Should You Buy Elevance Health Stock For The Margin It Lost?

Elevance Health (ELV) has seen its net margin thin to 2.5% from a three-year average of 3.2%, primarily due to underperformance in its Medicaid segment. While the company has successfully restructured its Medicare Advantage business, it is now focusing on repairing Medicaid margins, including exiting unprofitable markets. Management's 2026 adjusted earnings-per-share guidance relies on Medicare Advantage and individual ACA, and the second half of 2026 will be crucial in determining if the Medicaid margin outlook is a prudent reflection or a sign of deeper issues.