AI Takeaway
ELV posted FY2025 revenue of $199.1B (+12.5% YoY) driven by membership growth, but operating income fell 8.4% to $7.2B as medical cost pressures compressed the operating margin to 3.6%, resulting in net income declining 5.3% to $5.7B.
Revenue
$199.13B
++12.49% YoY
EPS (Basic)
$25.28
-2.05% YoY
Operating Income
$7.2B
-8.43% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue surged 12.5% YoY to $199.1B in FY2025, up from $177.0B in FY2024, reflecting continued growth in government-sponsored (Medicaid and Medicare) and commercial membership. This top-line expansion demonstrates ELV's scale as one of the largest U.S. managed care organizations.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Despite robust revenue growth, operating income declined 8.4% to $7.2B from $7.9B, compressing the operating margin by approximately 83 basis points to 3.6%. This reflects elevated medical costs — a sector-wide challenge — outpacing premium revenue growth, a dynamic that has pressured managed care margins broadly.
Source: Source: 10-K Income Statement (XBRL Financial Data)
SG&A expenses increased 4.8% YoY to $21.0B, a slower pace than revenue growth, suggesting some operating leverage on administrative costs. However, this was insufficient to offset the impact of rising medical costs on overall profitability.
Source: Source: 10-K Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockELV's operating margin compressed to 3.6% in FY2025 from 4.4% in FY2024, driven by rising medical costs that outpaced premium growth. If medical utilization trends — particularly in Medicaid and Medicare Advantage — continue to exceed pricing assumptions, profitability could deteriorate further. This is the most immediate financial risk facing the company.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $3.33 versus the $3.13 analyst consensus — a +6.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $199.13B | $177.01B | +12.49% |
Cost of Revenue | $21.18B | $19.75B | +7.23% |
Operating Income | $7.2B | $7.86B | -8.43% |
Net Income | $5.66B | $5.98B | -5.32% |
EPS (Basic) | $25.28 | $25.81 | -2.05% |
EPS (Diluted) | $25.21 | $25.68 | -1.83% |
SG&A Expense | $20.98B | $20.02B | +4.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $121.49B | $116.89B | +3.94% |
Current Assets | $63B | $58.94B | +6.89% |
Total Liabilities | $77.47B | $75.46B | +2.66% |
Current Liabilities | $41.03B | $40.58B | +1.12% |
Stockholders' Equity | $43.88B | $41.31B | +6.21% |
Cash & Equivalents | $9.49B | $8.29B | +14.51% |
Long-Term Debt | $31.9B | $30.87B | +3.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.29B | $5.81B | -26.14% |
Investing Cash Flow | $-1.34B | $-5.17B | +73.99% |
Financing Cash Flow | $-1.74B | $1.19B | -245.68% |
Dividends Paid | $1.53B | $1.51B | +1.39% |
Share Buybacks | $2.6B | $2.9B | -10.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 3.6% | 4.4% | -0.83% |
Net Margin | 2.8% | — | — |
ROE | 12.9% | — | — |
ROA | 4.7% | — | — |
Current Ratio | $1.535 | — | — |
Debt to Equity | $1.765 | — | — |
Other companies in Managed Health Care
ELV's total revenue grew 12.5% YoY to $199.1B in FY2025, up from $177.0B in FY2024. This growth was driven by expanded membership across government-sponsored programs (Medicaid, Medicare) and commercial health plans, reflecting ELV's scale as one of the largest U.S. managed care organizations.
Despite 12.5% revenue growth, ELV's net income declined 5.3% to $5.7B and operating income fell 8.4% to $7.2B in FY2025. The primary driver was rising medical costs that outpaced premium revenue growth, compressing the operating margin from 4.4% to 3.6% — a challenge affecting the broader managed care industry.
The key takeaways from ELV's FY2025 results are: revenue hit a record $199.1B (+12.5%), but profitability declined with net income falling to $5.7B (-5.3%) and diluted EPS dropping to $25.21 (-1.8%). Operating cash flow fell sharply by 26.1% to $4.3B, and the company returned $4.1B to shareholders through dividends and buybacks despite the earnings pressure.
Based on the financial data, the most significant risks for ELV in FY2025 include: (1) medical cost ratio deterioration compressing margins, (2) exposure to government program reimbursement changes (Medicaid/Medicare), and (3) elevated leverage with $31.9B in long-term debt at a time when operating cash flow declined 26.1% to $4.3B. These risks could sustain pressure on profitability if medical utilization trends do not normalize.
ELV maintains adequate liquidity with a current ratio of 1.54x and cash of $9.5B (+14.5% YoY), but financial health shows some strain: operating cash flow fell 26.1% to $4.3B, the debt-to-equity ratio stands at 1.77x with $31.9B in long-term debt, and operating margins compressed to 3.6%. The company remains profitable with $43.9B in stockholders' equity, but the declining cash flow trend is a key metric to watch.