Elevance Health Inc.

(New York Stock Exchange)
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Bullish +65

TD Cowen keeps USD 495 target for Elevance Health stock

Dividend Earnings report AI-generated analysis

πŸ“ˆ Elevance Health reported third-quarter 2026 revenue of USD 51.43 billion, up 1.40% year-over-year.

πŸ’° Shareholders' net income reached USD 1.37 billion, compared to USD 1.19 billion in the same period last year.

πŸ“Š Diluted earnings per share increased to USD 6.27 from USD 5.32 a year ago.

πŸ₯ Carelon operating revenue grew by 5.00% to USD 19.30 billion in the third quarter of 2026.

πŸ“‰ Total medical membership declined slightly by 1.10% to 44.88 million as of September 30, 2026.

πŸ” Carelon operating margin improved to 4.70%, up from 4.20% in the prior year period.

πŸ’Ό TD Cowen maintained a Buy rating with a USD 495.00 price target on October 23, 2026.

πŸ“‰ The stock trades at a trailing P/E ratio of 18.48 with a market cap of USD 93.8 billion.

πŸ’Έ Elevance Health declared a quarterly dividend of USD 1.72 per share payable on December 18, 2026.

🏒 The Health Benefits segment posted an operating margin of 1.00% in the third quarter of 2026.

Bullish Signals
  • Elevance Health reported a 1.40% year-over-year increase in total revenue to USD 51.43 billion for the third quarter of 2026.
  • Shareholders' net income grew to USD 1.37 billion, reflecting a significant improvement over the prior year's USD 1.19 billion.
  • Diluted earnings per share rose to USD 6.27 from USD 5.32, demonstrating strong profitability growth.
  • Carelon operating revenue expanded by 5.00% to USD 19.30 billion, offsetting membership headwinds.
  • The Carelon segment improved its operating margin to 4.70%, indicating enhanced operational efficiency.
  • TD Cowen analyst firm reaffirmed a Buy rating with a USD 495.00 price target, signaling confidence in the stock's upside potential.
Risk Factors
  • Total medical membership declined by 1.10% to 44.88 million as of September 30, 2026, indicating some pressure on the core health benefits business.
  • The Health Benefits segment posted a relatively low operating margin of 1.00% in the third quarter compared to Carelon's 4.70%.
Full Analysis
Elevance Health reported strong third-quarter financial results for the period ending September 30, 2026, with total revenue reaching USD 51.43 billion, representing a 1.40% increase from the prior year. Shareholders' net income grew to USD 1.37 billion, and diluted earnings per share rose to USD 6.27, driven by improved performance in its Carelon segment. Analyst firm TD Cowen maintained its Buy rating on Elevance Health stock with a price target of USD 495.00 as of October 23, 2026. The company's market capitalization stands at USD 93.8 billion, and it recently declared a quarterly dividend of USD 1.72 per share payable in December. Despite a slight decline in total medical membership of 1.10% to 44.88 million, Elevance Health successfully offset this pressure through growth in its Carelon operating revenue, which increased by 5.00% to USD 19.30 billion. The segment also saw an improvement in operating margins to 4.70%, highlighting operational efficiency gains. The company's Health Benefits segment posted a 1.00% operating margin in the third quarter. Key financial metrics include a trailing price-to-earnings ratio of 18.48 and a 52-week trading range between USD 274.84 and USD 450.69, reflecting investor confidence in its strategic growth initiatives.