Analysis of Reportable Segments
Elevance Health Inc. operates in 4 segments: Health Benefits; CarelonRx; Carelon Services; and Corporate & Other.
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Segment Profit Margin
Elevance Health Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Health Benefits | |||||
| CarelonRx | |||||
| Carelon Services | |||||
| Corporate & Other |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibited varied performance across the observed period. The Health Benefits segment demonstrated initial stability, followed by a notable decline in the most recent year. CarelonRx showed relative consistency, while Carelon Services experienced significant fluctuation. The Corporate & Other segment consistently reported substantial negative profit margins, with a marked increase in losses over time.
- Health Benefits
- The Health Benefits segment’s profit margin began at 4.81% in 2021, decreased to 4.35% in 2022, recovered slightly to 4.64% in 2023, then declined to 4.15% in 2024. A significant decrease to 2.49% was observed in 2025. This represents a cumulative decline over the five-year period, indicating potential pressures on profitability within this segment.
- CarelonRx
- CarelonRx maintained a relatively stable profit margin between 2021 and 2023, fluctuating between 6.55% and 6.62%. A slight increase to 6.04% occurred in 2024, followed by a decrease to 5.57% in 2025. While exhibiting some variation, the segment’s profitability remained comparatively consistent throughout the period.
- Carelon Services
- The Carelon Services segment experienced the most volatility. Profit margin increased substantially from 1.85% in 2021 to 4.16% in 2022, then rose further to 4.81% in 2023. However, a decline to 3.99% was noted in 2024, followed by a further decrease to 3.39% in 2025. This suggests potential instability or sensitivity to external factors within this segment.
- Corporate & Other
- The Corporate & Other segment consistently reported negative profit margins. The losses were substantial, beginning at -170.53% in 2021, improving to -35.59% in 2022, but then worsening significantly to -217.95% in 2023 and -411.00% in 2024. A substantial, though still negative, improvement to -72.79% was observed in 2025. The consistently large negative margins indicate this segment is a significant drain on overall profitability, and the increasing losses until 2024 are a cause for concern.
Overall, the segment performance indicates a divergence in profitability trends. While CarelonRx demonstrated relative stability, Health Benefits and Carelon Services experienced declines or volatility. The consistently negative and increasing losses within the Corporate & Other segment warrant further investigation.
Segment Profit Margin: Health Benefits
Elevance Health Inc.; Health Benefits; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | |||||
| Operating revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × ÷ =
The Health Benefits segment demonstrated fluctuating performance between 2021 and 2025. Operating gains generally increased initially, then experienced a decline towards the end of the analyzed period. Simultaneously, operating revenue consistently increased throughout the five years. However, the segment profit margin exhibited a more complex pattern, initially decreasing, then recovering slightly, before ultimately declining significantly.
- Operating Gain (Loss)
- Operating gain increased from US$5,850 million in 2021 to US$6,022 million in 2022, representing a modest increase. Further growth was observed in 2023, reaching US$6,888 million. However, operating gain decreased to US$6,243 million in 2024 and experienced a more substantial decline to US$4,158 million in 2025. This suggests potential challenges in maintaining profitability towards the end of the period.
- Operating Revenue
- Operating revenue showed consistent growth throughout the period. It increased from US$121,728 million in 2021 to US$138,484 million in 2022, US$148,571 million in 2023, US$150,275 million in 2024, and reached US$167,094 million in 2025. This indicates a sustained expansion in the segment’s business activity.
- Segment Profit Margin
- The segment profit margin began at 4.81% in 2021, then decreased to 4.35% in 2022. A slight recovery was seen in 2023, with the margin increasing to 4.64%. However, it decreased again to 4.15% in 2024, and experienced a significant decline to 2.49% in 2025. This suggests that while revenue increased, the segment’s ability to translate revenue into profit diminished, particularly in the final year. The decreasing margin, despite revenue growth, warrants further investigation into cost structures and pricing strategies.
The divergence between revenue growth and profit margin decline in 2025 is a key observation. While the segment continues to expand its revenue base, its profitability is under pressure. This trend could indicate increasing costs, competitive pricing pressures, or shifts in the business mix within the Health Benefits segment.
Segment Profit Margin: CarelonRx
Elevance Health Inc.; CarelonRx; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | |||||
| Operating revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × ÷ =
The segment experienced consistent growth in operating gain between 2021 and 2025. Operating gain increased from US$1,684 million in 2021 to US$2,418 million in 2025. A similar upward trend is observed in operating revenue, rising from US$25,431 million in 2021 to US$43,400 million in 2025.
- Segment Profit Margin Trend
- The segment profit margin exhibited fluctuations over the five-year period. It began at 6.62% in 2021, decreased to 6.55% in 2022, and then declined more significantly to 5.84% in 2023. A modest recovery to 6.04% occurred in 2024, followed by a further decrease to 5.57% in 2025. While operating revenue and gain increased, the profit margin did not follow the same trajectory, indicating potential pressures on profitability.
Despite the growth in both operating gain and revenue, the segment profit margin demonstrates a generally decreasing trend when viewed across the entire period. The largest single-year decline in profit margin occurred between 2022 and 2023. The most recent year, 2025, shows the lowest profit margin within the observed timeframe, suggesting increasing costs or pricing pressures relative to revenue growth.
- Revenue and Profit Relationship
- The increasing operating revenue did not translate proportionally into increased profit margin. This suggests that the cost of generating each dollar of revenue is rising, or that pricing power is limited. Further investigation into the cost structure of the segment would be necessary to determine the primary drivers of this trend.
The segment’s ability to maintain or improve its profit margin will be crucial for sustained financial performance, particularly as revenue continues to grow. Monitoring the factors impacting the segment profit margin will be important for future strategic decision-making.
Segment Profit Margin: Carelon Services
Elevance Health Inc.; Carelon Services; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | |||||
| Operating revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × ÷ =
The Carelon Services segment demonstrated a positive trajectory in operating gain over the five-year period, while operating revenue experienced substantial growth. However, the segment profit margin exhibited fluctuations, ultimately decreasing from its peak in 2022.
- Operating Gain
- Operating gain increased consistently from US$187 million in 2021 to US$960 million in 2025. The most significant year-over-year increase occurred between 2021 and 2022, with a gain of US$348 million. Growth continued, though at a decreasing rate, through 2023 and 2024, before accelerating again to reach US$960 million in 2025.
- Operating Revenue
- Operating revenue grew substantially throughout the period, rising from US$10,130 million in 2021 to US$28,316 million in 2025. The largest absolute increase in operating revenue was observed between 2024 and 2025, adding US$10,355 million. Revenue growth accelerated in 2024, indicating a potential shift in the segment’s scale.
- Segment Profit Margin
- The segment profit margin initially increased from 1.85% in 2021 to 4.16% in 2022, representing a significant improvement. It continued to rise, reaching 4.81% in 2023. However, the margin then decreased to 3.99% in 2024 and further to 3.39% in 2025. This decline in profit margin, despite substantial revenue growth, suggests increasing costs or pricing pressures within the segment. While operating gains increased in absolute terms, the rate of profit generation relative to revenue diminished in the latter years of the observed period.
The divergence between revenue growth and profit margin trends warrants further investigation. The increasing operating revenue is positive, but the declining segment profit margin suggests potential inefficiencies or competitive pressures that are impacting profitability.
Segment Profit Margin: Corporate & Other
Elevance Health Inc.; Corporate & Other; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | |||||
| Operating revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × ÷ =
The financial performance of the Corporate & Other segment demonstrates significant volatility and consistent losses over the observed period. Operating results deteriorated substantially from 2021 to 2024 before showing some improvement in 2025, though remaining negative.
- Operating Gain (Loss)
- The segment reported an operating loss of US$162 million in 2021. This loss increased to US$142 million in 2022, indicating a slight reduction in the magnitude of the loss. However, 2023 saw a dramatic increase in the operating loss, reaching US$1,044 million. The loss continued to worsen in 2024, peaking at US$1,270 million. A substantial improvement occurred in 2025, with the operating loss decreasing to US$337 million, though still representing a negative result.
- Operating Revenue
- Operating revenue exhibited an increasing trend from 2021 to 2023. Revenue increased from US$95 million in 2021 to US$399 million in 2022, and further to US$479 million in 2023. A decrease was observed in 2024, with revenue falling to US$309 million. Revenue then increased again in 2025, reaching US$463 million. Despite these fluctuations, revenue levels remained below the peak achieved in 2023.
- Segment Profit Margin
- The segment profit margin was significantly negative throughout the period. In 2021, the margin was -170.53%. It improved to -35.59% in 2022, but then deteriorated sharply to -217.95% in 2023. The margin reached its lowest point in 2024 at -411.00%. A considerable, though incomplete, recovery was seen in 2025, with the margin improving to -72.79%. The consistently negative margins indicate that the segment’s operating expenses consistently exceeded its operating revenue.
The substantial losses in the Corporate & Other segment, particularly the peak in 2024, warrant further investigation. While the 2025 results show improvement, the segment continues to operate at a loss, and the profit margin remains considerably negative. The relationship between revenue fluctuations and the dramatic swings in operating loss should be examined to understand the underlying drivers of the segment’s performance.
Operating revenue
Elevance Health Inc., operating revenue by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Health Benefits | |||||
| CarelonRx | |||||
| Carelon Services | |||||
| Carelon | |||||
| Corporate & Other | |||||
| Eliminations | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Operating revenue demonstrated a consistent upward trajectory between 2021 and 2025. While the rate of growth fluctuated across segments, the overall trend indicates expansion of the company’s revenue base. The largest contributor to revenue, Health Benefits, exhibited steady growth throughout the period. Significant increases were also observed in the Carelon segments, particularly Carelon Services, which experienced accelerating growth in later years. Corporate & Other revenue remained relatively small and volatile, while Eliminations consistently offset a substantial portion of the gross revenue.
- Health Benefits Revenue
- Health Benefits revenue increased from US$121,728 million in 2021 to US$167,094 million in 2025, representing a cumulative growth of approximately 37.2%. The growth rate slowed slightly between 2022 and 2023, but resumed a similar pace in subsequent years. This segment consistently represented the largest portion of total revenue.
- CarelonRx Revenue
- CarelonRx revenue grew from US$25,431 million in 2021 to US$43,400 million in 2025, a substantial increase of roughly 70.8%. Growth was consistent year-over-year, indicating a strong performance within this segment. This represents a significant contribution to the overall revenue expansion.
- Carelon Services Revenue
- Carelon Services experienced the most rapid growth among the reported segments. Revenue increased from US$10,130 million in 2021 to US$28,316 million in 2025, a cumulative increase of approximately 179.3%. The growth rate accelerated notably between 2023 and 2025, suggesting increasing market penetration or service demand.
- Carelon (Combined)
- The combined revenue from the Carelon segments (Rx, Services, and the overall Carelon figure) demonstrates a significant contribution to overall growth. Total Carelon revenue increased from US$35,561 million in 2021 to US$71,716 million in 2025, representing a cumulative growth of over 101.6%. This indicates a successful strategy of expanding services within the Carelon portfolio.
- Corporate & Other Revenue
- Revenue from Corporate & Other activities remained a small percentage of total revenue, fluctuating between US$95 million and US$479 million. While showing some increase overall, the volatility suggests this segment is not a primary driver of revenue growth.
- Eliminations
- Eliminations, representing intercompany transactions, consistently reduced the reported total revenue. The absolute value of these eliminations increased over time, from US$20,441 million in 2021 to US$41,689 million in 2025. This increase is likely correlated with the growth of the individual segments and increased intercompany activity.
- Total Revenue
- Total operating revenue increased from US$136,943 million in 2021 to US$197,584 million in 2025, representing a cumulative growth of approximately 44.3%. The growth rate was strongest between 2024 and 2025, indicating a potential acceleration in overall business performance.
Operating gain (loss)
Elevance Health Inc., operating gain (loss) by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Health Benefits | |||||
| CarelonRx | |||||
| Carelon Services | |||||
| Carelon | |||||
| Corporate & Other | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Operating gain exhibited varied performance across reportable segments between 2021 and 2025. The Health Benefits segment demonstrated initial growth followed by a substantial decline, while CarelonRx and Carelon Services consistently increased their operating gains. The Carelon segment, encompassing the aforementioned, also showed consistent growth. Corporate & Other experienced a significant shift from modest gains to substantial losses. Overall, total operating gain peaked in 2023 before declining in subsequent years.
- Health Benefits
- The Health Benefits segment generated operating gains of US$5.85 billion in 2021, increasing to US$6.022 billion in 2022. Gains continued to rise, reaching US$6.888 billion in 2023, before decreasing to US$6.243 billion in 2024 and falling significantly to US$4.158 billion in 2025. This represents a considerable contraction in operating gain over the latter period.
- CarelonRx
- CarelonRx demonstrated consistent growth in operating gain throughout the analyzed period. Starting at US$1.684 billion in 2021, it increased to US$1.868 billion in 2022, US$1.975 billion in 2023, US$2.172 billion in 2024, and further to US$2.418 billion in 2025. This indicates a steady upward trend in the segment’s profitability.
- Carelon Services
- Operating gain from Carelon Services also exhibited consistent growth. Beginning at US$187 million in 2021, it rose to US$535 million in 2022, US$680 million in 2023, US$717 million in 2024, and reached US$960 million in 2025. The rate of increase appears to be accelerating towards the end of the period.
- Carelon (Combined)
- The combined Carelon segment, including CarelonRx and Carelon Services, showed a consistent upward trajectory in operating gain. From US$1.871 billion in 2021, it increased to US$2.403 billion in 2022, US$2.655 billion in 2023, US$2.889 billion in 2024, and US$3.378 billion in 2025. This growth is driven by the positive performance of its constituent parts.
- Corporate & Other
- The Corporate & Other segment experienced a significant shift in operating performance. It reported a loss of US$162 million in 2021 and US$142 million in 2022. Losses then widened considerably to US$1.044 billion in 2023 and US$1.270 billion in 2024, before decreasing to a loss of US$337 million in 2025. This segment represents a growing drag on overall profitability.
- Total Operating Gain
- Total operating gain increased from US$7.559 billion in 2021 to US$8.283 billion in 2022. It peaked at US$8.499 billion in 2023, then declined to US$7.862 billion in 2024 and further to US$7.199 billion in 2025. The decline in the Health Benefits segment and the increasing losses in Corporate & Other contributed to this downward trend.