Elevance 2Q Beat Reflects Core Outperformance and Non-Recurring Factors; Medicaid Commentary Focus of Call

Research evidence excerpt

Elevance 2Q Beat Reflects Core Outperformance and Non-Recurring Factors; Medicaid Commentary Focus of Call

J P M O R G A N North America Equity Research

15 July 2026

Elevance Overweight

ELV, ELV US

2Q Beat Reflects Core Outperformance and Non- Price (14 Jul 26):$426.79

Recurring Factors; Medicaid Commentary Focus of Call

Managed Care and Facilities

ELV’s 2Q came in ahead of expectations with better-than-expected MLR aided by Lisa C. Gill AC

several below-the-line items and favorable seasonality as ELV increased core 2026 (1-212) 622-6466

guidance by ~$0.25. While the magnitude of the core guidance increase ($0.25 on lisa.c.gill@jpmorgan.com

a run-rate basis) was less than the beat in the quarter and may have somewhat John Stansel, CFA

lagged investor expectations, we still point to core improvement, balanced with (1-212) 622-0083

continued prudence, with ~$1.05 of the outperformance in the quarter relating to john.stansel@jpmorgan.com

below-the-line items (where ELV is opportunistically reinvesting) as well as Benjamin Rossi

seasonal favorability. We were encouraged to see 2Q MLR come in better than (1-212) 622-9603

benjamin.rossi@jpmorgan.com

consensus expected, and we expect to hear more details on trend progression in the

Cole Harris

quarter, particularly around Medicaid, which remains a focal point for ELV. See (1-212) 622-9068

Figure 1 for a summary of the quarter vs. JPM/consensus expectations and our key cole.harris@jpmorgan.com

takeaways below: J.P. Morgan Securities LLC

• ELV reported 2Q adj. EPS of $7.45 vs. $6.15/$6.20 JPMe/Bloomberg

consensus while raising 2026 guidance to at least $27.00 vs at least $26.75

previously and JPMe/consensus of $26.79/$26.84. Recall that as part of 1Q

earnings, ELV highlighted ~$1.00 of better-than-expected non-recurring net