What changed in this filing

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Item 1. Financial Statements

2026-04-22 compared with 2025-10-21 · 245 added, 410 removed, 672 unchanged (49% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

September 30,

2026 December 31,

7 unchanged sentences

Premium receivables, net

11,525 10,073

Self-funded receivables, net

1 unchanged sentence

Other current assets 7,169 5,344

Assets held for sale

Total current assets 67,032 63,001

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Other current liabilities 13,985 10,255

Liabilities held for sale

Total current liabilities 45,309 41,035

Long-term debt, less current portion 30,768 30,797

Reserves for future policy benefits 164 190

Deferred tax liabilities, net 1,786 2,110

19 unchanged sentences

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

(In millions, except per share data)

5 unchanged sentences

Net losses on financial instruments ( 78 ) ( 464 )

Gain (loss) on sale of business

— ( 39 ) — 201

Total revenues 50,181 48,891

6 unchanged sentences

Income before income tax expense

1,406 1,373 6,495 7,298

Income tax expense 544 613

Net income 1,760 2,184

Net loss attributable to noncontrolling interests

Net loss (gain) attributable to noncontrolling interests

Shareholders’ net income $ 1,764 $ 2,183

7 unchanged sentences

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

(In millions)

Net income $ 1,760 $ 2,184

Other comprehensive income, net of tax:

Change in net unrealized gains on investments 220 887 603 805

Change in non-credit component of impairment losses on investments 1 — ( 1 ) —

Change in net unrealized gains (losses) on net cash flow hedges ( 3 ) 2 5 8

Change in net periodic pension and postretirement costs 4 3 1 11

Change in future policy benefits ( 2 ) ( 1 ) ( 1 ) ( 2 )

Foreign currency translation adjustments ( 1 ) 7 1 2

Other comprehensive income 219 898 608 824

Net loss attributable to noncontrolling interests 2 8 — 4

Other comprehensive income (loss), net of tax:

Net unrealized investment gains (losses)

Change in gross unrealized investment gains (losses) ( 401 ) 253

Income tax effect 93 ( 60 )

Total change in unrealized investment gains (losses), net of tax ( 308 ) 193

Gross reclassification adjustment for net realized investment losses included in earnings 43 55

Income tax effect ( 10 ) ( 13 )

Change in net unrealized investment gains (losses) ( 275 ) 235

Pension and other benefits

Change during the period 4 3

Income tax effect ( 1 ) ( 8 )

Change in pension and other benefits 3 ( 5 )

Change during the period ( 20 ) 10

Income tax effect 2 ( 3 )

Change in other ( 18 ) 7

Other comprehensive income (loss) ( 290 ) 237

Net loss (gain) attributable to noncontrolling interests 4 ( 1 )

Other comprehensive income attributable to noncontrolling interests — ( 1 )

3 unchanged sentences

Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended

Three Months Ended

(In millions)

3 unchanged sentences

Net losses on financial instruments 78 464

Gain on sale of business — ( 201 )

Equity in net (earnings) losses of other invested assets ( 251 ) 15

Equity in net earnings of other invested assets

( 305 ) ( 126 )

Depreciation and amortization 354 373

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Income taxes 644 357

Other, net 26 57

Net cash provided by operating activities 4,332 1,017

5 unchanged sentences

Purchases of subsidiaries, net of cash acquired 5 4

Proceeds from sale of subsidiaries, net of cash sold — 399

Purchases of property and equipment ( 235 ) ( 196 )

Other, net ( 10 ) ( 25 )

Net cash used in investing activities ( 1,808 ) ( 3,529 )

Net cash provided by (used in) investing activities

( 1,642 ) 103

Financing activities

Proceeds from long-term borrowings 2,994 2,580

Repayments of long-term borrowings ( 750 ) ( 1,250 )

Proceeds from short-term borrowings 724 —

Repayments of short-term borrowings, net of issuances ( 1,175 ) ( 75 )

Repayments of short-term borrowings

( 150 ) ( 115 )

Changes in securities lending payable 313 290

6 unchanged sentences

Net cash used in financing activities ( 2,515 ) ( 1,909 )

( 1,974 ) ( 215 )

Effect of foreign exchange rates on cash and cash equivalents ( 9 ) 1

1 unchanged sentence

Cash and cash equivalents at beginning of period 9,491 8,288

Cash and cash equivalents included in assets held for sale at end of period — ( 20 )

Cash and cash equivalents at end of period $ 9,657 $ 7,500

1 unchanged sentence

Elevance Health, Inc.

Consolidated Statements of Changes in Equity

Consolidated Statements of Changes in Total Equity

Total Shareholders’ Equity

1 unchanged sentence

Capital Retained

Earnings Accumulated

Comprehensive

Loss Noncontrolling

Earnings Accumulated Other Comprehensive Loss

Noncontrolling

Interests Total

(In millions) Number of

Value Net Unrealized Investment Gains (Losses) Pension and Other Benefits Other

December 31, 2025 220.7 $ 2 $ 8,938 $ 35,393 $ 108 $ ( 332 ) $ ( 227 ) $ 144 $ 44,026

Net income — — — 2,183 — 1 2,184

Other comprehensive gain

— — — — 236 1 237

Noncontrolling interests adjustment — — — — — 4 4

Repurchase and retirement of common stock, including excise tax ( 2.2 ) — ( 97 ) ( 799 ) — — ( 896 )

Dividends and dividend equivalents — — — ( 387 ) — — ( 387 )

Issuance of common stock under employee stock plans, net of related tax benefits 0.4 — 52 — — — 52

March 31, 2025 225.7 $ 2 $ 8,866 $ 34,546 $ ( 911 ) $ 117 $ 42,620

Net income — — — 1,743 $ — 1 $ 1,744

Other comprehensive gain

— — — — 151 1 152

Noncontrolling interests adjustment — — — — — 10 10

Repurchase and retirement of common stock, including excise tax ( 1.0 ) — ( 27 ) ( 354 ) — — ( 381 )

Dividends and dividend equivalents — — — ( 386 ) — — ( 386 )

Issuance of common stock under employee stock plans, net of related tax benefits 0.1 — 92 — — — 92

June 30, 2025 224.8 $ 2 $ 8,931 $ 35,549 $ ( 760 ) $ 129 $ 43,851

Net income (loss) — — — 1,764 — — — ( 4 ) 1,760

Other comprehensive gain

Other comprehensive income (loss)

— — — — ( 275 ) 3 ( 18 ) — ( 290 )

2 unchanged sentences

Issuance of common stock under employee stock plans, net of related tax benefits 0.3 — 58 — — — — — 58

September 30, 2025 222.0 $ 2 $ 8,908 $ 35,586 $ ( 543 ) $ 129 $ 44,082

Elevance Health, Inc.

Consolidated Statements of Changes in Equity (continued)

Total Shareholders’ Equity

Common Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Loss Noncontrolling

Interests Total

(In millions) Number of

March 31, 2026 217.4 $ 2 $ 8,845 $ 35,796 $ ( 167 ) $ ( 329 ) $ ( 245 ) $ 140 $ 44,042

December 31, 2024

1 unchanged sentence

— — — 2,183 — — — 1 2,184

Other comprehensive loss — — — — ( 52 ) — ( 52 )

Repurchase and retirement of common stock, including excise tax

( 1.1 ) — ( 44 ) ( 525 ) — — ( 569 )

Dividends and dividend equivalents — — — ( 382 ) — — ( 382 )

Issuance of common stock under employee stock plans, net of related tax benefits

0.5 — 59 — — — 59

March 31, 2024 232.5 $ 2 $ 8,883 $ 33,088 $ ( 1,365 ) $ 102 $ 40,710

— — — 2,300 — 1 2,301

Other comprehensive loss

Other comprehensive income (loss)

— — — — 234 ( 5 ) 7 1 237

5 unchanged sentences

0.4 — 52 — — — — — 52

June 30, 2024 231.9 $ 2 $ 9,001 $ 34,575 $ ( 1,387 ) $ 106 $ 42,297

Net income — — — 1,016 — ( 8 ) 1,008

Other comprehensive gain

— — — — 898 — 898

Noncontrolling interests adjustment

— — — — — 6 6

Repurchase and retirement of common stock ( 0.1 ) — ( 5 ) ( 55 ) — — ( 60 )

Dividends and dividend equivalents — — — ( 379 ) — — ( 379 )

Issuance of common stock under employee stock plans, net of related tax benefits 0.1 — 109 — — — 109

September 30, 2024 231.9 $ 2 $ 9,105 $ 35,157 $ ( 489 ) $ 104 $ 43,879

March 31, 2025 225.7 $ 2 $ 8,866 $ 34,546 $ ( 289 ) $ ( 404 ) $ ( 218 ) $ 117 $ 42,620

See accompanying notes.

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Notes to Consolidated Financial Statements

September 30, 2025

March 31, 2026

(In Millions, Except Per Share Data or As Otherwise Stated Herein)

References to the terms “we,” “our,” “us” or “Elevance Health” used throughout these Notes to the Consolidated Financial Statements refer to Elevance Health, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries.

References to the terms “we,” “our,” “us” or “Elevance Health” used throughout these Notes to Consolidated Financial Statements refer to Elevance Health, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries.

References to the “states” include the District of Columbia and Puerto Rico unless the context otherwise requires.

Elevance Health is a health company with the purpose of improving the health of humanity.

We are one of the largest health insurers in the United States in terms of medical membership, serving approximately 45.4 million medical members through our affiliated health plans as of September 30, 2025.

We offer a broad spectrum of network-based managed care risk-based plans to Individual, Employer Group, Medicaid and Medicare markets.

In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, provider network access, medical management, care management, wellness programs, actuarial services and other administrative services.

We provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employees Program ® (“FEP ® ”).

In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, care provider network access, medical management, care management, wellness programs, actuarial services and other administrative services.

Across these markets, we generate revenue through risk-based premiums, administrative fees from self-funded employers and pharmacy and health service fees through our Carelon businesses.

We provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employee Program ® (“FEP ® ”).

We provide an array of specialty services both to customers of our subsidiary health plans and to unaffiliated health plans, including pharmacy services, stop loss insurance, dental, vision and supplemental health insurance benefits, as well as integrated health services.

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generally accepted accounting principles (“GAAP”) for interim financial reporting.

Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements.

We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our Annual Report on Form 10-K for the year ended

December 31, 2024 (the “2024 Annual Report on Form 10-K”), unless the information contained in those disclosures materially changed or is required by GAAP.

In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three and nine months ended September 30, 2025 and 2024 have been recorded.

The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025, or any other period.

Accordingly, they do not

include all the information and footnotes required by GAAP for annual financial statements.

We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report on Form 10-K”), unless the information contained in those disclosures materially changed or is required by GAAP.

In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31, 2026 and 2025 have been recorded.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026, or any other period.

The seasonal nature of portions of our healthcare and related benefits business, as well as competitive and other market conditions, may cause full-year results to differ from estimates based upon our interim results of operations.

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Cash and Cash Equivalents:

We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits, and we have cash and cash equivalents on deposit to meet certain regulatory and derivative financial instrument requirements.

These amounts totaled $ 397 and $ 409 at September 30, 2025 and December 31, 2024, respectively, and are included in the “Cash and cash equivalents” line on our consolidated balance sheets.

Cash and cash equivalents includes available cash and all highly liquid investments with maturities of three months or less when purchased.

These amounts totaled $ 527 and $ 348 at March 31, 2026 and December 31, 2025, respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets.

We classify fixed maturity securities in our investment portfolio as “available-for-sale” and report those securities at fair value.

3 unchanged sentences

For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities, but we expect that we will not fully recover the amortized cost basis, we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income.

The non-credit component of the impairment is recognized in the consolidated statements of comprehensive income.

Furthermore, unrealized losses entirely caused by non-credit-related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in “Accumulated other comprehensive loss.”

The non-credit component of the impairment is recognized in “Accumulated other comprehensive loss.” Furthermore, unrealized losses entirely caused by non-credit-related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in “Accumulated other comprehensive loss.”

The credit component of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security.

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The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities.

Such adjustments are reported within net investment income.

The changes in fair value of our marketable equity securities are recognized in our consolidated statements of income within net losses on financial instruments.

Certain marketable equity securities are held to satisfy contractual obligations or for other business purposes and are reported under the caption “Other invested assets” in our consolidated balance sheets.

Mortgage loans on real estate are classified as held for investment and are reported at their amortized cost basis net of allowance under the caption “Other invested assets” in our consolidated balance sheets.

Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs.

We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management.

The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets.

Such adjustments are reported within “Net investment income” in our consolidated statements of income.

The changes in fair value of our marketable equity securities are recognized in our results of operations within “Net losses on financial instruments.” Certain marketable equity securities are held to satisfy contractual obligations and are reported under the caption “Other invested assets” in our consolidated balance sheets.

We have investments in limited partnerships (“LPs”) and companies in which our ownership interest may enable us to influence the operating or financial decisions of the investee company, including unconsolidated variable interest entities.

3 unchanged sentences

In applying the equity method (including assessment for other-than temporary impairment), we use financial information provided by the LPs and investee companies, generally on a one-to three-month lag.

We consolidate investee companies in certain other instances where we are deemed to exercise control, or we are considered the primary beneficiary of a variable interest entity.

We consolidate investee companies in certain other instances where it is deemed to exercise control or is considered the primary beneficiary of a variable interest entity.

Mortgage loans on real estate are classified as held for investment and are reported at their amortized cost basis net of loss allowance under the caption “Other invested assets” in our consolidated balance sheets.

Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs.

We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management.

The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets.

Investment income is recorded when earned.

All securities sold resulting in investment gains and losses are recorded on the trade date.

All securities sold resulting in investment realized gains and losses are recorded on the trade date.

Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold.

We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral.

We recognize the collateral as an asset, which is reported under the caption “Other current assets” in our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category in our consolidated balance sheets.

Under Financial Accounting Standards Board (“FASB”) guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities, we recognize the collateral as an asset, which is reported in “Other current assets” in our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category in our consolidated balance sheets.

Unrealized gains or losses on securities lending collateral are included in “Accumulated other comprehensive loss” as a separate component of shareholders’ equity.

7 unchanged sentences

Premium receivables include the uncollected amounts from insured groups, individuals and government programs.

Premium receivables are reported net of an allowance for doubtful accounts of $ 168 and $ 183 at September 30, 2025 and December 31, 2024, respectively.

Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers for administrative services.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 109 and $ 115 at September 30, 2025 and December 31, 2024, respectively.

Premium receivables are reported net of an allowance for doubtful accounts of $ 205 and $ 167 at March 31, 2026 and December 31, 2025, respectively.

Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 145 and $ 145 at March 31, 2026 and December 31, 2025, respectively.

Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades that have not yet settled, accrued investment income and other miscellaneous amounts due to us.

These receivables are reported net of an allowance for doubtful accounts of $ 1,470 and $ 1,385 at September 30, 2025 and December 31, 2024, respectively.

During the nine months ended September 30, 2025, we realized a $ 237 settlement with a value-based care provider, which allowed us to release $ 129 from the allowance for doubtful accounts.

Of the settlement amount, $ 154 pertains to services rendered in 2024, with the remaining $ 83 attributable to 2025.

These receivables are reported net of an allowance for doubtful accounts of $ 1,618 and $ 1,509 at March 31, 2026 and December 31, 2025, respectively.

Revenue Recognition:

Premiums for risk-based contracts are recognized as revenue over the period insurance coverage is provided, and, if applicable, net of amounts recognized for rebates based on medical loss ratio or regulatory requirements.

Premiums for risk-based contracts are recognized as revenue over the period insurance coverage is provided, and, if applicable, net of amounts recognized for medical loss ratio rebates, risk adjustment, reinsurance and risk corridor under contractual premium stabilization arrangements, the Affordable Care Act (“ACA”) or other regulatory requirements.

Premiums may also include performance incentives and penalties, which are recognized based on contractual terms.

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The determination of whether services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.

The estimation of variable consideration to be recognized requires significant judgment in the determination of the level of achievement of performance incentives, service level achievements subject to performance penalties, and the completion level of tasks subject to implementation fees.

The estimation of variable consideration to be

recognized requires significant judgment in the determination of the level of achievement of performance incentives, service level achievements subject to performance penalties, and the completion level of tasks subject to implementation fees.

Product revenue represents services performed by CarelonRx for unaffiliated pharmacy customers and includes ingredient costs (net of any rebates or discounts), including co-payments made by or on behalf of the customer, and service fees.

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Product revenue for pharmacy services is recognized using the gross method at the negotiated contract price when CarelonRx has concluded that it is the principal, and it controls the services before prescription drugs are transferred to the customer.

CarelonRx determined it is the principal due to its contractual rights to design and develop a listing of prescription drugs offered to the customer (formulary management);

CarelonRx determines whether it is the principal due to its contractual rights to design and develop a listing of prescription drugs offered to the customer (formulary management);

its control over establishing the pharmacy network available to the customer to have its prescription fulfilled (network management);

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CarelonRx recognizes revenue when control of the prescription drugs is transferred to customers, in an amount it expects to be entitled to in exchange for the products or services provided.

For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheets at September 30, 2025 or December 31, 2024.

For the three and nine months ended September 30, 2025 and 2024, revenue recognized from performance obligations related to prior periods, such as changes in transaction price, were not material.

For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheets at March 31, 2026 or December 31, 2025.

For the three months ended March 31, 2026 and 2025, revenue recognized from performance obligations related to prior periods, such as due to changes in transaction price, was not material.

For contracts that have an original, expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material.

Recently Adopted Accounting Guidance:

In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No.

2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60):

Recognition and Initial Measurement (“ASU 2023-05”).

ASU 2023-05 clarifies existing guidance to reduce diversity in practice and requires a joint venture to recognize and initially measure its assets and liabilities using a new basis of accounting, at fair value, upon formation.

These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.

We adopted ASU 2023-05 as of January 1, 2025.

The adoption of ASU 2023-05 did not have an impact on our financial statements.

Recent Accounting Guidance Not Yet Adopted:

In December 2023, the FASB issued Accounting Standards Update No.

2023-09, Income Taxes (Topic 740) (“ASU 2023-09”).

The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information.

ASU 2023-09 is effective for our fiscal years beginning after December 15, 2024, however, these disclosures are not required for interim periods.

The amendments are to be applied on a prospective basis, although retrospective adoption is permitted.

We do not believe the adoption of ASU 2023-09 will have a material impact on our consolidated financial statements or disclosures.

In July 2025, the FASB issued Accounting Standards Update No.

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Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”).

This standard introduces a practical expedient for all entities when estimating expected credit losses on current accounts receivable and contract assets arising from transactions under Accounting Standards Codification Topic (“ASC”) 606.

Under the practical expedient, entities may assume that conditions at the balance sheet date remain unchanged over the life of the asset, reducing the need to prepare complex macroeconomic forecasts for short-term balances.

ASU 2025-05 is effective for our fiscal years beginning after December 15, 2025, and interim periods within such fiscal years, with prospective application required.

Early adoption is permitted.

We are currently assessing the impact of ASU 2025-05 on our consolidated financial statements and related disclosures.

ASU 2025-05 became effective for our fiscal years beginning after December 15, 2025, and interim periods within such fiscal years, with prospective application required.

We adopted these amendments on January 1, 2026 and applied the amendments on a prospective basis.The adoption of ASU 2025-05 did not have an impact on our consolidated financial statements and disclosures.

Recent Accounting Guidance Not Yet Adopted:

In November 2024, the FASB issued Accounting Standards Update No.

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Disaggregation of Income Statement Expenses (“ASU 2024-03”).

This standard requires additional expense detail in the footnotes for items such as inventory purchases, employee compensation, depreciation, and intangible asset amortization.

Public companies must also provide a

qualitative description of remaining expense amounts not separately disclosed, as well as the definition and total amount of selling expenses.

ASU 2024-03 is effective for our fiscal year beginning after December 15, 2026, and interim periods within our fiscal years beginning after December 15, 2027.

This standard requires additional expense breakdowns in the footnotes for items such as inventory purchases, employee compensation, depreciation, and intangible asset amortization.

Public companies must also provide a qualitative description of remaining expense amounts not separately disclosed, as well as the definition and total amount of selling expenses.

ASU 2024-03 is effective for our fiscal year beginning after December 15, 2026, and for interim periods within our fiscal year beginning after December 15, 2027.

The amendments are to be applied either prospectively to financial statements issued for reporting periods after the effective date of the update, or retrospectively to all prior periods presented in the financial statements.

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ASU 2025-06 is effective for our fiscal years beginning after December 15, 2027, and interim periods within such fiscal years, with early adoption permitted.

Entities may adopt the amendments prospectively, retrospectively, or under a modified transition approach.

adopt the amendments prospectively, retrospectively, or under a modified transition approach.

We are currently evaluating the impact of ASU 2025-06 on our consolidated financial statements and related disclosures.

There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2025 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations, cash flows or disclosures.

Business Acquisitions

Completed Acquisitions

On December 31, 2024, we completed our acquisition of Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA, LLC (“Centers”).

Centers is a managed long-term care plan that serves New York state Medicaid and dual-eligible Medicaid/Medicare members, enabling adults with long-term care needs and disabilities to live safely and independently in their own home.

This acquisition aligns with our strategic plan to grow the Health Benefits segment and leverage industry-leading expertise while serving Medicaid and dual-eligible Medicaid/Medicare populations.

As of September 30, 2025, the purchase price was allocated to the tangible and intangible net assets acquired based on management's estimates of their fair values, of which $ 211 has been allocated to finite-lived intangible assets, $ 690 to indefinite-lived intangible assets and $ 246 to goodwill.

The majority of the goodwill is not deductible for income tax purposes.

As of September 30, 2025, the initial accounting for the acquisition has not been finalized.

The proforma effects of this acquisition for prior periods along with revenue and net income for the three and nine months ended September 30, 2025 were not material to our consolidated results of operations.

On December 10, 2024, we completed our acquisition of RSV QOZB LTSS, Inc.

and certain affiliated entities (“CareBridge”), a value-based healthcare company that manages home and community-based services for Medicaid and dual-eligible Medicaid/Medicare members receiving long-term services and support.

This acquisition aligns with Carelon Services’ care at home strategy, and our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve.

As of September 30, 2025, the purchase price was allocated to the tangible and intangible net assets acquired based on management's estimates of their fair values, of which $ 305 has been allocated to finite-lived intangible assets, and $ 1,811 to goodwill.

The purchase price includes a contingent consideration payable with a fair value of $ 27 related to an earnout arrangement based on 2025 and 2026 earnings of CareBridge.

The majority of the goodwill is not deductible for income tax purposes.

As of September 30, 2025, the initial accounting for the acquisition has not been finalized.

Business Optimization Initiative

In the third quarter of 2023, based on a strategic review of our operations, assets and investments, management implemented the “2023-2024 Business Efficiency Program” to enhance operating efficiency, refine the focus of our investments and optimize our physical footprint.

The 2023-2024 Business Efficiency Program included the write-off of certain information technology assets and contract exit costs, a reduction in staff including the relocation of certain job functions, and the impairment of assets associated with the closure or partial closure of data centers and offices.

The 2023-2024 Business Efficiency Program was finalized as of December 31, 2024, except as to cash outlays related to personnel-related costs associated with this program, which are expected to be paid through 2025.

The ending liability balances related to the employee termination costs under the 2023-2024 Business Efficiency Program at September 30, 2025 and December 31, 2024 were $ 109 and $ 224 , respectively.

During the nine months ended September 30, 2025, $ 111 of payments were made, an d $ 4 was released from the liability.

Operating Model Transformation

In the first quarter of 2026, based on a strategic review of our operations, assets and investments, management implemented the 2026 - 2027 Operating Model Transformation Program (the “Transformation Program”) to streamline decision-making, simplify organizational structures, and enhance the use of advanced technologies, including artificial intelligence, across the enterprise.

The Transformation Program includes initiatives to reduce organizational layers, realign roles and responsibilities, and design workflows to support more efficient, technology-enabled operations.

These actions also include the modernization of certain information technology platforms, targeted workforce reductions and role realignments.

Actions to be taken under the Transformation Program were ongoing as of March 31, 2026.

Cash outlays associated with this program, which primarily relate to the personnel-related costs, are expected to be paid through 2028.

In the first quarter of 2026, we incurred $ 129 of costs towards the Transformation Program, primarily for personnel-related charges for the reduction and/or relocation of staff, which included severance and related costs.

These charges were recognized as operating expense in the Corporate & Other segment.

The ending liability balance related to the employee termination costs under the Transformation Program at March 31, 2026 were $ 127 , which included a $ 128 charge recognized during the quarter and payments of $ 1 made during the quarter.

Fixed Maturity Securities

A summary of current and long-term fixed maturity securities, available-for-sale, at September 30, 2025 and December 31, 2024 is as follows:

A summary of current and long-term fixed maturity securities, available-for-sale, at March 31, 2026 and December 31, 2025 is as follows:

Losses Allowance

Losses Estimated

September 30, 2025

March 31, 2026

Fixed maturity securities:

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Other asset-backed securities primarily consist of collateralized loan obligations and other debt securities.

For fixed maturity securities in an unrealized loss position at September 30, 2025 and December 31, 2024, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position:

For fixed maturity securities in an unrealized loss position at March 31, 2026 and December 31, 2025, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position:

Less than 12 Months 12 Months or Greater

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Fair Value Gross

September 30, 2025

March 31, 2026

Fixed maturity securities:

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Total fixed maturity securities 1,207 $ 3,594 $ ( 71 ) 2,946 $ 4,208 $ ( 423 )

Unrealized losses on our securities shown in the table above have not been recognized into income because, as of September 30, 2025, we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their anticipated recovery.

Unrealized losses on our securities shown in the table above have not been recognized into income because, as of March 31, 2026, we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their anticipated recovery.

The declines in fair values are largely due to elevated interest rates driven by the higher rate of inflation and other market conditions.

Allowances for credit losses have been recorded in the amount of $ 13 and $ 6 at September 30, 2025 and December 31, 2024, respectively, for declines in fair value due to unfavorable changes in the credit quality characteristics that impact our assessment of collectability of principal and interest.

The amortized cost and fair value of fixed maturity securities at September 30, 2025, by contractual maturity, are shown below.

Allowances for credit losses have been recorded in the amount of $ 55 and $ 21 at March 31, 2026 and December 31, 2025, respectively, for declines in fair value due to unfavorable changes in the credit quality characteristics that impact our assessment of collectability of principal and interest.

The amortized cost and fair value of fixed maturity securities at March 31, 2026, by contractual maturity, are shown below.

Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations.

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Due after ten years 5,552 5,473

Mortgage-backed securities 5,356 5,237

Mortgage and other asset-backed securities

Total fixed maturity securities $ 27,298 $ 27,019

Equity Securities

A summary of current equity securities at September 30, 2025 and December 31, 2024 is as follows:

September 30, 2025 December 31, 2024

A summary of current equity securities at March 31, 2026 and December 31, 2025 is as follows:

March 31, 2026 December 31, 2025

Equity securities:

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Other Invested Assets

At September 30, 2025, “Other invested assets” include non-controlled joint ventures, including our minority interest ownership of approximately 40 % of Augusta Topco Holdings, L.P.

A summary of other invested assets at March 31, 2026 and December 31, 2025 is as follows:

March 31, 2026 December 31, 2025

Other invested assets:

Company-owned life insurance

$ 2,986 $ 2,927

Equity method investments and joint ventures

Limited partnership investments

$ 11,009 $ 10,839

At March 31, 2026, “Other invested assets” included non-controlled equity method investments and joint ventures, including our minority interest ownership of approximately 40 % of Augusta Topco Holdings, L.P.

(“Mosaic Health”) and our 40 % minority interest ownership of Project Freedom Holdings, LLC, which is the ultimate parent of LIBERTY Dental Plan Corporation (“Liberty Dental”).

On August 6, 2024, we made an investment of $ 2,580 , consisting of cash and the net put option discussed in Note 6, “Derivative Financial Instruments”, in Mosaic Health.

Mosaic Health is a joint venture with Clayton, Dubilier & Rice (“CD&R”) that is designed to accelerate innovation in care delivery across multiple regions in the United States by bringing together certain care delivery and enablement assets of Carelon Management Services Inc.

(“CMSI Assets”), a Carelon Health business, and two CD&R portfolio businesses, apree health and Millennium Physician Group.

The investment is accounted for as an equity method investment.

Our additional contribution of the CMSI Assets to Mosaic Health was completed on January 1, 2025, for which we received an additional $ 300 of equity (approximately 5 % ownership) in Mosaic Health.

In connection with our equity method investment in Mosaic Health, we entered into a financing agreement to provide a term loan of $ 200 and a revolving credit facility of up to $ 500 to Mosaic Health.

Net amounts receivable under these arrangements were $ 188 at both September 30, 2025 and December 31, 2024, which are included under the caption “Other invested assets” in our consolidated balance sheets as of September 30, 2025 and December 31, 2024.

During the nine months ended September 30, 2025 and 2024, we recognized $ 13 and $ 3 , respectively, in interest income from the financing arrangement with Mosaic Health.

In addition to the term loan and line of credit, we committed to providing $ 70 of funding with no additional equity interest in Mosaic Health to meet any shortfall in operating cash flow and regulatory capital requirements of the CMSI Assets through December 31, 2026, and to fund any remaining shortfalls as necessary for which we would receive additional equity interests in Mosaic Health.

No additional funding was provided as of September 30, 2025 or December 31, 2024.

In addition, during the three and nine months ended September 30, 2025, in the normal course of business, Mosaic provided care delivery and enablement services to Elevance Health subsidiaries amounting to $ 162 and $ 662 , respectively, reported in benefit expense.

In January 2023, we made an equity investment consisting of cash and a net put option in Liberty Dental, a joint venture with Welsh, Carson, Anderson & Stowe which engages in dental insurance and dental healthcare administration.

The investment is accounted for as an equity method investment.

In connection with our equity method investment in Liberty Dental, in December 2024 we entered into a commitment to provide funding in the form of mandatorily redeemable preferred equity shares in Liberty Dental of up to $ 250 , of which $ 157 and $ 87 was disbursed as of September 30, 2025 and December 31, 2024, respectively.

Mandatorily redeemable preferred equity in Liberty Dental of $ 127 and $ 87 is included in the caption “Other invested assets” in our consolidated balance sheets at September 30, 2025 and December 31, 2024, respectively.

Dividend income recognized from the financing arrangement during the nine months ended September 30, 2025 and the year ended December 31, 2024 was not material.

During the three and nine months ended September 30, 2025, in the normal course of business, Liberty Dental provided services to our Medicare Advantage members under a capitated arrangement amounting to $ 149 and $ 441 , respectively, reported in benefit expense.

See Note 5 “Investments” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K.

In connection with our equity method investment in Mosaic Health, we entered into a financing agreement to provide a term loan of $ 200 and a line of credit up to $ 500 to Mosaic Health.

Mosaic Health borrowed $ 100 on the line of credit in December 2025, which remained outstanding at March 31, 2026.

Net amounts receivable under these arrangements were $ 282 at both March 31, 2026 and December 31, 2025, which are included under the caption “Other invested assets” in our consolidated balance sheets as of March 31, 2026 and December 31, 2025.

Interest income recognized from the financing arrangement during the three months ended March 31, 2026 and 2025 was not material.

In addition to the term loan and line of credit, we committed to providing $ 70 of additional funding with no additional equity interest in Mosaic Health to meet any shortfall in operating cash flow and regulatory capital requirements of certain businesses that were contributed by us to Mosaic Health through December 31, 2026.

We also committed to fund any shortfalls above $ 70 in those businesses if necessary for which we would receive additional equity interests in Mosaic Health.

Additional funding of $ 34 was provided during the three months ended March 31, 2026.

No additional funding was provided as of December 31, 2025.

Related party transactions with Mosaic Health, which were reported in benefit expense, included care delivery and enablement services to Elevance Health subsidiaries amounting to $ 193 and $ 175 for the three months ended March 31, 2026 and 2025, respectively.

In connection with our equity method investment in Liberty Dental, in December 2024 we entered into a commitment to provide funding in the form of mandatorily redeemable preferred equity shares in Liberty Dental of up to $ 250 , of which $ 165 was disbursed as of both March 31, 2026 and December 31, 2025.

Mandatorily redeemable preferred equity in Liberty Dental of $ 145 and $ 137 is included in the caption “Other invested assets” in our consolidated balance sheets at March 31, 2026 and December 31, 2025, respectively.

Dividend income recognized from the financing arrangement during the three months ended March 31, 2026 and 2025 was not material.

During the three months ended March 31, 2026 and 2025, in the normal course of business, related party transactions with Liberty Dental included administrative services to our Medicare Advantage members under a capitated arrangement amounting to $ 133 and $ 146 , respectively, which amounts were included in “Benefit expense” in our consolidated statements of income.

Investment Gains (Losses)

Net investment gains (losses) for the three and nine months ended September 30, 2025 and 2024 are as follows:

Net investment gains (losses) for the three months ended March 31, 2026 and 2025 are as follows:

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

Net gains (losses):

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A primary objective in the management of our fixed maturity and equity portfolios is to maximize total return relative to underlying liabilities and respective liquidity needs.

In achieving this goal, assets may be sold to take advantage of market

conditions or other investment opportunities as well as tax considerations.

In achieving this goal, assets may be sold to take advantage of market conditions or other investment opportunities as well as tax considerations.

Sales will generally produce realized gains and losses.

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or (v) changes in expected cash flow.

During the three and nine months ended September 30, 2025, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 2,738 and $ 8,759 , respectively.

During the three and nine months ended September 30, 2024, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 3,870 and $ 12,284 , respectively.

Total proceeds from sales, maturities, calls or redemptions of fixed maturity securities were $ 2,942 and $ 3,338 for the three months ended March 31, 2026 and 2025, respectively.

Accrued Investment Income

At September 30, 2025 and December 31, 2024, accrued investment income totaled $ 280 and $ 287 , respectively.

At March 31, 2026 and December 31, 2025, accrued investment income totaled $ 299 and $ 295 , respectively.

We recognize accrued investment income under the caption “Other receivables” on our consolidated balance sheets.

Securities Lending Programs

The fair value of the cash and securities received as collateral for securities loaned at September 30, 2025 and December 31, 2024 was $ 2,881 and $ 2,305 , respectively.

The collateral received was 102 % of the market value of the loaned securities at each of September 30, 2025 and December 31, 2024.

The fair value of the cash and securities received as collateral for securities loaned at March 31, 2026 and December 31, 2025 was $ 3,004 and $ 2,691 , respectively.

The collateral received was 102 % of the market value of the loaned securities at each of March 31, 2026 and December 31, 2025.

We recognize the collateral as an asset under the caption “Other current assets” in our consolidated balance sheets, and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets.

At September 30, 2025 and December 31, 2024, the remaining contractual maturities of our securities lending transactions included overnight and continuous transactions of cash for $ 2,711 and $ 2,115 , respectively, United States Government securities for $ 170 and $ 176 , respectively, and residential mortgage-backed securities for $ 0 and $ 14 , respectively.

At March 31, 2026 and December 31, 2025, the remaining contractual maturities of our securities lending transactions included overnight and continuous transactions of cash for $ 2,199 and $ 2,136 , respectively, United States Government securities for $ 780 and $ 552 , respectively, and residential mortgage-backed securities for $ 25 and $ 3 , respectively.

Derivative Financial Instruments

We use derivative financial instruments to manage interest rate and foreign exchange risk and credit exposure.

We primarily invest in the following types of derivative financial instruments:

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We also enter into master netting agreements, which reduce credit risk by permitting net settlement of transactions.

We received collateral of $ 66 and posted collateral of $ 142 related to our derivative financial instruments at September 30, 2025 and December 31, 2024, respectively.

We posted collateral of $ 9 and received collateral of $ 34 related to our derivative financial instruments at March 31, 2026 and December 31, 2025, respectively.

We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floating rates.

The floating rates payable on all of our fair value hedges are benchmarked to the Secured Overnight Financing Rate (“SOFR”).

Any amounts recognized for changes in fair value of these derivatives are included in the captions “Other current assets,” “Other noncurrent assets,” “Other current liabilities” or “Other noncurrent liabilities” in our consolidated balance sheets, as applicable.

The unrecognized loss, net of tax, for all expired and terminated interest rate cash flow hedges included in the consolidated statements of comprehensive income within the change in net unrealized gains (losses) on cash flow hedges was $ 195 and $ 201 at September 30, 2025 and December 31, 2024, respectively.

During the three and nine months ended September 30, 2025 , we recognized net gains of $ 0 and net losses of $ 2 , respectively, on non-hedging derivatives.

During the three and nine months ended September 30, 2024 , we recognized net gains of $ 1 and $ 8 , respectively, on non-hedging derivatives.

These derivatives are recorded at fair value and are included in the captions “Other current assets,” “Other noncurrent assets,” “Other current liabilities” or “Other noncurrent liabilities” in our consolidated balance sheets, as applicable.

The unrecognized loss, net of tax, for all expired and terminated interest rate cash flow hedges included in “Accumulated other comprehensive loss” in our consolidated balance sheets was $ 190 and $ 192 as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026 , we recognized net gains of $ 1 on non-hedging derivatives.

During the three months ended March 31, 2025 , we recognized net losses of $ 2 on non-hedging derivatives.

In connection with our equity investment in Mosaic Health (see Note 4, “Investments”), we entered into a limited partnership and related agreements with the majority owners that provide for certain rights and obligations of each party, including certain put, call, and purchase price true-up options.

These options, if exercised, will result in our purchase of the units held by the majority owners as early as 2028 but no later than 2030 at a price based on certain multiples of revenue and earnings of Mosaic Health businesses, subject to various adjustments and qualifications.

We have calculated the fair value of the net put option, which is a Level III measurement (see Note 7, “Fair Value”), using a Monte Carlo simulation, which relies on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options.

At inception, we calculated the fair value of the net put option, which is a Level III measurement (see Note 6, “Fair Value”), using a Monte Carlo simulation, which relies on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options.

Significant changes in assumptions could result in significantly lower or higher fair value measurements.

The carrying value of the net put option of $ 1,330 , which is a non-cash item measured at fair value at the date of our initial investment, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of September 30, 2025.

We have elected to not mark the net put option to market, as it is an option on large blocks of equity securities, and the carrying value of the net put option will remain on the consolidated balance sheets until it is exercised or expires.

The carrying value of the net put option of $ 1,330 , which is a non-cash item originally measured at fair value, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of March 31, 2026.

In connection with our equity investment in Liberty Dental (see Note 4, “Investments”), we entered into an agreement with the majority owners that provides for certain rights and obligations of each party, including certain put and call options.

These options, if exercised, will result in our purchase of the units held by the majority owners as early as 2026 but no later than 2027 at a price based on certain multiples of earnings of Liberty Dental, subject to various adjustments and qualifications.

These options, if exercised, will result in our purchase of the units held by the majority owners as early as July 1, 2026 but no later than 2027 at a price based on certain multiples of earnings of Liberty Dental, subject to various adjustments and qualifications.

We have calculated the fair value of the net put option, which is a Level III measurement (see Note 6, “Fair Value”), based on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options.

Significant changes in assumptions could result in significantly lower or higher fair value measurements.

The carrying value of the net put option of $ 396 , which is a non-cash item measured at fair value at the date of our initial investment, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheet as of September 30, 2025.

The change in value was recognized through net losses on financial instruments in our consolidated statements of income.

On March 28, 2025, the terms of the put and call options were substantially amended.

The previous net put option liability of $ 85 at December 31, 2024 was extinguished and we recognized a new net put option liability at its estimated fair value on March 28, 2025 of $396, which is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of March 31, 2026.

For additional information relating to the fair value of our derivative assets and liabilities, see Note 6, “Fair Value,” included in this Quarterly Report on Form 10-Q.

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For a description of the methods and assumptions that are used to estimate and determine the fair value hierarchy classification for each class of financial instruments, see Note 7, “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K.

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024 is as follows:

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025 is as follows:

Level I Level II Level III Total

September 30, 2025

March 31, 2026

Cash equivalents $ 5,735 $ — $ — $ 5,735

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Total liabilities $ — $ ( 28 ) $ — $ ( 28 )

There were no individually material transfers into or out of Level III during the three and nine months ended September 30, 2025 or 2024.

There were no adjustments to quoted market prices obtained from the pricing services during the three and nine months ended September 30, 2025 or 2024.

There were no individually material transfers into or out of Level III during the three months ended March 31, 2026 or 2025.

There were no adjustments to quoted market prices obtained from the pricing services during the three months ended March 31, 2026 or 2025.

Certain assets and liabilities are measured at fair value on a nonrecurring basis;

that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances.

As disclosed in Note 3, “Business Acquisitions and Divestitures,” we completed our acquisition of Centers and CareBridge in December 2024.

The net assets acquired in our acquisitions of Centers and CareBridge and resulting goodwill and other intangible assets were recorded at fair value primarily using Level III inputs.

The majority of tangible assets acquired and liabilities assumed were recorded at their carrying values as of the acquisition date, as their carrying values approximated their fair values due to their short-term nature.

The fair values of goodwill and other intangible assets acquired in our acquisitions of Centers and CareBridge were valued based on the income approach.

The fair values of goodwill and other intangible assets acquired in certain business acquisitions during the years ended December 31, 2025 and 2024 were finalized based on a valuation performed using the income approach.

The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future.

We developed internal estimates for the expected cash flows and discount rate in the present value calculation.

As discussed in Note 6, “Derivative Financial Instruments”, in August 2024, we entered into certain put, call, and purchase price true-up options in connection with our investment in Mosaic Health.

The net put option estimated fair value was $ 1,400 and $ 1,330 at September 30, 2025 and December 31, 2024, respectively.

As discussed in Note 6, “Derivative Financial Instruments”, in March 2025, we amended certain put, and call options in connection with our investment in Liberty Dental.

The net put option estimated fair value was $ 444 and $ 543 at September 30, 2025 and December 31, 2024, respectively.

Other than the assets acquired and liabilities assumed in our acquisitions of Centers and CareBridge and the net put options on Mosaic Health and Liberty Dental, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2025 or 2024.

As discussed in more detail within Note 4, “Investments”, we entered into agreements that included certain put and call options associated with our minority interest ownership of Mosaic Health in 2024 and Liberty Dental in 2023 (as amended in 2025).

The resulting net put option liabilities were recorded at their fair values measured at the dates of acquisition using Level III inputs with an election not to mark the derivative to market, which is further discussed and disclosed in Note 5, “Derivative Financial Instruments”.

The net put option fair value for Mosaic Health was $ 2,699 and $ 2,717 at March 31, 2026 and December 31, 2025, respectively.

The net put option fair value for Liberty Dental was $ 341 and $ 327 at March 31, 2026 and December 31, 2025, respectively.

Other than the goodwill and intangible assets acquired and liabilities assumed in our business acquisitions and the net put options on Mosaic Health and Liberty Dental, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2026 or 2025.

In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in our consolidated balance sheets.

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See Note 7, “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K for details on the methods and assumptions used to estimate the fair value for each class of financial instruments that are recorded at their carrying value in our consolidated balance sheets.

A summary of the estimated fair values by level for each class of financial instruments that is recorded at its carrying value on our consolidated balance sheets at September 30, 2025 and December 31, 2024 is as follows:

A summary of the estimated fair values by level for each class of financial instruments that is recorded at its carrying value on our consolidated balance sheets at March 31, 2026 and December 31, 2025 is as follows:

Value Estimated Fair Value

Level I Level II Level III Total

September 30, 2025

March 31, 2026

Other invested assets $ 787 $ — $ — $ 765 $ 765

Short-term borrowings 180 — 180 — 180

Commercial paper

724 — 724 — 724

Notes 31,118 — 28,844 — 28,844

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Options 1,726 — — 3,044 3,044

During the three months ended September 30, 2025 and 2024, we recognized income tax expense of $ 219 an d $ 365 , respectively, which represent effective income tax rates of 15.6 % and 26.6 %, respectively.

During the nine months ended September 30, 2025 and 2024, we recognized income tax expense of $ 1,380 an d 1,740 , respectively, which represent effective income tax rates of 21.2 % and 23.8 %, respectively.

The decrease in our effective income tax rate compared to the three months ended September 30, 2024 was primarily due to the impact of certain investment credits and the non-recurrence of a prior year uncertain tax position recognized during the three months ended September 30, 2024.

The decrease in our effective income tax rate compared to the nine months ended September 30, 2024 was primarily due to the impact of certain investment credits.

We recognized income taxes receivable of $ 294 and $ 213 as an asset under the caption “Other current assets” and income taxes payable of $ 141 and $ 75 as a liability under the caption “Other current liabilities” in our consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively.

During the three months ended March 31, 2026 and 2025, we recognized income tax expense of $ 544 an d $ 613 , respectively, which represent effective income tax rates of 23.6 % and 21.9 %, respectively.

The increase in our effective income tax rate compared to the three months ended March 31, 2025 was primarily due to a current year increase in our reserves for uncertain tax positions and prior year favorable resolution of uncertain tax positions.

Income taxes netted to a payable of $ 208 at March 31, 2026 and a receivable of $ 436 at December 31, 2025.

We recognized income taxes receivable of $ 776 and $ 587 as an asset under the caption “Other current assets” and income taxes payable of $ 984 and $ 151 as a liability under the caption “Other current liabilities” in our consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.

Medical Claims Payable

A reconciliation of the beginning and ending balances for medical claims payable for the nine months ended September 30, 2025 and 2024 is as follows:

A reconciliation of the beginning and ending balances for medical claims payable for the three months ended March 31, 2026 and 2025 is as follows:

Gross medical claims payable, beginning of period $ 16,829 $ 15,580

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Gross medical claims payable, end of period $ 18,119 $ 16,529

At September 30, 2025, the total of net incurred but not reported liabilities plus expected development on reported claims was $ 15,223 , $ 1,258 and $ 343 for the claim years 2025, 2024, and 2023 and prior, respectively.

The favorable development recognized in the nine months ended September 30, 2025 resulted from trend factors in late 2024 developing more favorably than originally expected as well as a smaller contribution from faster than expected development of completion factors from the latter part of 2024.

The favorable development recognized in the nine months ended September 30, 2024 resulted from faster than expected development of completion factors during the latter part of 2023, as well as trend factors in late 2023 developing more favorably than originally expected.

The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the nine months ended September 30, 2025 and 2024 is as follows:

At March 31, 2026, the total of net incurred but not reported liabilities plus expected development on reported claims was $ 12,667 , $ 4,653 and $ 754 for the claim years 2026, 2025, and 2024 and prior, respectively.

The favorable development recognized in the three months ended March 31, 2026 resulted from both favorable trend development at the end of 2025 and favorable completion factor development from 2025.

The favorable development recognized in the three months ended March 31, 2025 resulted from faster than expected development of completion factors from the latter part of 2024 as well as smaller but significant contribution from trend factors in late 2024 developing more favorably than originally expected.

The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the three months ended March 31, 2026 and 2025 is as follows:

Net incurred medical claims with medical claims payable

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Net incurred medical claims under certain performance-based risk arrangements that include gain or loss sharing components do not require a medical claim payable liability.

The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheets, as of September 30, 2025 is as follows:

Net medical claims payable, end of period $ 18,074

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Gross medical claims payable, end of period $ 18,425

We generally issue senior unsecured notes for long-term borrowing purposes.

At September 30, 2025 and December 31, 2024, we had $ 31,897 and $ 30,843 , respectively, outstanding under these notes.

On September 15, 2025, we issued $ 750 aggregate principal amount of 4.000 % Notes due 2028 (the “2028 Notes”), $ 750 aggregate principal amount of 4.600 % Notes due 2032 (the “2032 Notes”), $ 1,000 aggregate principal amount of 5.000 % Notes due 2036 (the “2036 Notes”), and $ 500 aggregate principal amount of 5.700 % Notes due 2055 (the “2055 Notes”, and, together with the 2028 Notes, the 2032 Notes and the 2036 Notes, the “Notes”) under our shelf registration statement.

Interest on the 2028 Notes, the 2032 Notes, and the 2055 Notes are payable semi-annually in arrears on March 15 and September 15 of each year, commencing March 15, 2026.

Interest on the 2036 Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing January 15, 2026.

We used the net proceeds from the issuance of the Notes to redeem all of the $ 400 aggregate principal amount of our 5.350 % senior notes due 2025 and the $ 500 aggregate principal amount of our 4.900 % senior notes due 2026.

We intend to use the remainder of the net proceeds for working capital and general corporate purposes, including, but not limited to, the funding of acquisitions, repayment of other short-term and long-term debt and the repurchase of our common stock pursuant to our share repurchase program.

On January 15, 2025, we repaid, at maturity, the $ 1,250 outstanding balance of our 2.375 % unsecured notes.

We have an unsecured surplus note with an outstanding principal balance of $ 25 at both September 30, 2025 and December 31, 2024.

Long-term debt

The carrying value of our long-term debt at March 31, 2026 and December 31, 2025 consists of the following:

March 31, 2026 December 31, 2025

Senior unsecured notes $ 31,093 $ 31,871

Unsecured surplus note 25 25

Total long-term debt 31,118 31,896

Current portion of long-term debt ( 350 ) ( 1,099 )

Long-term debt, less current portion $ 30,768 $ 30,797

On March 15, 2026, we repaid, at maturity, the $ 750 outstanding balance of our 1.500 % senior unsecured notes.

During the twelve months ended December 31, 2025, the Company repaid at maturity $ 1,250 of its 2.375 % senior unsecured notes and redeemed $ 400 of its 5.350 % senior unsecured notes and $ 500 of its 4.900 % senior unsecured notes.

Short-term borrowings

We have a senior revolving credit facility (the “ 5 -Year Facility”) with a group of lenders for general corporate purposes.

On September 5, 2025, we amended and restated the credit agreement for the 5 -Year Facility to, among other things, extend the maturity date of the 5 -Year Facility from April 2027 to September 2030 and increase the amount of credit available under the 5 -Year Facility from $ 4,000 to $ 5,000 .

Our ability to borrow under the 5 -Year Facility is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60 %, subject to increase in certain circumstances set forth in the amended and restated credit agreement for the 5 -Year Facility.

As of September 30, 2025, our debt-to-capital ratio, as defined and calculated under the 5 -Year Facility, was 42.1 %.

We do not believe the restrictions contained in our 5 -Year Facility covenants materially affect our financial or operating flexibility.

As of September 30, 2025, we were in compliance with all of our debt covenants under the 5 -Year Facility.

There were no amounts outstanding under the 5 -Year Facility at any time during the nine months ended September 30, 2025 or during the year ended December 31, 2024.

We have an authorized commercial paper program of up to $ 4,000 , the proceeds of which may be used for general corporate purposes.

We had no amounts outstanding under this program at either September 30, 2025 or December 31, 2024.

We are a member, through certain subsidiaries, of the Federal Home Loan Bank of Indianapolis, the Federal Home Loan Bank of Cincinnati, the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of New York (collectively, the “FHLBs”).

As a member, we have the ability to obtain short-term cash advances, subject to certain minimum collateral requirements.

We had $ 180 and $ 365 of outstanding short-term borrowings from the FHLBs at September 30, 2025 and December 31, 2024, respectively.

All debt is a direct obligation of Elevance Health, Inc., except for the unsecured surplus note and the FHLBs borrowings.

The 5 -Year Facility provides credit of $ 5,000 and matures in September 2030.

In addition, we have an authorized commercial

paper program of up to $ 5,000 , the proceeds of which may be used for general corporate purposes.

The following table summarizes our outstanding short-term borrowings and our advances from the Federal Home Loan Bank of Indianapolis, the Federal Home Loan Bank of Cincinnati, the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of New York (collectively, the “FHLBs”), as of March 31, 2026 and December 31, 2025.

Facility March 31, 2026 December 31, 2025

Commercial paper program $ 724 $ —

FHLB advances $ — $ 150

All debt is a direct obligation of Elevance Health, Inc., except for the unsecured surplus note and the FHLB advances, which are obligations of certain subsidiaries.

We were in compliance with our debt covenants as of March 31, 2026.

For more information on our short-term borrowings, debt covenants and long-term debt, see Note 13, “Debt,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K.

Commitments and Contingencies

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Blue Cross Blue Shield Antitrust Litigation

We are a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees (the “Blue plans”) across the country.

Cases filed in twenty-eight states were consolidated into a single, multi-district proceeding captioned In re Blue Cross Blue Shield Antitrust Litigation that is pending in the U.S.

We have been a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees (the “Blue plans”) across the country.

These cases were consolidated into a single, multi-district proceeding captioned In re Blue Cross Blue Shield Antitrust Litigation (the “BCBSA Litigation”) that is pending in the U.S.

District Court for the Northern District of Alabama (the “Court”).

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The cases were brought by two putative nationwide classes of plaintiffs, health plan subscribers and providers.

The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”), which received final approval by the Court in September 2022.

The Subscriber Settlement Agreement and the defendants' payment and non-monetary obligations under the Subscriber Settlement Agreement became effective in June 2024, with the request for second Blue plan bid provisions effective in September 2024.

A number of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed.

The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”), which received final approval from the Court in September 2022.

The ultimate amount paid by the Company under the Subscriber Settlement Agreement was $ 604 , which was accrued in 2020.

The Subscriber Settlement Agreement and the defendants' payment and non-monetary obligations under the Subscriber Settlement Agreement became

effective in June 2024, with the request for second Blue plan bid provisions effective in September 2024.

The funds held in escrow will be distributed to members of the subscriber class in accordance with the Subscriber Settlement Agreement.

A number of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed and remain pending.

Those actions are:

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2:22-cv-01256-SGC (N.D.

Hoover, et al.

Ala.) and Hoover, et al.

Blue Cross Blue Shield Association, et al.

, No 1:21-cv-23448 (S.D.

and VHS Liquidating Trust v.

Blue Cross of California, et al.

RG21106600 (Cal.

Super.) (“VHS”) .

1:21-cv-23448 (S.D.

Beginning in 2021, Prime Healthcare Services, Inc., Prime Healthcare Foundation, Inc., Prime Healthcare Management, Inc.and VHS Liquidating Trust (“VHS”), filed an antitrust action, VHS Liquidating Trust v.

Blue Cross of California, et al., No.

RG21106600 (Cal Super.) against BCBSA and all Blue plans in California Superior Court bringing similar claims as the BCBSA Litigation.

In February 2023, the Court denied the defendants’ motion to dismiss based on a statute of limitations defense in Alaska Air and Jet Blue .

In September 2023, the California court presiding over the VHS case upheld its prior order granting in part defendants’ motion to strike based on the statute of limitations.

On February 14, 2025, the VHS plaintiffs amended their complaint to add an additional plaintiff, Children’s Hospital of Los Angeles.

In February 2025, the VHS plaintiffs amended their complaint to add an additional plaintiff, Children’s Hospital of Los Angeles.

Trial for this case is scheduled for March 2027.

We intend to continue to vigorously defend these follow-on cases, which we believe are without merit;

however, their ultimate outcome cannot be presently determined.

In the third quarter of 2024, the BCBSA, along with the individually named Blue plans, approved a settlement agreement and release (the “Provider Settlement Agreement”) with the provider plaintiffs, and in October 2024 the provider plaintiffs filed a motion for preliminary approval with the Court.

The Court granted preliminary approval of the provider settlement on December 4, 2024 .

A Final Fairness Hearing was held in July 2025, and a Final Order of Approval was issued in August 2025.

As a result of the Final Order of Approval, the defendants were required to make a monetary settlement payment, our portion of which was $ 666 and was paid on September 19, 2025.

Ce rtain non-monetary terms including (i) expansion of certain opportunities to contract with providers in contiguous service areas, (ii) certain prompt pay commitments, and (iii) various technological enhancements to the BlueCard program are now being implemented on a timeline set forth in the Provider Settlement Agreement.

We recognized our payment obligation under the Provider Settlement Agreement of $ 666 in September 2024 as operating expense in the Corporate & Other segment (see Note 15, “Segment Information”).

A number of follow-on cases involving entities that opted out of the putative Provider Settlement Agreement have been filed.

As a result of the Final Order of Approval, the defendants were required to make a monetary settlement payment and ce rtain non-monetary terms including (i) expansion of certain opportunities to contract with providers in contiguous service areas, (ii) certain prompt pay commitments, and (iii) various technological enhancements to the BlueCard program are now being implemented on a timeline set forth in the Provider Settlement Agreement.

The effective date of the Provider Settlement was September 19, 2025.

We recognized our payment obligation under the Provider Settlement Agreement of $ 666 in September 2024 as operating expense in the Corporate & Other segment.

A number of follow-on cases involving entities that opted out of the Provider Settlement Agreement have been filed and have been centralized in the BCBSA Litigation multi-district proceeding.

We intend to continue to vigorously defend these provider follow-on cases, which we believe are without merit;

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In November 2022, we filed an answer.

In March 2023, discovery commenced, and an initial case management conference was held in April 2023.

Fact discovery is ongoing with a current deadline of December 9, 2025.

The final expert discovery deadline is currently June 18, 2026.

On October 1, 2025, the Chief Judge for the District Court issued a temporary Order of Stay of all civil cases (other than those for civil forfeiture) brought by the United States Attorney's Office for the Southern District of New York.

In March 2023, discovery commenced.

Fact and expert discovery are ongoing with current completion deadlines of June 30, 2026 and March 8, 2027, respectively.

We intend to continue to vigorously defend this suit, which we believe is without merit;

however, the ultimate outcome cannot be presently determined.

As previously communicated, on February 27, 2026, the Company was notified by the Centers for Medicare & Medicaid Services (“CMS”) of its intent to impose intermediate sanctions on the Company based on alleged noncompliance by the Company with certain Medicare Advantage risk adjustment data submission requirements related to diagnosis codes previously disclosed to CMS.

On March 13, 2026, CMS notified the Company that it was granting the Company’s request for an extension of the effective date of the sanctions from March 31, 2026 to May 30, 2026 and also removed certain of the Company’s MA-PD plans from the threatened sanctions and granted a waiver for various Employee Group Waiver Plans.

CMS subsequently modified the compliance timeline.

The Company now has until July 31, 2026 to complete a series of steps required by the agency to avoid sanctions.

While the Company is working with CMS to complete these steps to reach a resolution that avoids the imposition of sanctions or other remedies, there can be no assurance that such a resolution can be achieved.

The Company is also currently contesting CMS’ action through an administrative process.

In connection with the notice and the Company’s ongoing assessment of diagnosis codes, for dates of service 2015 through April 2, 2023, previously disclosed to CMS, the Company recorded an accrual of approximately $ 935 representing its current best estimate of the identified potential exposure for the resubmission of certain Medicare Advantage risk adjustment data pursuant to applicable loss contingency accounting guidance.

This accrual was recorded in “Other current liabilities” on the consolidated balance sheet as of March 31, 2026 and “Operating expense” on the consolidated statement of income for the three months ended March 31, 2026.

The Company believes that it is reasonably possible that the loss contingency liability for the risk adjustment data previously disclosed to CMS could differ from the amount accrued.

Management currently estimates that the aggregate amount of such liability could range from approximately $ 585 less than the amount currently accrued to up to $ 565 in excess of the amount currently accrued.

Other Contingencies

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CarelonRx delegates certain core pharmacy services to CaremarkPCS Health, L.L.C.

(“CVS”), which is a subsidiary of CVS Health Corporation, pursuant to an agreement (the “CVS Agreement”), with the current contractual term extending through December 31, 2027.

(“CVS”), which is a subsidiary of CVS Health Corporation, pursuant to an agreement (“CVS Agreement”), with the current contractual term extending through December 31, 2027.

We can elect to have CVS continue to provide services to us for a three-year extension period on the same terms and conditions as in the current CVS Agreement in the event of a termination or non-renewal by either party.

We have financial guarantees related to standby letters of credit and surety bonds related to certain contractual commitments, which totaled $ 834 as of September 30, 2025.

We have financial guarantees related to standby letters of credit and surety bonds related to certain contractual commitments, which totaled $ 781 as of March 31, 2026.

We do not believe such obligations will materially affect our financial position, results of operations, or cash flows.

We have unfunded loan commitments to certain equity investees of $ 501 at September 30, 2025.

We have unfunded loan commitments to certain equity investees of $ 401 at March 31, 2026.

We do not believe such obligations will materially affect our financial position, results of operations, or cash flows.

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Concentrations of credit risk with respect to premium receivables are limited due to the large number of employer groups that constitute our customer base in the states in which we conduct business.

As of September 30, 2025, there were no significant concentrations of financial instruments in a single investee, industry or geographic location.

As of March 31, 2026, there were no significant concentrations of financial instruments in a single investee, industry or geographic location.

Capital Stock

Stock Incentive Plan s

A summary of stock option activity for the nine months ended September 30, 2025 is as follows:

A summary of stock option activity for the three months ended March 31, 2026 is as follows:

Shares Weighted-

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Forfeited or expired ( 0.1 ) 408.64

Outstanding at September 30, 2025 3.2 373.18 5.86 $ 77

Exercisable at September 30, 2025 2.1 342.73 4.51 $ 77

A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the nine months ended September 30, 2025 is as follows:

Outstanding at March 31, 2026 3.8 $ 359.64 6.50 $ 33

Exercisable at March 31, 2026 2.4 $ 369.90 4.87 $ 33

A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the three months ended March 31, 2026 is as follows:

and Units Weighted-

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Forfeited ( 0.1 ) 453.74

Nonvested at September 30, 2025 1.1 438.24

During the nine months ended September 30, 2025, we granted approximately 0.2 restricted stock units that are contingent upon us achieving earnings targets over the three-year period from 2025 to 2027.

Nonvested at March 31, 2026 1.6 $ 355.27

During the three months ended March 31, 2026, we granted approximately 0.3 restricted stock units that are contingent upon us achieving an earnings target for 2026 and certain qualitative plan metrics over the three-year period from 2026 to 2028.

These grants have been included in the activity shown above but will be subject to adjustment at the end of 2028 based on results during the three-year period.

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For a more detailed discussion of our stock incentive plan fair value methodology, see Note 15, “Capital Stock,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K.

The following weighted-average assumptions were used to estimate the fair values of options granted during the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30

The following weighted-average assumptions were used to estimate the fair values of options granted during the three months ended March 31, 2026 and 2025:

Three Months Ended March 31

Risk-free interest rate 3.97 % 4.29 %

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Weighted-average expected life (years) 4.55 4.45

The following weighted-average fair values per option or share were determined for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30

The following weighted-average fair values per option or share were determined for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31

Options granted during the period $ 75.79 $ 107.31

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The declaration and payment of any dividends or repurchases of our common stock or debt is at the discretion of our Board of Directors and depends upon our financial condition, results of operations, future liquidity needs, regulatory and capital requirements and other factors deemed relevant by our Board of Directors.

A summary of our cash dividend activity for the nine months ended September 30, 2025 and 2024 is as follows:

A summary of our cash dividend activity for the three months ended March 31, 2026 and 2025 is as follows:

Declaration Date Record Date Payment Date Cash

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

January 27, 2026 March 10, 2026 March 25, 2026 $ 1.72 $ 376

April 16, 2025 June 10, 2025 June 25, 2025 $ 1.71 $ 385

July 16, 2025 September 10, 2025 September 25, 2025 $ 1.71 $ 381

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

January 22, 2025 March 10, 2025 March 25, 2025 $ 1.71 $ 386

April 16, 2024 June 10, 2024 June 25, 2024 $ 1.63 $ 378

July 16, 2024 September 10, 2024 September 25, 2024 $ 1.63 $ 378

On October 15, 2025, our Audit Committee declared a fourth quarter 2025 dividend to shareholders of $ 1.71 per share, payable on December 19, 2025 to shareholders of record at the close of business on December 5, 2025.

On April 21, 2026, our Audit Committee declared a second quarter 2026 dividend to shareholders of $ 1.72 per share, payable on June 25, 2026 to shareholders of record at the close of business on June 10, 2026.

Under our Board of Directors’ authorization, we maintain a common stock repurchase program.

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The excess cost of the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings.

A summary of common stock repurchases for the nine months ended September 30, 2025 and 2024 is as follows:

Nine Months Ended September 30

A summary of common stock repurchases for the three months ended March 31, 2026 and 2025 is as follows:

Three Months Ended March 31

Shares repurchased 3.7 2.2

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For additional information regarding the use of capital for debt security repurchases, see Note 9, “Debt,” included in this Quarterly Report on Form 10-Q and Note 13, “Debt,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K.

Accumulated Other Comprehensive (Loss) Income

A reconciliation of the components of accumulated other comprehensive (loss) income at September 30, 2025 and 2024 is as follows:

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

Net unrealized investment (losses) gains:

Beginning of period balance $ ( 142 ) $ ( 714 ) $ ( 523 ) $ ( 632 )

Other comprehensive income before reclassifications, net of tax expense of ($ 63 ), ($ 263 ), ($ 156 ), and ($ 189 ), respectively

211 841 514 595

Amounts reclassified from accumulated other comprehensive income, net of tax expense of ($ 3 ), ($ 17 ), ($ 28 ) and ($ 65 ), respectively

Other comprehensive income

220 887 603 805

Other comprehensive income attributable to noncontrolling interests, net of tax expense of $ 0 , $ 0 , $ 0 , and $ 0 , respectively

( 2 ) — ( 4 ) —

End of period balance 76 173 76 173

Non-credit components of impairments on investments:

Beginning of period balance ( 4 ) ( 3 ) ( 2 ) ( 3 )

Other comprehensive income (loss), net of tax benefit of $ 0 , $ 0 , $ 1 , and $ 0 , respectively

End of period balance ( 3 ) ( 3 ) ( 3 ) ( 3 )

Net cash flow hedges:

Beginning of period balance ( 199 ) ( 205 ) ( 207 ) ( 211 )

Other comprehensive income (loss), net of tax benefit (expense) of $ 1 , $ 0 , ($ 3 ), and ($ 2 ), respectively

End of period balance ( 202 ) ( 203 ) ( 202 ) ( 203 )

Pension and other postretirement benefits:

Beginning of period balance ( 402 ) ( 451 ) ( 399 ) ( 459 )

Other comprehensive income, net of tax expense of ($ 1 ), ($ 1 ), ($ 10 ), and ($ 3 ), respectively

End of period balance ( 398 ) ( 448 ) ( 398 ) ( 448 )

Future policy benefits:

Beginning of period balance 9 9 8 10

Other comprehensive loss, net of tax benefit of $ 0 , $ 0 , $ 0 , and $ 0 , respectively

( 2 ) ( 1 ) ( 1 ) ( 2 )

End of period balance 7 8 7 8

Foreign currency translation adjustments:

Beginning of period balance ( 22 ) ( 23 ) ( 24 ) ( 18 )

Other comprehensive (loss) income, net of tax expense of $ 0 , $ 0 , $ 0 , and $ 0 , respectively

End of period balance ( 23 ) ( 16 ) ( 23 ) ( 16 )

Total beginning of period accumulated other comprehensive loss ( 760 ) ( 1,387 ) ( 1,147 ) ( 1,313 )

Total other comprehensive income, net of tax expense of ($ 66 ), ($ 281 ), ($ 196 ), and ($ 259 ), respectively

219 898 608 824

Total other comprehensive income attributable to noncontrolling interests, net of tax expense of $ 0 , $ 0 , $ 0 , and $ 0 , respectively

( 2 ) — ( 4 ) —

Total end of period accumulated other comprehensive loss $ ( 543 ) $ ( 489 ) $ ( 543 ) $ ( 489 )

Shareholders' Earnings per Share

The denominator for basic and diluted shareholders' earnings per share for the three and nine months ended September 30, 2025 and 2024 is as follows:

The denominator for basic and diluted shareholders' earnings per share for the three months ended March 31, 2026 and 2025 is as follows:

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

Denominator for basic shareholders' earnings per share – weighted-average shares

223.3 231.9 225.0 232.3

Effect of dilutive securities – employee stock options, non-vested restricted stock awards and convertible debentures

0.4 1.2 0.6 1.3

Denominator for diluted shareholders' earnings per share

223.7 233.1 225.6 233.6

During the three months ended September 30, 2025 and 2024, weighted-average shares related to certain stock options of 2.2 and 0.5 , respectively, were excluded from the denominator for diluted shareholders' earnings per share because the stock options were anti-dilutive.

During the nine months ended September 30, 2025 and 2024, weighted-average shares related to certain stock options of 1.9 and 0.5 , respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive.

We have issued approximately 0.6 cumulative restricted stock units under our stock incentive plans, of which vesting is contingent upon us meeting specified annual earnings targets.

During the three months ended March 31, 2026 and 2025, weighted-average shares related to certain stock options of 1.8 and 1.5 , respectively, were excluded from the denominator for diluted shareholders' earnings per share because the stock options were anti-dilutive.

We have issued approximately 0.8 cumulative restricted stock units under our stock incentive plans, of which vesting is contingent upon us meeting specified earnings and qualitative plan performance targets.

Contingent restricted stock units are excluded from the denominator for diluted shareholders’ earnings per share and are included only if and when the contingency is met.

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Our care delivery services primarily target serving chronic and complex populations by providing personalized care in the home and virtually.

As a part of Carelon Health, we completed our acquisition of CareBridge at the end of 2024, which provides virtual care to complex Medicaid and Medicare patients and supports plans in managing home and community-based services.

Our Corporate & Other segment includes our businesses that do not individually meet the quantitative threshold for an operating segment, as well as corporate expenses not allocated to our other reportable segments.

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Operating gain is calculated as total operating revenue less benefit expense, cost of products sold and operating expense.

Affiliated revenues represent revenues or costs for services provided to our subsidiaries by CarelonRx and Carelon Services, in addition to certain administrative and other services provided by our international businesses, which are recorded at cost or management’s estimate of fair market value.

Certain administrative costs related to affiliate services are charged to the operating segment receiving the benefits and the amounts may change over time.

These affiliated revenues are eliminated in our consolidated financial statements.

For segment reporting, we present certain Carelon Services capitation risk arrangements on a gross basis;

therefore, eliminations also include adjustments for capitated risk arrangements that are recognized on a net basis under GAAP.

Affiliated operating revenues represent revenues or costs for services provided to our subsidiaries by CarelonRx and Carelon Services, in addition to certain administrative and other services provided by our international businesses, which are recorded at cost or management’s estimate of fair market value.

These affiliated operating revenues are eliminated in our consolidated financial statements.

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies in Note 2, “Basis of Presentation and Significant Accounting Policies,” except that all capitation risk arrangements are reported on a gross basis with an adjustment included in eliminations for capitated risk arrangements that are presented on a net basis under GAAP.

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The CODM uses operating gain or loss, developed during the annual budget process, and updated during the periodic forecasting process, as a basis to assess performance and allocate operating and capital resources to each segment.

Financial data by reportable segment for the three and nine months ended September 30, 2025 and 2024 is as follows:

Benefits CarelonRx Carelon

Services Total Corporate

& Other Eliminations Total

Three Months Ended September 30, 2025

Premiums $ 40,304 $ — $ 1,762 $ 1,762 $ — $ ( 275 ) $ 41,791

Product revenue — 6,159 — $ 6,159 — — 6,159

Service fees 1,942 4 191 195 — — 2,137

Operating revenue - unaffiliated 42,246 6,163 1,953 8,116 — ( 275 ) 50,087

Operating revenue - affiliated — 4,834 5,371 10,205 149 ( 10,354 ) —

Operating revenue - total $ 42,246 $ 10,997 $ 7,324 $ 18,321 $ 149 $ ( 10,629 ) $ 50,087

Benefit expense

$ 36,845 $ — $ 6,349 $ 6,349 $ 4 $ ( 5,058 ) $ 38,140

Cost of products sold

— 10,209 — $ 10,209 — ( 4,829 ) 5,380

Operating expense

4,800 232 756 988 226 ( 742 ) 5,272

Operating gain (loss) $ 601 $ 556 $ 219 $ 775 $ ( 81 ) $ — $ 1,295

Three Months Ended September 30, 2024

Premiums $ 36,448 $ — $ 680 $ 680 $ — $ ( 319 ) $ 36,809

Product revenue — 5,887 — 5,887 — — 5,887

Service fees 1,830 2 201 203 ( 10 ) — 2,023

Operating revenue - unaffiliated 38,278 5,889 881 6,770 ( 10 ) ( 319 ) 44,719

Operating revenue - affiliated — 3,254 3,757 7,011 84 ( 7,095 ) —

Operating revenue - total $ 38,278 $ 9,143 $ 4,638 $ 13,781 $ 74 $ ( 7,414 ) $ 44,719

Benefit expense

$ 32,724 $ — $ 3,767 $ 3,767 $ 5 $ ( 3,547 ) $ 32,949

Cost of products sold

— 8,336 — 8,336 — ( 3,243 ) 5,093

Operating expense

3,950 188 687 875 1,068 ( 624 ) 5,269

Operating gain (loss) $ 1,604 $ 619 $ 184 $ 803 $ ( 999 ) $ — $ 1,408

Financial data by reportable segment for the three months ended March 31, 2026 and 2025 is as follows:

Benefits CarelonRx Carelon

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& Other Eliminations Total

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Premiums $ 40,452 $ — $ 779 $ 779 $ — $ ( 207 ) $ 41,024

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Operating gain (loss) $ 2,157 $ 582 $ 470 $ 1,052 $ ( 1,123 ) $ — $ 2,086

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Premiums $ 39,588 $ — $ 1,500 $ 1,500 $ — $ ( 201 ) $ 40,887

11 unchanged sentences

Operating gain (loss) $ 2,217 $ 602 $ 491 $ 1,093 $ ( 140 ) $ — $ 3,170

A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and nine months ended September 30, 2025 and 2024 is as follows:

A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three months ended March 31, 2026 and 2025 is as follows:

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

Reportable segments’ operating revenue $ 49,494 $ 48,765

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Net losses on financial instruments ( 78 ) ( 464 )

Gain (loss) on sale of business

— ( 39 ) — 201

Total revenues $ 50,181 $ 48,891

A reconciliation of reportable segments' operating gain to income before income tax expense included in our consolidated statements of income for the three and nine months ended September 30, 2025 and 2024 is as follows:

A reconciliation of reportable segments' operating gain to income before income tax expense included in our consolidated statements of income for the three months ended March 31, 2026 and 2025 is as follows:

Three Months Ended

September 30 Nine Months Ended

2025 2024 2025 2024

Income before income tax expense $ 2,304 $ 2,797

1 unchanged sentence

Net losses on financial instruments 78 464

Gain (loss) on sale of business

— 39 — ( 201 )

Interest expense 357 344

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements