UnitedHealth Lifts 2026 Profit Guidance After Beating Third-Quarter Estimates
UnitedHealth Group Incorporated (NYSE:UNH) reported third-quarter adjusted earnings of $4.69 per share, or $4.56 on a GAAP basis, topping Wall Street expectations of $4.14 per share. Quarterly revenue totaled $112.7 billion, exceeding consensus estimates of $111.31 billion, even as overall revenue fell from $113.2 billion a year prior due to a loss of 935,000 Medicare Advantage members since late 2025.
The medical care ratio fell to 88.4% from 89.9% a year earlier, aided by pricing discipline, benefit adjustments, cost management, and $610 million in favorable reserve developments for 2026 dates of service. Operating profit grew across key divisions, reaching $2.8 billion at UnitedHealthcare and $735 million at Optum Health. Following the solid results, the insurer raised its full-year 2026 adjusted earnings target to at least $20.50 per share from its previous forecast of $19.50 to $20.00.
Investors will watch how the health insurer manages Medicare Advantage enrollment moving forward. UnitedHealth noted that at least 69% of its Medicare Advantage members are enrolled in plans rated four stars or higher for 2027, meeting company expectations.
Key points
- UnitedHealth reported third-quarter adjusted EPS of $4.69 on revenue of $112.7 billion, beating analyst estimates of $4.14 per share on $111.31 billion.
- The medical care ratio improved to 88.4% from 89.9% in the prior-year period due to cost management and pricing discipline.
- UnitedHealth raised its full-year 2026 adjusted EPS guidance to at least $20.50, up from its previous range of $19.50 to $20.00.
- Medicare Advantage membership has declined by 935,000 members since the end of 2025.
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What were UnitedHealth's Q3 2026 earnings results?
UnitedHealth reported third-quarter adjusted earnings of $4.69 per share on $112.7 billion in revenue, beating Wall Street estimates of $4.14 per share on $111.31 billion.
Why did UnitedHealth raise its 2026 earnings forecast?
UnitedHealth raised its 2026 adjusted profit outlook to at least $20.50 per share due to lower medical care costs, pricing discipline, cost controls, and strong operating profits at UnitedHealthcare and Optum Health.
How many Medicare Advantage members did UnitedHealth lose?
UnitedHealth has lost 935,000 Medicare Advantage members since the end of 2025. However, at least 69% of its members remain in plans rated four stars or higher for 2027.