UnitedHealth Group raises 2026 earnings outlook to at least $19.50 per share

UnitedHealth Group Incorporated (UNH) reported third-quarter 2026 revenue of $112.7 billion and raised its full-year 2026 earnings outlook, the company said Tuesday in a regulatory filing.

Diluted earnings were $4.56 per share, up from $2.59 a year earlier. Earnings from operations rose to $6.6 billion from $4.3 billion, and the net margin was 3.6%, compared with 2.1%.

Here's how the company did:

• Diluted earnings per share: $4.56 vs. $2.59 a year earlier
• Adjusted earnings per share: $4.69 vs. $2.92 a year earlier
• Revenue: $112.7 billion vs. $113.2 billion a year earlier
• Earnings from operations: $6.6 billion vs. $4.3 billion a year earlier

The company's adjusted results exclude intangible amortization, net portfolio divestitures and South American impacts, and restructuring and other items, according to its reconciliation of non-GAAP measures.

Guidance

The company now expects full-year 2026 diluted earnings of at least $19.50 per share and adjusted net earnings of at least $20.50 per share. The outlook incorporates experience through the third quarter.

The filing does not state the outlook it replaced, so the size of the change is not given.

“Our third quarter results reflect the discipline and execution our teams are bringing to every part of our business, as we continue evolving UnitedHealth Group to deliver a simpler, more supportive experience for patients and the clinicians who care for them,” said CEO Stephen Hemsley.

Segment results

Here's how the company's two business lines did during the quarter:

• UnitedHealthcare revenue: $86.3 billion vs. $87.1 billion a year earlier
• UnitedHealthcare earnings from operations: $2.8 billion vs. $1.8 billion a year earlier
• Optum revenue: $66.9 billion vs. $69.2 billion a year earlier
• Optum earnings from operations: $3.7 billion vs. $2.5 billion a year earlier

UnitedHealthcare's operating margin was 3.3%, compared with 2.1% a year earlier. The company said the increase was driven by benefit changes and pricing discipline, combined with medical and operating cost management.

UnitedHealthcare served 48.3 million people in the quarter. Seniors served through Medicare Advantage have contracted by 935,000 since year-end 2025, the filing said. The company said at least 69% of members are in 4+ Star plans for 2027 Medicare Advantage Stars results.

Employer & Individual revenue was $20.2 billion, up from $19.9 billion, though people served fell by 165,000 because of employer attrition. Medicare & Retirement revenue was $42.4 billion, compared with $43.4 billion, due to changes in membership and product mix.

Community & State revenue was $23.7 billion, compared with $23.8 billion. People served fell by 85,000 due to ongoing Medicaid eligibility changes.

Optum revenue was $66.9 billion, down from $69.2 billion, while earnings from operations rose to $3.7 billion from $2.5 billion.

Optum Health revenue fell 10% to $22.9 billion, as the company served fewer value-based care patients in markets where it lacked sufficient presence to sustain its clinicians. Its earnings from operations were $735 million, compared with $41 million a year earlier. Optum Insight revenue was $5.5 billion, up 3%, and its earnings from operations were $1.3 billion, compared with $920 million, driven by enhanced product offerings and operational efficiencies.

Optum Rx revenue was $39.9 billion, compared with $39.7 billion, and earnings from operations were $1.7 billion, up from $1.5 billion. Adjusted scripts were 393 million, down from 414 million, due to membership declines within UnitedHealthcare and other customers.

Costs and reserves

The medical care ratio was 88.4%, compared with 89.9% a year earlier, and included $610 million of net favorable prior period reserve development related to 2026 dates of service. The operating cost ratio was 12.8%, down from 13.5%. The company said it reflected realized operating efficiencies, partly offset by investments in technology, processes and people.

Losses related to South American businesses held for sale were $76 million in the quarter, the filing said.

Cash flow and capital returns

Cash flows from operations were $5.1 billion, or 1.2 times net income. The debt-to-capital ratio was 41.7% as of Sept. 30, compared with 41.2% in the second quarter. The company continues to target approximately 40.0% by year-end.

Year to date, the company repurchased $5.0 billion of its common stock and paid $6.2 billion in dividends.

For the first nine months, revenue was $336.4 billion, up from $334.4 billion. Diluted earnings were $17.50 per share, compared with $13.21, and adjusted earnings were $18.30 per share, up from $14.22.

Other commitments

The company committed $1 billion to the United Health Foundation to support rural healthcare, maternal and children's health and behavioral health. Nine-month figures include a $400 million contribution to the foundation, funded by the cash gain on the disposition of an Optum Insight business.

The company said it would voluntarily eliminate and rebate profits from individual Affordable Care Act coverage offerings in 2026, returning the money to approximately 1 million members. It is also eliminating 30% of its current prior approval volume by the end of 2026, the filing said.