• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    How Investors Are Reacting To Elevance Health (ELV) Slower EPS, Higher Dividend And 2026 Guidance

    Simply Wall St·02/08/2026 02:09:22
    Listen to the news
    • Elevance Health has released its fourth quarter and full-year 2025 results, reporting full-year revenue of US$199.13 billion, net income of US$5.66 billion, new 2026 earnings guidance, a first-quarter 2026 dividend of US$1.72 per share, and continued share repurchases.
    • Despite higher revenue, full-year earnings per share and profit margins eased, while the company still returned cash through dividends and buybacks.
    • We will now examine how Elevance Health’s slower earnings progression alongside a higher dividend shapes the company’s broader investment narrative.

    Invest in the nuclear renaissance through our list of 87 elite nuclear energy infrastructure plays powering the global AI revolution.

    What Is Elevance Health's Investment Narrative?

    To own Elevance Health, you need to be comfortable with a large, mature insurer that leans on scale, disciplined underwriting and steady capital returns rather than rapid expansion. The latest results reinforce that trade-off: revenue climbed to about US$199.13 billion in 2025, but net income and EPS softened, and 2026 guidance points to at least US$22.30 in GAAP EPS on a low single digit revenue decline. At the same time, management lifted the quarterly dividend to US$1.72 and kept buying back stock, signaling an ongoing focus on shareholder payouts even as profit margins ease. In the near term, the key catalysts remain how management balances pricing, medical cost trends and regulation against this more cautious earnings outlook. The risk is that softer profitability becomes a trend rather than a pause.

    However, investors should be aware of how sustained margin pressure could reshape that capital return story. Despite retreating, Elevance Health's shares might still be trading above their fair value and there could be some more downside. Discover how much.

    Exploring Other Perspectives

    ELV 1-Year Stock Price Chart
    ELV 1-Year Stock Price Chart
    The Simply Wall St Community’s 10 fair value estimates for Elevance Health span roughly US$320 to a very large figure above US$1,000 per share, underlining how far opinions can spread. Set that against the recent guidance for lower 2026 revenue and earnings, and you can see why many readers may want to weigh multiple viewpoints before deciding how much profit risk they are comfortable with.

    Explore 10 other fair value estimates on Elevance Health - why the stock might be worth over 3x more than the current price!

    Build Your Own Elevance Health Narrative

    Disagree with this assessment? Create your own narrative 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 4 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.

    Looking For Alternative Opportunities?

    Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

    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.