-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
ELV reported Q1 2026 adjusted EPS of $12.58 vs. consensus of $11.97, beating by $1.77 (16.4%), while operating revenue grew 1.5% to $49.5B despite membership declining 0.9% to 45.4M. Benefit expense ratio of 86.8% remained elevated (up 40 bps), though operating expense ratio surged to 12.8% (up 210 bps) due to a $935M accrual for CMS noncompliance costs. We view the report as positive for ELV's gradual recovery toward prior profitability levels after recent challenges with higher medical costs and utilization. Management raised full-year EPS guidance to at least $26.75 from $25.50 previously. Strong cash flow enabled return of ~$1.5B to shareholders ($1.1B in buybacks, ~$376M in dividends) during the quarter, with $5.6B remaining on the share repurchase authorization. We see improvement in Medicare performance as encouraging, though membership trends reflect strategic repositioning efforts including a 15.8% decline in Medicare Advantage to 1.9M members.