Executive Summary
Elevance Health Inc reported Q3 2025 revenue of $50.71 billion, up 12.3% year-over-year, and net income of $1.19 billion with a diluted EPS of $5.32. The quarter delivered an operating margin of 3.46% and a gross margin of 14.18%, reflecting a combination of favorable top-line growth and ongoing cost pressures within a large, complex US health benefits portfolio. While cash flow remains solid, free cash flow per share stood at $3.43, underscoring Elevance’s ability to convert earnings into cash despite a modest bottom-line margin profile. Leverage remains minimal, with debt ratios well below peer levels, enhancing balance sheet resilience in a volatile macro environment. Management commentary, if available, would typically focus on utilization trends, medical loss ratios, and efficiency initiatives that could drive margin expansion over time.
Key Performance Indicators
QoQ: -85.55% | YoY:-84.07%
QoQ: -23.34% | YoY:27.97%
QoQ: -31.78% | YoY:17.03%
QoQ: -31.09% | YoY:22.02%
Key Insights
Revenue: $50.711B (YoY +12.3%, QoQ +1.9%); Gross Profit: $7.191B (Gross Margin 14.18%); Operating Income: $1.757B (Operating Margin 3.46%); Net Income: $1.189B (Net Margin 2.34%); EPS: $5.32; Diluted EPS: $5.32; Shares (weighted avg): 225.8M; Cash Flow per Share: Operating $5.03; Free Cash Flow per Share $3.43; Cash per Share $38.59; Debt/Leverage: Debt ratio 0.0076, Debt to capitalization 0.0207; Interest Coverage 5.01; P/E 15.34; P/B 1.66; P/S 1.44; EV/EBITDA 37.10; Dividend Yield 0.522%; Divi...
Financial Highlights
Revenue: $50.711B (YoY +12.3%, QoQ +1.9%); Gross Profit: $7.191B (Gross Margin 14.18%); Operating Income: $1.757B (Operating Margin 3.46%); Net Income: $1.189B (Net Margin 2.34%); EPS: $5.32; Diluted EPS: $5.32; Shares (weighted avg): 225.8M; Cash Flow per Share: Operating $5.03; Free Cash Flow per Share $3.43; Cash per Share $38.59; Debt/Leverage: Debt ratio 0.0076, Debt to capitalization 0.0207; Interest Coverage 5.01; P/E 15.34; P/B 1.66; P/S 1.44; EV/EBITDA 37.10; Dividend Yield 0.522%; Dividend Payout Ratio 32%; Net cash generation indicators reflect strong cash conversion despite margin pressures.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
50.71B |
12.33% |
1.88% |
| Gross Profit |
7.19B |
-84.07% |
-85.55% |
| Operating Income |
1.76B |
27.97% |
-23.34% |
| Net Income |
1.19B |
17.03% |
-31.78% |
| EPS |
5.32 |
22.02% |
-31.09% |
Key Financial Ratios
operatingProfitMargin
3.46%
operatingCashFlowPerShare
$5.03
freeCashFlowPerShare
$3.43
Management Commentary
Transcript not provided in the input data. No management quotes or theme-based highlights are available from the earnings call within the supplied material. When transcripts are available, a thematically grouped summary should be added (Strategy, Operations, Market Conditions) with contextual quotes.
Forward Guidance
No explicit forward guidance was included in the provided data. Investors should monitor: (1) medical loss ratio and utilization trends, (2) cost discipline and efficiency programs that could improve operating margins, (3) regulatory and policy developments affecting payor models (e.g., Medicare Advantage, Medicaid/Commercial mix), and (4) long-term growth channels such as digital health solutions and diversified care services. Given a low leverage profile, Elevance has capacity to fund growth initiatives and balance sheet resilience; however, sustained margin improvement will depend on cost containment, pricing dynamics, and favorable mix shifts.