Key facts
- UnitedHealth Group raised its 2026 adjusted profit forecast to at least $20.50 per share.
- The company's third-quarter adjusted earnings per share of $4.69 beat analyst estimates of $4.14.
- UnitedHealth's medical cost ratio for the third quarter was 88.4%, down from 89.90% a year earlier.
- Third-quarter revenue from the insurance business fell to $86.3 billion from $87.1 billion.
- UnitedHealthcare membership declined by 165,000 in employer-sponsored plans and 85,000 in Medicaid.
- Overall third-quarter revenue rose to $112.694 billion, beating analyst expectations of about $111 billion.
UnitedHealth Group raised its 2026 profit forecast on Tuesday, citing improved cost controls in its health insurance business and better margins in its Optum clinical care and health technology units. The company's shares rose 4.5% in premarket trading.
For the third quarter, UnitedHealth reported adjusted earnings per share of $4.69, surpassing the average analyst estimate of $4.14. The company now expects its full-year 2026 adjusted profit per share to be at least $20.50, an increase from its previous forecast of at least $19.50 to $20. Analysts had projected 2026 earnings per share of $19.86.
The company's medical cost ratio, which represents the percentage of premiums spent on medical care, was 88.4% in the third quarter, an improvement from 89.90% in the same period last year and better than analyst estimates. UnitedHealth attributed this to plan design and new product pricing. Revenue from the insurance business decreased to $86.3 billion from $87.1 billion a year earlier, though earnings and profit margins rose due to benefit changes and cost controls.
UnitedHealthcare experienced a decline in membership, with 165,000 fewer people in its employer-sponsored health plans and 85,000 fewer in Medicaid due to eligibility changes. Since the end of 2025, 935,000 members have left its Medicare Advantage business.
Operating income for the third quarter increased to $6.6 billion from $4.3 billion a year ago, largely driven by improved operations in the Optum Health clinical unit. Technological investments have helped reduce the costs of providing medical services. Overall third-quarter revenue was $112.694 billion, beating analyst expectations of approximately $111 billion.