What changed in this filing

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Item 1. Financial Statements

2026-07-15 compared with 2026-04-22 · 208 added, 145 removed, 772 unchanged (31% of the section changed)

57 unchanged sentences

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

(In millions, except per share data)

13 unchanged sentences

Income before income tax expense

1,937 2,292 4,241 5,089

Income tax expense 483 548 1,027 1,161

1 unchanged sentence

Net loss (gain) attributable to noncontrolling interests

9 ( 1 ) 13 ( 2 )

Shareholders’ net income $ 1,463 $ 1,743 $ 3,227 $ 3,926

7 unchanged sentences

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

(In millions)

22 unchanged sentences

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended

Six Months Ended

(In millions)

17 unchanged sentences

Income taxes 488 603

Other, net ( 3 ) —

Net cash provided by operating activities 6,245 3,071

7 unchanged sentences

Other, net ( 11 ) ( 38 )

Net cash provided by (used in) investing activities

( 1,642 ) 103

Net cash used in investing activities ( 1,483 ) ( 584 )

Financing activities

27 unchanged sentences

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

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

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

Other comprehensive income (loss) — — — — ( 275 ) 3 ( 18 ) — ( 290 )

— — — — ( 275 ) 3 ( 18 ) — ( 290 )

Repurchase and retirement of common stock, including excise tax ( 3.6 ) — ( 151 ) ( 983 ) — — — — ( 1,134 )

2 unchanged sentences

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

Net income — — — 1,463 $ — — — ( 9 ) $ 1,454

Other comprehensive income — — — — 25 2 3 — 30

Noncontrolling interests adjustment — — — — — — — 8 8

Repurchase and retirement of common stock, including excise tax ( 0.8 ) — ( 28 ) ( 208 ) — — — — ( 236 )

Dividends and dividend equivalents — — — ( 376 ) — — — — ( 376 )

Issuance of common stock under employee stock plans, net of related tax benefits 0.2 — 100 — — — — — 100

June 30, 2026 216.8 $ 2 $ 8,917 $ 36,675 $ ( 142 ) $ ( 327 ) $ ( 242 ) $ 139 $ 45,022

Elevance Health, Inc.

Consolidated Statements of Changes in Equity (continued)

Total Shareholders’ Equity

Common Stock Accumulated Other Comprehensive Loss

Noncontrolling

Interests Total

Capital Retained

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

(In millions) Number of

December 31, 2024

2 unchanged sentences

Other comprehensive income (loss) — — — — 234 ( 5 ) 7 1 237

— — — — 234 ( 5 ) 7 1 237

Noncontrolling interests adjustment — — — — — — — 4 4

5 unchanged sentences

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

— — — 1,743 — — — 1 1,744

Other comprehensive income — — — — 147 2 2 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 $ ( 142 ) $ ( 402 ) $ ( 216 ) $ 129 $ 43,851

See accompanying notes.

1 unchanged sentence

Notes to Consolidated Financial Statements

March 31, 2026

June 30, 2026

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

2 unchanged sentences

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 March 31, 2026.

We are one of the largest health insurers in the United States in terms of medical membership, serving approximately 44.9 million medical members through our affiliated health plans as of June 30, 2026.

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

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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.

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.

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 six months ended June 30, 2026 and 2025 have been recorded.

The results of operations for the three and six months ended June 30, 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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We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period.

The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income.

The net effect of these translation adjustments is included in “Other” in our consolidated statements of comprehensive income.

Reclassifications:

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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 contractual requirements.

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.

These amounts totaled $ 668 and $ 348 at June 30, 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.

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Our proportionate share of equity in net income (loss) for these LPs and unconsolidated investee companies is reported within “Net investment income” in our consolidated statements of income.

The carrying value of these investments are written down, or impaired, to fair value when a decline in value is considered to be other-than temporary.

The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than temporary.

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.

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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 $ 205 and $ 167 at March 31, 2026 and December 31, 2025, respectively.

Premium receivables are reported net of an allowance for doubtful accounts of $ 187 and $ 167 at June 30, 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.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 153 and $ 145 at June 30, 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 $ 1,618 and $ 1,509 at March 31, 2026 and December 31, 2025, respectively.

These receivables are reported net of an allowance for doubtful accounts of $ 1,737 and $ 1,509 at June 30, 2026 and December 31, 2025, respectively.

During the quarter ended June 30, 2025, we realized a $ 209 settlement with a value-based care provider, which allowed us to release $ 129 from the allowance for doubtful accounts.

Of the settlement amount, $ 154 pertained to services rendered in 2024.

Revenue Recognition:

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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 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);

CarelonRx determines whether it is the principal based on 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);

and its discretion over establishing the pricing for prescription drugs.

Overall, control over these activities indicate CarelonRx is primarily responsible for fulfilling the promise to provide pharmacy services.

Overall, control over these activities indicates CarelonRx is primarily responsible for fulfilling the promise to provide pharmacy services.

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 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 our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheets at June 30, 2026 or December 31, 2025.

For the three and six months ended June 30, 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.

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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.

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:

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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.

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

Entities may 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.

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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.

Actions to be taken under the Transformation Program were ongoing as of June 30, 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.

During the six months ended June 30, 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.

The ending liability balance related to the employee termination costs under the Transformation Program at June 30, 2026 was $ 114 , which included charges of $ 129 and payments of $ 15 made during the six months ended June 30, 2026.

Fixed Maturity Securities

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

A summary of current and long-term fixed maturity securities, available-for-sale, at June 30, 2026 and December 31, 2025 is as follows:

Losses Allowance

Losses Estimated

March 31, 2026

June 30, 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 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:

For fixed maturity securities in an unrealized loss position at June 30, 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

5 unchanged sentences

Fair Value Gross

March 31, 2026

June 30, 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 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.

Unrealized losses on our securities shown in the table above have not been recognized into income because, as of June 30, 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 $ 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.

Allowances for credit losses have been recorded in the amount of $ 55 and $ 21 at June 30, 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 June 30, 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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Equity Securities

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

March 31, 2026 December 31, 2025

A summary of current equity securities at June 30, 2026 and December 31, 2025 is as follows:

June 30, 2026 December 31, 2025

Equity securities:

4 unchanged sentences

Other Invested Assets

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

March 31, 2026 December 31, 2025

A summary of other invested assets at June 30, 2026 and December 31, 2025 is as follows:

June 30, 2026 December 31, 2025

Other invested assets:

Company-owned life insurance $ 3,043 $ 2,927

$ 2,986 $ 2,927

Equity method investments and joint ventures 3,112 3,136

Limited partnership investments 3,217 3,033

$ 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.

Other 1,758 1,743

Total $ 11,130 $ 10,839

At June 30, 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”).

1 unchanged sentence

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.

Mosaic Health borrowed $ 100 on the line of credit in December 2025, which remained outstanding at June 30, 2026.

Net amounts receivable under these arrangements were $ 282 at both June 30, 2026 and December 31, 2025, which are included under the caption “Other invested assets” in our consolidated balance sheets as of June 30, 2026 and December 31, 2025.

Interest income recognized from the financing arrangement during the three and six months ended June 30, 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.

Additional funding of $ 34 was provided during the six months ended June 30, 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.

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, in which none has been contributed.

Related party transactions with Mosaic Health included care delivery and enablement services provided in the normal course of business which amounts were included in “Benefit expense” in our consolidated statements of income amounting to $ 193 and $ 386 for the three and six months ended June 30, 2026, respectively, and $ 171 and $ 346 , respectively, for the three and six months ended June 30, 2025.

Mandatorily redeemable preferred equity in Liberty Dental of $ 162 and $ 137 is included in the caption “Other invested assets” in our consolidated balance sheets at June 30, 2026 and December 31, 2025, respectively.

Dividend income recognized from the financing arrangement during the three and six months ended June 30, 2026 and 2025 was not material.

During the three and six months ended June 30, 2026, 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 $ 123 and $ 256 , respectively, and $ 146 and $ 292 , respectively, for the three and six months ended June 30, 2025 which amounts were included in “Benefit expense” in our consolidated statements of income.

Investment Gains (Losses)

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

Net investment gains (losses) for the three and six months ended June 30, 2026 and 2025 are as follows:

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net gains (losses):

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or (v) changes in expected cash flow.

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.

During the three and six months ended June 30, 2026, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 2,854 and $ 5,796 , respectively.

During the three and six months ended June 30, 2025, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 2,682 and $ 6,021 , respectively.

Accrued Investment Income

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

At June 30, 2026 and December 31, 2025, accrued investment income totaled $ 322 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 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.

The fair value of the cash and securities received as collateral for securities loaned at June 30, 2026 and December 31, 2025 was $ 2,833 and $ 2,691 , respectively.

The collateral received was 102 % of the market value of the loaned securities at each of June 30, 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 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.

At June 30, 2026 and December 31, 2025, the remaining contractual maturities of our securities lending transactions included overnight and continuous transactions of cash for $ 2,171 and $ 2,136 , respectively, United States Government securities for $ 658 and $ 552 , respectively, and residential mortgage-backed securities for $ 4 and $ 3 , respectively.

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 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 posted collateral of $ 80 and received collateral of $ 34 related to our derivative financial instruments at June 30, 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.

1 unchanged sentence

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.

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 $ 187 and $ 192 as of June 30, 2026 and December 31, 2025, respectively.

During both the three and six months ended June 30, 2026, we recognized net losses of $ 20 on non-hedging derivatives included in “Net losses on financial instruments” in our consolidated income statements.

During the three and six months ended June 30, 2025, we recognized net gains of $ 0 and net losses of $ 2 , respectively, on non-hedging derivatives included in “Net losses on financial instruments” in our consolidated income statement.

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.

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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 originally measured at fair value, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of March 31, 2026.

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, expires, or the terms are substantially amended.

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 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.

These options, if exercised, will result in our purchase of the units held by the majority owners as early as the third quarter of 2026, but no later than fourth quarter of 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.

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.

The carrying value of the net put option of $ 396 , 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 June 30, 2026.

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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 March 31, 2026 and December 31, 2025 is as follows:

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 is as follows:

Level I Level II Level III Total

March 31, 2026

June 30, 2026

Cash equivalents $ 5,305 $ — $ — $ 5,305

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

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.

There were no individually material transfers into or out of Level III during the three and six months ended June 30, 2026 or 2025.

There were no adjustments to quoted market prices obtained from the pricing services during the three and six months ended June 30, 2026 or 2025.

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

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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.

The net put option fair value for Mosaic Health was $ 2,736 and $ 2,717 at June 30, 2026 and December 31, 2025, respectively.

The net put option fair value for Liberty Dental was $ 352 and $ 327 at June 30, 2026 and December 31, 2025, respectively.

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 March 31, 2026 and December 31, 2025 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 June 30, 2026 and December 31, 2025 is as follows:

Value Estimated Fair Value

Level I Level II Level III Total

March 31, 2026

June 30, 2026

Other invested assets $ 809 $ — $ — $ 787 $ 787

Commercial paper

724 — 724 — 724

Notes 31,044 — 29,068 — 29,068

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Options 1,726 — — 3,044 3,044

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.

During the three months ended June 30, 2026 and 2025, we recognized income tax expense of $ 483 an d $ 548 , respectively, which represent effective income tax rates of 24.9 % and 23.9 %, respectively.

During the six months ended June 30, 2026 and 2025 , we recognized income tax expense of $ 1,027 an d $ 1,161 , respectively, which represent effective income tax rates of 24.2 % and 22.8 %, respectively.

The increases in our effective income tax rate compared to the three and six months ended June 30, 2025 were primarily due to a current year net increase in reserves for uncertain tax positions.

Income taxes netted to a payable of $ 52 at June 30, 2026 and a receivable of $ 436 at December 31, 2025.

We recognized income taxes receivable of $ 224 and $ 587 as an asset under the caption “Other current assets” and income taxes payable of $ 276 and $ 151 as a liability under the caption “Other current liabilities” in our consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.

Medical Claims Payable

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:

A reconciliation of the beginning and ending balances for medical claims payable for the six months ended June 30, 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 $ 18,144 $ 16,871

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:

At June 30, 2026, the total of net incurred but not reported liabilities plus expected development on reported claims was $ 15,133 , $ 2,419 and $ 548 for the claim years 2026, 2025, and 2024 and prior, respectively.

The favorable development recognized in the six months ended June 30, 2026 resulted from both favorable trend and completion factor development from 2025.

The favorable development recognized in the six months ended June 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 reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the six months ended June 30, 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 March 31, 2026 is as follows:

Net medical claims payable, end of period $ 18,100

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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

The carrying value of our long-term debt at June 30, 2026 and December 31, 2025 consists of the following:

June 30, 2026 December 31, 2025

Senior unsecured notes $ 31,019 $ 31,871

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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

We also maintain borrowing arrangements with 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”), under which we may obtain advances.

The following table summarizes our outstanding short-term borrowings and advances as of June 30, 2026 and December 31, 2025.

Facility June 30, 2026 December 31, 2025

Senior revolving credit facility $ — $ —

Commercial paper program $ — $ —

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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.

We were in compliance with our debt covenants as of June 30, 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.

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(i) there are novel or unsettled legal issues presented, (ii) the proceedings are in early stages, (iii) there is uncertainty as to the likelihood of a class being certified or decertified or the ultimate size and scope of the class, (iv) there is uncertainty as to the outcome of pending appeals or motions, (v) there are significant factual issues to be resolved, and/or (vi) in many cases, the plaintiffs have not specified damages in their complaint or in court filings.

With respect to the cases described below, we contest liability and/or the amount of damages in each matter, and we believe we have meritorious defenses.

With respect to the cases described below, we contest the liability and/or the amount of damages in each matter, and we believe we have meritorious defenses.

We do not believe the outcome of any known pending or threatened legal actions or proceedings will, in the aggregate, have a material impact on our financial position.

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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 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.

The BCBSA and Blue plans approved and entered into a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”) and a separate settlement agreement and release with the provider plaintiffs (the “Provider Settlement Agreement”) which settlement received final approval from the Court in September 2022 and August 2025, respectively.

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

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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.

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.

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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.

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 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.

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In March 2023, discovery commenced.

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

Fact and expert discovery are ongoing with current completion deadlines of August 31, 2026 and May 10, 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.

In connection with the notice that the Company received in February 2026 from the Centers for Medicare & Medicaid Services (“CMS”) regarding certain Medicare Advantage risk adjustment data submission requirements related to diagnosis codes for dates of service 2015 through April 2023, CMS provided a series of steps required to be completed by July 31, 2026 in order to avoid sanctions being imposed on the Company.

On July 13, 2026, the Company received a letter from CMS stating that the Company has completed all required steps, sanctions will not be imposed and the enforcement process for this matter has been closed.

As previously disclosed, the Company recorded an accrual in connection with the CMS Notice of approximately $ 935 at March 31, 2026 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.

On May 27, 2026 we paid CMS $ 342 , leaving an accrual balance of $ 593 as of June 30, 2026.

The $ 593 accrual was recorded in “Other current liabilities” on the consolidated balance sheet as of June 30, 2026 and the $ 935 in “Operating expense” on the consolidated statement of income for the six months ended June 30, 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 originally accrued.

Management currently estimates that the aggregate amount of such liability could range from approximately $ 320 less than the amount originally accrued up to $ 320 in excess of the amount originally accrued.

Other Contingencies

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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 $ 781 as of March 31, 2026.

We have financial guarantees related to standby letters of credit and surety bonds related to certain contractual commitments, which totaled $ 783 as of June 30, 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 $ 401 at March 31, 2026.

We have unfunded loan commitments to certain equity investees of $ 401 at June 30, 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 March 31, 2026, there were no significant concentrations of financial instruments in a single investee, industry or geographic location.

As of June 30, 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 three months ended March 31, 2026 is as follows:

A summary of stock option activity for the six months ended June 30, 2026 is as follows:

Shares Weighted-

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Forfeited or expired ( 0.1 ) 380.26

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:

Outstanding at June 30, 2026 3.7 $ 361.36 6.25 $ 204

Exercisable at June 30, 2026 2.3 $ 372.60 4.62 $ 123

A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the six months ended June 30, 2026 is as follows:

and Units Weighted-

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Forfeited ( 0.1 ) 399.66

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.

Nonvested at June 30, 2026 1.6 $ 355.60

During the six months ended June 30, 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 three months ended March 31, 2026 and 2025:

Three Months Ended March 31

The following weighted-average assumptions were used to estimate the fair values of options granted during the six months ended June 30, 2026 and 2025:

Six Months Ended June 30

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 three months ended March 31, 2026 and 2025:

Three Months Ended March 31

The following weighted-average fair values per option or share were determined for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30

Options granted during the period $ 76.04 $ 107.38

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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 three months ended March 31, 2026 and 2025 is as follows:

A summary of our cash dividend activity for the six months ended June 30, 2026 and 2025 is as follows:

Declaration Date Record Date Payment Date Cash

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

Three Months Ended March 31, 2025

April 21, 2026 June 10, 2026 June 25, 2026 $ 1.72 $ 373

Six Months Ended June 30, 2025

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

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.

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

On July 14, 2026, our Audit Committee declared a third quarter 2026 dividend to shareholders of $ 1.72 per share, payable on September 25, 2026 to shareholders of record at the close of business on September 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 three months ended March 31, 2026 and 2025 is as follows:

Three Months Ended March 31

A summary of common stock repurchases for the six months ended June 30, 2026 and 2025 is as follows:

Six Months Ended June 30

Shares repurchased 4.4 3.2

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Shareholders' Earnings per Share

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

The denominator for basic and diluted shareholders' earnings per share for the three and six months ended June 30, 2026 and 2025 is as follows:

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

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

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

217.0 225.2 218.4 225.8

Effect of dilutive securities – employee stock options and non-vested restricted stock awards 0.9 0.6 0.7 0.7

Denominator for diluted shareholders' earnings per share

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.

217.9 225.8 219.1 226.5

During the three months ended June 30, 2026 and 2025, weighted-average shares related to certain stock options of 1.8 and 1.9 , respectively, were excluded from the denominator for diluted shareholders' earnings per share because the stock options were anti-dilutive.

During the six months ended June 30, 2026 and 2025, weighted-average shares related to certain stock options of 1.8 and 1.7 , 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.

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CarelonRx offers a comprehensive pharmacy services portfolio, which includes all core pharmacy services, such as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database and member services, as well as infusion services and injectable therapies.

Our Carelon Services segment integrates physical, behavioral, pharmacy, and social services with the aim of delivering whole health affordably by offering a broad array of healthcare related services and capabilities to internal and external customers through our Carelon Health and Carelon Insights businesses.

Our Carelon Services segment integrates physical, behavioral, and social services with the aim of delivering whole health affordably by offering a broad array of healthcare related services and capabilities to internal and external customers through our Carelon Health and Carelon Insights businesses.

Carelon promotes affordability by managing complex areas of the healthcare system, leveraging data and insights to ensure members receive safe, appropriate, high-quality care and providers are reimbursed accurately and timely.

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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 months ended March 31, 2026 and 2025 is as follows:

Financial data by reportable segment for the three and six months ended June 30, 2026 and 2025 is as follows:

Benefits CarelonRx Carelon

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& Other Eliminations Total

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Premiums $ 40,647 $ — $ 833 $ 833 $ — $ ( 201 ) $ 41,279

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Operating gain (loss) $ 896 $ 582 $ 366 $ 948 $ ( 81 ) $ — $ 1,763

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Premiums $ 39,710 $ — $ 1,863 $ 1,863 $ — $ ( 302 ) $ 41,271

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Operating gain (loss) $ 1,560 $ 536 $ 400 $ 936 $ ( 71 ) $ — $ 2,425

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:

Benefits CarelonRx Carelon

Services Total Corporate

& Other Eliminations Total

Six Months Ended June 30, 2026

Premiums $ 81,099 $ — $ 1,612 $ 1,612 $ — $ ( 408 ) $ 82,303

Product revenue — 12,489 — 12,489 — — 12,489

Service fees 4,111 7 410 417 — — 4,528

Operating revenue - unaffiliated 85,210 12,496 2,022 14,518 — ( 408 ) 99,320

Operating revenue - affiliated — 9,354 13,318 22,672 10 ( 22,682 ) —

Operating revenue - total $ 85,210 $ 21,850 $ 15,340 $ 37,190 $ 10 $ ( 23,090 ) $ 99,320

Benefit expense

$ 72,192 $ — $ 12,829 $ 12,829 $ 15 $ ( 12,397 ) $ 72,639

Cost of products sold

— 20,303 — 20,303 — ( 9,348 ) 10,955

Operating expense

9,965 383 1,675 2,058 1,199 ( 1,345 ) 11,877

Operating gain (loss) $ 3,053 $ 1,164 $ 836 $ 2,000 $ ( 1,204 ) $ — $ 3,849

Six Months Ended June 30, 2025

Premiums $ 79,298 $ — $ 3,363 $ 3,363 $ — $ ( 503 ) $ 82,158

Product revenue — 11,851 — 11,851 — — 11,851

Service fees 3,715 7 455 462 — — 4,177

Operating revenue - unaffiliated 83,013 11,858 3,818 15,676 — ( 503 ) 98,186

Operating revenue - affiliated — 8,901 10,159 19,060 397 ( 19,457 ) —

Operating revenue - total $ 83,013 $ 20,759 $ 13,977 $ 34,736 $ 397 $ ( 19,960 ) $ 98,186

Benefit expense

$ 69,880 $ — $ 11,609 $ 11,609 $ 18 $ ( 9,489 ) $ 72,018

Cost of products sold

— 19,168 — 19,168 — ( 8,892 ) 10,276

Operating expense

9,356 453 1,477 1,930 590 ( 1,579 ) 10,297

Operating gain (loss) $ 3,777 $ 1,138 $ 891 $ 2,029 $ ( 211 ) $ — $ 5,595

A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and six months ended June 30, 2026 and 2025 is as follows:

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Reportable segments’ operating revenue $ 49,826 $ 49,421 $ 99,320 $ 98,186

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Total revenues $ 50,474 $ 49,776 $ 100,655 $ 98,667

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:

A reconciliation of reportable segments' operating gain to income before income tax expense included in our consolidated statements of income for the three and six months ended June 30, 2026 and 2025 is as follows:

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Income before income tax expense $ 1,937 $ 2,292 $ 4,241 $ 5,089

5 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