What changed in this filing

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Item 1. Financial Statements

2026-10-21 compared with 2026-07-15 · 203 added, 155 removed, 825 unchanged (30% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

September 30,

2026 December 31,

53 unchanged sentences

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2026 2025 2026 2025

17 unchanged sentences

Net income 1,343 1,187 4,557 5,115

Net loss (gain) attributable to noncontrolling interests

9 ( 1 ) 13 ( 2 )

Net loss attributable to noncontrolling interests 22 2 35 —

Shareholders’ net income $ 1,365 $ 1,189 $ 4,592 $ 5,115

7 unchanged sentences

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2026 2025 2026 2025

17 unchanged sentences

Other comprehensive income (loss) ( 969 ) 219 ( 1,229 ) 608

Net loss (gain) attributable to noncontrolling interests 9 ( 1 ) 13 ( 2 )

Other comprehensive income attributable to noncontrolling interests — ( 1 ) — ( 2 )

Net loss attributable to noncontrolling interests 22 2 35 —

Other comprehensive income (loss) attributable to noncontrolling interests 4 ( 2 ) 4 ( 4 )

Total shareholders’ comprehensive income $ 400 $ 1,406 $ 3,367 $ 5,719

2 unchanged sentences

Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended

Nine Months Ended

(In millions)

4 unchanged sentences

Equity in net earnings of other invested assets ( 1,108 ) ( 251 )

( 567 ) ( 138 )

Depreciation and amortization 1,083 1,140

22 unchanged sentences

Financing activities

Proceeds from long-term borrowings — 2,994

Repayments of long-term borrowings ( 750 ) ( 2,150 )

1 unchanged sentence

Repayments of short-term borrowings ( 975 ) ( 1,175 )

( 975 ) ( 5 )

Changes in securities lending payable 373 576

35 unchanged sentences

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

Net income — — — 1,365 — — — ( 22 ) 1,343

Other comprehensive income (loss) — — — — ( 967 ) 2 — ( 4 ) ( 969 )

Repurchase and retirement of common stock, including excise tax ( 0.8 ) — ( 34 ) ( 299 ) — — — — ( 333 )

Dividends and dividend equivalents — — — ( 375 ) — — — — ( 375 )

Other Adjustments — — — 2 — — — — 2

Issuance of common stock under employee stock plans, net of related tax benefits 0.1 — 104 — — — — — 104

September 30, 2026 216.1 $ 2 $ 8,987 $ 37,368 $ ( 1,109 ) $ ( 325 ) $ ( 242 ) $ 113 $ 44,794

Elevance Health, Inc.

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December 31, 2024 227.5 $ 2 $ 8,911 $ 33,549 $ ( 523 ) $ ( 399 ) $ ( 225 ) $ 111 $ 41,426

227.5 $ 2 $ 8,911 $ 33,549 $ ( 523 ) $ ( 399 ) $ ( 225 ) $ 111 $ 41,426

— — — 2,183 — — — 1 2,184

Net income — — — 2,183 — — — 1 2,184

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

1 unchanged sentence

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

( 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

0.4 — 52 — — — — — 52

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

— — — 1,743 — — — 1 1,744

Net income — — — 1,743 — — — 1 1,744

Other comprehensive income — — — — 147 2 2 1 152

1 unchanged sentence

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

( 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

0.1 — 92 — — — — — 92

June 30, 2025 224.8 $ 2 $ 8,931 $ 35,549 $ ( 142 ) $ ( 402 ) $ ( 216 ) $ 129 $ 43,851

Net income — — — 1,189 — ( 2 ) 1,187

Other comprehensive income (loss) — — — — 218 4 ( 5 ) 2 219

Noncontrolling interests adjustment — — — — — — —

Repurchase and retirement of common stock ( 2.9 ) — ( 115 ) ( 769 ) — — ( 884 )

Dividends and dividend equivalents — — — ( 383 ) — — ( 383 )

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

September 30, 2025 222.0 $ 2 $ 8,908 $ 35,586 $ 76 $ ( 398 ) $ ( 221 ) $ 129 $ 44,082

See accompanying notes.

1 unchanged sentence

Notes to Consolidated Financial Statements

June 30, 2026

September 30, 2026

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

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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 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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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 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.

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, 2026 and 2025 have been recorded.

The results of operations for the three and nine months ended September 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 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 $ 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.

These amounts totaled $ 500 and $ 348 at September 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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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.

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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 $ 187 and $ 167 at June 30, 2026 and December 31, 2025, respectively.

Premium receivables are reported net of an allowance for doubtful accounts of $ 180 and $ 167 at September 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 $ 153 and $ 145 at June 30, 2026 and December 31, 2025, respectively.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 236 and $ 145 at September 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 $ 1,737 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.

These receivables are reported net of an allowance for doubtful accounts of $ 1,758 and $ 1,509 at September 30, 2026 and December 31, 2025, 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 and $ 83 pertained to services rendered in 2024 and 2025, respectively.

Revenue Recognition:

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We charge these fee-based groups an administrative fee, which is based on the number of members in a group and the group’s claim experience.

In addition, service fees include amounts received for the administration of Medicare, certain other government programs, and administrative services arrangements of our Carelon subsidiaries.

For arrangements in which the group retains a portion of the claims risk and we assume risk for the remaining portion, amounts associated with the risk-based component are recognized as premiums, while fees for administrative services associated with the self-funded component are recognized as service fees.

In addition, service f ees include amounts received for the administration of Medicare, certain other government programs, and administrative services arrangements of our Carelon subsidiaries.

Generally, each fee-based arrangement includes services which constitute a single suite of services provided and for which consideration is based upon an agreed-upon rate, regardless of the amount of services provided in a given period.

As with premiums, each fee-based arrangement may include terms with retroactive rate or membership adjustments, performance incentives and penalties, each of which is a form of variable consideration within the transaction price.

Fee-based arrangements may include terms with retroactive rate or membership adjustments, performance incentives and penalties, each of which is a form of variable consideration within the transaction price.

As such, each fee-based arrangement contains a single performance obligation that constitutes a series, and revenue is recognized over time as the services are performed.

All benefit payments under these programs are excluded from benefit expense.

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.

benefit payments under these programs are excluded from benefit expe nse.

In addition, certain Medicaid payments received from government agencies that are required to be passed through to provider s and where we do not assume claims risk associated with those payments are exc luded from both revenue and benefit expense.

The determination o f 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.

1 unchanged sentence

Unaffiliated pharmacy customers include our fee-based groups that have contracted with CarelonRx for pharmacy services and third-party health plans.

Product revenues and costs of goods sold for our affiliated health plans are eliminated in consolidation, excluding co-payments and subsidies made by or on behalf of affiliated customers.

Product revenue and costs of products sold for our affiliated health plans are eliminated in consolidation, excluding co-payments and subsidies made by or on behalf of affiliated customers.

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.

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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 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 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, 2026 or December 31, 2025.

For the three and nine months ended September 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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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 June 30, 2026.

Actions to be taken under the Transformation Program were ongoing as of September 30, 2026.

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

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.

During the three and nine months ended September 30, 2026, we incurred Transformation Program costs of $ 18 and $ 147 , respectively, primarily related to office closures and staff reductions and relocations, including 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 June 30, 2026 was $ 114 , which included charges of $ 129 and payments of $ 15 made during the six months ended June 30, 2026.

The ending liability balance related to the employee termination costs under the Transformation Program at September 30, 2026 was $ 99 , which included charges of $ 129 and payments of $ 30 made during the nine months ended September 30, 2026.

Fixed Maturity Securities

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

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

Losses Allowance

Losses Estimated

June 30, 2026

September 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 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:

For fixed maturity securities in an unrealized loss position at September 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

June 30, 2026

September 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 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.

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

Allowances for credit losses have been recorded in the amount of $ 60 and $ 21 at September 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 September 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.

7 unchanged sentences

Equity Securities

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

June 30, 2026 December 31, 2025

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

September 30, 2026 December 31, 2025

Equity securities:

4 unchanged sentences

Other Invested Assets

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

June 30, 2026 December 31, 2025

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

September 30, 2026 December 31, 2025

Other invested assets:

4 unchanged sentences

Total $ 11,508 $ 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.

At September 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 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.

Net amounts receivable under these arrangements were $ 188 for the term loan and $ 188 for line of credit borrowings at September 30, 2026 and $ 188 for the term loan and $ 94 for line of credit borrowings at December 31, 2025, which are included under the caption “Other invested assets” in our consolidated balance sheets.

Interest income recognized from the financing arrangement during the three and nine months ended September 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.

Additional funding of $ 34 was provided during the six months ended June 30, 2026.

Additional funding of $ 0 and $ 34 was provided during the three and nine months ended September 30, 2026, respectively.

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

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.

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 June 30, 2026 and December 31, 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.

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 $ 197 and $ 583 for the three and nine months ended September 30, 2026, respectively, and $ 162 and $ 662 for the three and nine months ended September 30, 2025, respectively.

Mandatorily redeemable preferred equity in Liberty Dental of $ 168 and $ 137 is included in the caption “Other invested assets” in our consolidated balance sheets at September 30, 2026 and December 31, 2025, respectively.

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

Related party transactions in the normal course of business with Liberty Dental included administrative services to our Medicare Advantage members under a capitated arrangement amounting to $ 126 and $ 382 , for the three and nine months ended September 30, 2026, respectively, and $ 149 and $ 441 , for the nine months ended September 30, 2025, 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 six months ended June 30, 2026 and 2025 are as follows:

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

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

2026 2025 2026 2025

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Equity securities:

Unrealized gains recognized on equity securities still held at the end of the period — — ( 2 ) ( 6 )

Unrealized gains (losses) recognized on equity securities still held at the end of the period ( 8 ) 8 ( 8 ) 2

Net realized losses recognized on equity securities sold during the period ( 4 ) ( 7 ) ( 7 ) ( 9 )

Net losses on equity securities — ( 1 ) ( 3 ) ( 8 )

Net gains (losses) on equity securities ( 12 ) 1 ( 15 ) ( 7 )

Other investments:

Gross gains 26 8 34 13

Gross losses ( 1 ) ( 6 ) ( 6 ) ( 99 )

Gross gains from sales 21 28 58 41

Gross losses from sales ( 12 ) — ( 23 ) ( 100 )

Other realized losses recognized in income ( 55 ) ( 17 ) ( 150 ) ( 411 )

Net losses on other investments ( 35 ) ( 81 ) ( 68 ) ( 480 )

Net gains (losses) on other investments ( 46 ) 11 ( 115 ) ( 470 )

Net losses on investments $ ( 132 ) $ — $ ( 248 ) $ ( 594 )

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or (v) changes in expected cash flow.

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.

During the three and nine months ended September 30, 2026, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 3,447 and $ 9,243 , respectively.

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.

Accrued Investment Income

At June 30, 2026 and December 31, 2025, accrued investment income totaled $ 322 and $ 295 , respectively.

At September 30, 2026 and December 31, 2025, accrued investment income totaled $ 308 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 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.

The fair value of the cash and securities received as collateral for securities loaned at September 30, 2026 and December 31, 2025 was $ 3,064 and $ 2,691 , respectively.

The collateral received was 102 % of the market value of the loaned securities at each of September 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 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.

At September 30, 2026 and December 31, 2025, the remaining contractual maturities of our securities lending transactions included overnight and continuous transactions of cash for $ 2,373 and $ 2,136 , respectively, United States Government securities for $ 587 and $ 552 , respectively, and residential mortgage-backed securities for $ 104 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 $ 80 and received collateral of $ 34 related to our derivative financial instruments at June 30, 2026 and December 31, 2025, respectively.

We posted collateral of $ 372 and received collateral of $ 34 related to our derivative financial instruments at September 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 $ 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.

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 $ 184 and $ 192 as of September 30, 2026 and December 31, 2025, respectively.

During the three and nine months ended September 30, 2026, we recognized net gains of $ 86 and $ 66 , respectively, on non-hedging derivatives included in “Net losses on financial instruments” in our consolidated income statements.

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 included in “Net losses on financial instruments” in our consolidated income statements.

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 June 30, 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 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.

The terms of the agreement were amended in September 2026 whereby the put and call options were replaced with a variable-priced forward contract with specified purchase dates in 2027 for the majority owners' shares, subject to customary regulatory approvals.

Our purchase of the units held by the majority owners will be at a price based on certain multiples of Liberty Dental earnings, subject to various adjustments and qualifications, which is expected to total up to $ 600 based on current projections.

We have calculated the fair value of the forward contract as of September 2026, 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 agreement.

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 originally measured at fair value, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of June 30, 2026.

The fair value of the variable-priced forward contract of $ 227 , which is a non-cash item, was recorded under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of September 30, 2026.

Replacing the $ 396 net put option liability with the variable-priced forward contract resulted in a realized gain on financial instruments of $ 169 during the three months ended September 30, 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 June 30, 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 September 30, 2026 and December 31, 2025 is as follows:

Level I Level II Level III Total

June 30, 2026

September 30, 2026

Cash equivalents $ 5,687 $ — $ — $ 5,687

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

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.

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

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

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

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

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 $ 2,736 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.

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 and six months ended June 30, 2026 or 2025.

As discussed in more detail within Note 4, “Investments”, we entered into an agreement that included a put and call option associated with our minority interest ownership of Mosaic Health in 2024.

The resulting net put option liability was recorded at its fair value measured at the date 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 $ 2,763 and $ 2,717 at September 30, 2026 and December 31, 2025, respectively.

As discussed in Note 5, “Derivative Financial Instruments”, an agreement that included a put and call option associated with our minority interest ownership of Liberty Dental, for which the fair value of the net put liability was $ 327 at December 31, 2025, was replaced with a variable-priced forward contract recorded at fair value of $ 227 as of September 30, 2026.

The net put option liability was measured and recorded at fair value at the date of acquisition using Level III inputs, with an election not to mark the derivative to market.

The variable-priced forward contract is a derivative carried at estimated fair value.

For the three and nine months ended September 30, 2026, there were no material assets or liabilities measured at fair value on a nonrecurring basis other than the net put option on Mosaic Health.

Other than the goodwill and intangible assets acquired and liabilities assumed in our business acquisitions and the net put option 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

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

Value Estimated Fair Value

Level I Level II Level III Total

June 30, 2026

September 30, 2026

Other invested assets $ 901 $ — $ — $ 852 $ 852

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Options 1,726 — — 3,044 3,044

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.

During the three months ended September 30, 2026 and 2025, we recognized income tax expense of $ 451 an d $ 219 , respectively, which represent effective income tax rates of 25.1 % and 15.6 %, respectively.

During the nine months ended September 30, 2026 and 2025 , we recognized income tax expense of $ 1,478 an d $ 1,380 , respectively, which represent effective income tax rates of 24.5 % and 21.2 %, respectively.

The increase in our effective income tax rate compared to the three months ended September 30, 2025 was primarily due to investment tax credits purchased and recognized in the prior-year quarter, with less tax credits purchased in the current-year quarter.

The increase in our effective income tax rate compared to the nine months ended September 30, 2025 was primarily due to a current year net increase in reserves for uncertain tax positions.

Income taxes netted to a payable of $ 479 at September 30, 2026 and a receivable of $ 436 at December 31, 2025.

We recognized income taxes receivable of $ 206 and $ 587 as an asset under the caption “Other current assets” and income taxes payable of $ 685 and $ 151 as a liability under the caption “Other current liabilities” in our consolidated balance sheets as of September 30, 2026 and December 31, 2025, respectively.

Medical Claims Payable

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:

A reconciliation of the beginning and ending balances for medical claims payable for the nine months ended September 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 $ 18,094 $ 16,868

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:

At September 30, 2026, the total of net incurred but not reported liabilities plus expected development on reported claims was $ 16,192 , $ 1,445 and $ 412 for the claim years 2026, 2025, and 2024 and prior, respectively.

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

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 reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the nine months ended September 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 June 30, 2026 is as follows:

Net medical claims payable, end of period $ 18,049

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Long-term debt

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

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

September 30, 2026 December 31, 2025

Senior unsecured notes $ 30,732 $ 31,871

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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.

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.

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

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

Facility September 30, 2026 December 31, 2025

Senior revolving credit facility $ — $ —

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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 June 30, 2026.

We were in compliance with our debt covenants as of September 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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The cases were brought by two putative nationwide classes of plaintiffs, health plan subscribers and providers.

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.

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 settlements 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.

Fla.) (dismissed with prejudice in

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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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.

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

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

In October 2026, the California Superior Court issued an order on the applicable standard of review for the VHS case.

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;

Additional provider opt-out cases, The Regents of the University of California vs Blue Cross Blue Shield Association, et al., No.25CV154222 (Cal Super.) and Chinese Hospital Association, et al.

Blue Cross California, et al.

25CV113731 (Cal Super.), have been coordinated with the VHS case for case management purposes in a proceeding captioned.

In re Blue Cross Antitrust Cases , JCCP 5398 (Cal Super.) 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.

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In March 2023, discovery commenced.

Fact and expert discovery are ongoing with current completion deadlines of August 31, 2026 and May 10, 2027, respectively.

Fact and expert discovery are ongoing with current completion deadlines of November 20, 2026 and August 2, 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.

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.

In connection with the notice that the Company received in February 2026 from 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 had completed all required steps, sanctions would not be imposed and the enforcement process for this matter had been closed.

As previously disclosed, the Company recorded an accrual in connection with the CMS Notice of approximately $ 935 at March 31, 2026 representing our 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 September 30, 2026.

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

Independent Dispute Resolution (“IDR”) Matters

Under the No Surprises Act, certain out-of-network provider reimbursement disputes arising within the Company's commercial business are resolved through the federal IDR process.

The Company evaluates IDR matters on an ongoing basis and records liabilities for matters when losses are considered probable and reasonably estimable.

Following the finalization and implementation of the Federal IDR Operations Final Rule, the Company recorded liabilities of $ 669 , consisting of $ 44 related to fully insured arrangements and $ 625 related to administrative service arrangements, for certain IDR judgments and disputes that met these recognition criteria.

Because amounts related to administrative services arrangements are generally recoverable from the applicable customers under the terms of those contracts, the Company also recorded corresponding self-funded receivables of $ 575 , net of an allowance for doubtful accounts, as of September 30, 2026.

The Company is also involved in other pending IDR matters for which potential additional liabilities could amount to $ 324 , before any related customer recoveries.

Approximately 94 % of these potential liabilities relate to administrative service agreements.

No liabilities have been recorded for these matters because losses were not considered probable as of the reporting date.

The ultimate resolution of these matters remains uncertain and may be affected by future regulatory developments, litigation, and governmental reviews.

Federal Securities Class Action and Derivative Lawsuits

In May 2025, a putative federal securities class action, Miller v Elevance Health, Inc., et al., No.

1:25-cv-923, (S.D.

Ind.) (the “Securities Action”), was filed against the Company and certain of its executives in the U.S.

District Court for the Southern District of Indiana.

The plaintiff in the lawsuit alleges that the Company made false and misleading statements with respect to the Company’s 2024 earnings guidance in violation of federal securities laws.

The Company filed a Motion to Dismiss in November 2025 and the Court issued an opinion in September 2026.

The Court denied the Company’s motion allowing certain portions of the allegations to proceed.

Three related derivative lawsuits have been filed against the Company, as a nominal defendant, members of the board of directors, and certain officers.

These cases remain pending, are:

Boudreaux, et al.

49D11-2506-PL-028778, (In Superior), Silva v.

Boudreaux, et al., No.

1:25-cv-01270-RLY-TAB, (S.D.

Ind.) and Holzman v.

Boudreaux, et al.

49D01-2509-CE-044598, (In Superior) (the “Derivative Actions”).

The plaintiffs in the Derivative Actions allege that the individual defendants breached their fiduciary duties and committed other alleged misconduct in connection with the statements at issue in the Securities Action.

The Company will continue to vigorously defend these cases, which we believe are without merit;

however, their ultimate outcome cannot be presently determined.

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 (“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 $ 783 as of June 30, 2026.

(“CVS”), which is a subsidiary of CVS Health Corporation, pursuant to

an agreement (“CVS Agreement”).

CarelonRx has entered into a new five-year agreement with CVS that continues the CVS relationship under updated terms beginning January 1, 2027 through December 31, 2031, subject to certain early termination rights.

In the event of a termination by CarelonRx or non-renewal by either party, CarelonRx can elect to have CVS provide transition services for a period of at least 18 months.

We have financial guarantees related to standby letters of credit and surety bonds related to certain contractual commitments, which totaled $ 786 as of September 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 June 30, 2026.

We have unfunded loan commitments to certain equity investees of $ 301 at September 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 June 30, 2026, there were no significant concentrations of financial instruments in a single investee, industry or geographic location.

As of September 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 six months ended June 30, 2026 is as follows:

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

Shares Weighted-

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Forfeited or expired ( 0.2 ) 389.88

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:

Outstanding at September 30, 2026 3.6 $ 362.09 6.04 $ 200

Exercisable at September 30, 2026 2.2 $ 373.99 4.44 $ 119

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

and Units Weighted-

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Forfeited ( 0.2 ) 391.18

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.

Nonvested at September 30, 2026 1.6 $ 355.42

During the nine months ended September 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 six months ended June 30, 2026 and 2025:

Six Months Ended June 30

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

Nine Months Ended September 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 six months ended June 30, 2026 and 2025:

Six Months Ended June 30

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

Nine Months Ended September 30

Options granted during the period $ 76.29 $ 106.92

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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 six months ended June 30, 2026 and 2025 is as follows:

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

Declaration Date Record Date Payment Date Cash

Six Months Ended June 30, 2026

Nine Months Ended September 30, 2026

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

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

Six Months Ended June 30, 2025

July 14, 2026 September 10, 2026 September 25, 2026 $ 1.72 $ 373

Nine Months Ended September 30, 2025

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

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.

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

On October 20, 2026, our Audit Committee declared a fourth quarter 2026 dividend to shareholders of $ 1.72 per share, payable on December 18, 2026 to shareholders of record at the close of business on December 4, 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 six months ended June 30, 2026 and 2025 is as follows:

Six Months Ended June 30

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

Nine Months Ended September 30

Shares repurchased 5.2 6.1

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Shareholders' Earnings per Share

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:

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

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2026 2025 2026 2025

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217.6 223.7 218.6 225.6

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.

During the three months ended September 30, 2026 and 2025, weighted-average shares related to certain stock options of 1.6 and 2.2 , 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, 2026 and 2025, weighted-average shares related to certain stock options of 1.7 and 1.9 , 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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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 six months ended June 30, 2026 and 2025 is as follows:

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

Benefits CarelonRx Carelon

1 unchanged sentence

& Other Eliminations Total

Three Months Ended June 30, 2026

Three Months Ended September 30, 2026

Premiums $ 41,282 $ — $ 669 $ 669 $ — $ ( 247 ) $ 41,704

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Operating gain (loss) $ 436 $ 616 $ 292 $ 908 $ ( 75 ) $ — $ 1,269

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

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

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& Other Eliminations Total

Six Months Ended June 30, 2026

Nine Months Ended September 30, 2026

Premiums $ 122,381 $ — $ 2,281 $ 2,281 $ — $ ( 655 ) $ 124,007

11 unchanged sentences

Operating gain (loss) $ 3,489 $ 1,780 $ 1,128 $ 2,908 $ ( 1,279 ) $ — $ 5,118

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Premiums $ 119,602 $ — $ 5,125 $ 5,125 $ — $ ( 778 ) $ 123,949

11 unchanged sentences

Operating gain (loss) $ 4,378 $ 1,694 $ 1,110 $ 2,804 $ ( 292 ) $ — $ 6,890

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:

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, 2026 and 2025 is as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2026 2025 2026 2025

3 unchanged sentences

Total revenues $ 51,429 $ 50,711 $ 152,084 $ 149,378

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:

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, 2026 and 2025 is as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2026 2025 2026 2025

6 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