New York, Jan 28, 2026, 21:22 (EST) — Market closed.
- Elevance Health shares rebounded, closing 5.9% higher at $341.85 following a sharp drop the day before
- The insurer projected a 2026 adjusted profit of no less than $25.50 per share, while also anticipating a decline in revenue
- Medicare Advantage payment rules and shifts in medical costs continue to drive the main swings
Shares of Elevance Health, Inc. (ELV) bounced back 5.9% on Wednesday, closing at $341.85. The gain followed a sharp decline the previous session, as investors parsed the insurer’s 2026 guidance and remarks on costs. (Elevancehealth)
This shift is crucial now, as managed-care stocks hinge on two factors simultaneously: the trajectory of U.S. policy regarding government-backed plans and the persistent rise in medical costs. Both remain difficult to gauge from just a single quarter’s data.
Earlier this week, the Trump administration put forward a nearly flat 0.09% average boost for 2027 Medicare Advantage payments, the privately managed arm of Medicare. The move hit insurer stocks in after-hours trading. CMS Administrator Mehmet Oz described the proposal as aimed at “making sure Medicare Advantage works better for the people it serves.” (Reuters)
Elevance reported a 10% jump in fourth-quarter operating revenue to $49.3 billion, with adjusted earnings hitting $3.33 per share. The company forecast 2026 adjusted earnings of at least $25.50 per share, alongside a low single-digit drop in operating revenue. CEO Gail Boudreaux expressed confidence that Elevance can “return to at least 12% adjusted EPS growth” by 2027. (Elevancehealth)
On Wednesday, the company filed an 8-K that included its earnings release and updated guidance, outlining its recent results and future outlook. (SEC)
Wall Street heard caution, not a clear beat. Analysts had forecast adjusted 2026 profits at $26.90 a share, but Elevance’s quarterly revenue fell short of expectations even though adjusted profits beat estimates, according to LSEG data cited by Reuters. Allen Coker of Manning & Napier labeled it a “show me” year. (Reuters)
J.P. Morgan analyst Lisa Gill described the outlook as below consensus but still offering upside potential. She called the 2026 guidance “in line with our expectations of what the company can grow from,” according to a note cited by Healthcare Dive. (Healthcare Dive)
The tape turned volatile. ELV dropped 14.33% Tuesday, hitting $322.92, but bounced back Wednesday to close at $341.85. (Investing)
The move wasn’t limited to Elevance. Humana dropped 21.10% and UnitedHealth tumbled 19.61% in late trading Tuesday, as managed-care stocks shook off Medicare-related uncertainty and fresh sector guidance. (Investing)
But the risk remains: if utilization remains high while pricing slips behind, 2026 earnings might miss the market’s expectations despite this week’s adjustment. Elevance warned of a weaker profit forecast for 2026 and projected a slight drop in revenue, according to a Reuters report shared by Fidelity. (Fidelity)
Before Thursday’s session, traders are eyeing if the rebound sticks and if new analyst reports shift attention from the quarterly beat to the margin math in Medicaid and Medicare Advantage. Options markets have already adjusted the group’s near-term range accordingly.
The next key calendar date is in Washington: CMS has set Feb. 25 as the deadline for comments on the 2027 Medicare Advantage advance notice. The final rate announcement must follow by April 6 at the latest. (Cms)
