Medicaid.
The benefit expense ratio increased by 260 basis points to 88.9%, primarily due to higher medical cost trends in Medicaid and ACA health plans. Medical membership declined by 212 thousand from Q1 2025 to 45.6 million, driven by lower Medicaid membership and attrition in Individual ACA.
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