Shares of Elevance Health (ELV) advanced Thursday after the health insurance provider reported better-than-anticipated results on higher premiums, acquisitions, and growth of its pharmacy coverage unit. It also raised its dividend.

The company posted fourth-quarter adjusted earnings per share (EPS) of $3.84, with operating revenue up 6% year-over-year to $45.0 billion. Both exceeded analysts' estimates compiled by Visible Alpha.

Revenue at the Health Benefits segment gained 3% to $37.6 billion, driven by rising premium yields. Revenue for the Carelon division climbed 19% to $14.7 billion on the "launch and growth of risk-based capabilities in Carelon Services and acquisitions completed in 2024."

CEO Touts 'Tangible Progress in Improving Our Operations'

CEO Gail Boudreaux said the performance demonstrates "tangible progress in improving our operations in response to the dynamic environment facing the industry."

Elevance announced it would increase its quarterly per-share dividend to $1.71 from $1.63. The first-quarter dividend is payable on March 25 to shareholders of record at the close of business on March 10.

Despite today’s roughly 3% rise, Elevance Health shares are down about 15% in the last year.