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Elevance Health beats estimates on earnings, gives underwhelming guidance

Elevance Health, already battered after the Trump administration proposed keeping payments to private Medicare plans flat in 2027, reported earnings results on Wednesday that beat Wall Street estimates, but gave a disappointing full-year outlook.

For the last three months of 2025, Elevance Health reported:

  • $3.33 adjusted earnings per share, compared to the $3.10 analysts polled by FactSet were expecting.

  • $49.3 billion in revenue, compared to the $49.8 billion the Street was penciling in.

  • A medical cost ratio of 93.5%, right in line with estimates.

For full-year 2026, the company expects to report:

  • Annual adjusted earnings per share of at least $25.50, short of the $29.99 analysts are currently penciling in.

CEO Gail Boudreaux told analysts Wednesday morning that the company sees 2026 as a trough year. The outlook we provided today reflects prudent, achievable assumptions, grounded in pricing discipline, operational rigor, and targeted investments, she said.

The earnings report comes after the Trump administration said Tuesday it would seek roughly no change in rates for Medicare insurers, sending Elevance and a host of other major Medicare Advantage providers lower. The proposal complicates the turnaround story insurers like Elevance had been telling investors after taking a major hit in 2025 amid higher-than-expected medical costs.

Boudreaux said the company expects Medicare Advantage membership to decline in the high teens percentage range in 2026.”

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Amazon introduces one- and three-hour delivery options in hundreds of new towns and cities

Harder, better, stronger, faster... Amazon, not content with completely altering our expectations for how quickly our goods should arrive, is rolling out one- and three-hour deliveries in new cities in the US as it continues to double down on ultrafast delivery.

Per the company’s press release, one-hour delivery is now available in “hundreds of cities and towns” in the US, and three-hour options are offered in “over 2,000 cities and towns,” both available seven days a week though their regular same-day shopping experience. More than 90,000 products, which are typically available in local supercenters, are currently eligible for delivery under the two plans, and Amazon expects to bring the new scheme to more areas in the coming months.

Delivery fees for Prime members are set at $9.99 for one-hour delivery and $4.99 for three hours, though this price range more than doubles to $19.99 and $14.99, respectively, for customers without a Prime membership.

Regarding the new delivery options, Udit Madan, Amazon’s senior vice president of worldwide operations, said: “we’re excited to say that two decades after Prime launched, we’re still innovating to make delivery even faster, while maintaining the same everyday low prices and vast selection Amazon is known for.”

Indeed, since it launched same-day delivery in 2015, Amazon has been experimenting with a number of ultrafast delivery options, including recently piloting a 30-minute delivery service in selected US cities, built on its network of fulfillment centers and on-demand workers. The e-commerce giant’s latest push also comes as competitors like Walmart started to boost its delivery capacity, touting that it can deliver to 95% of American households in less than three hours.

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Oil’s retreat propels US stocks higher

Front-month West Texas Intermediate futures are down more than 4%, while Brent futures are off more than 2% as of 1:25 p.m. ET as traders glom on to some optimistic signs about the flow of oil through the all-important Strait of Hormuz:

  • A Pakistani-owned tanker passed through the strait this weekend while broadcasting its signal, per Reuters, “indicating ‌that some countries are able to negotiate safe passage for their vessels despite the U.S.-Israeli war on Iran.”

  • US President Donald Trump said that some “fairly local” countries would soon be helping ships traverse the strait (while having added that other countries are “not enthusiastic” about the prospect of participating).

The SPDR S&P 500 ETF and Invesco QQQ Trust are both up over 1% amid oil’s retreat.

That being said, the news flow is far from universally positive.

Reuters reports that the UAE’s crude output has been cut in half since the Mideast conflict started; Bloomberg says Kuwait’s production has suffered a similar decline.

  • A Pakistani-owned tanker passed through the strait this weekend while broadcasting its signal, per Reuters, “indicating ‌that some countries are able to negotiate safe passage for their vessels despite the U.S.-Israeli war on Iran.”

  • US President Donald Trump said that some “fairly local” countries would soon be helping ships traverse the strait (while having added that other countries are “not enthusiastic” about the prospect of participating).

The SPDR S&P 500 ETF and Invesco QQQ Trust are both up over 1% amid oil’s retreat.

That being said, the news flow is far from universally positive.

Reuters reports that the UAE’s crude output has been cut in half since the Mideast conflict started; Bloomberg says Kuwait’s production has suffered a similar decline.

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