TLDR
- UnitedHealth Group reported Q3 adjusted earnings of $2.92 per share, beating the $2.80 consensus estimate.
- Quarterly revenue hit $113.2 billion, up from $100.8 billion year-over-year, matching analyst projections.
- The company lifted its full-year adjusted earnings guidance to at least $16.25 per share from $16.
- Medical-loss ratio of 89.9% came in below the 90.7% analyst forecast, showing improved cost control.
- Stock climbed 4.1% after the announcement, while peers Elevance Health and Humana rose 1.6% and 2.5%.
UnitedHealth Group announced third-quarter earnings that beat analyst estimates on Tuesday. The company posted adjusted earnings of $2.92 per share versus the $2.80 Wall Street consensus.
Quarterly revenue totaled $113.2 billion. This marked an increase from $100.8 billion in the same quarter last year and met analyst expectations.
The company raised its full-year adjusted earnings guidance. The new outlook calls for at least $16.25 per share, up from the prior $16 target.
UnitedHealth Group Incorporated, UNH
Net income for the quarter came in at $2.35 billion. This compared to $6.06 billion in the year-ago period.
CEO Stephen Hemsley said the results reflect solid execution toward strengthening performance. He noted the company remains focused on positioning for durable growth in 2026 and beyond.
Division Results Show Mixed Performance
The UnitedHealthcare insurance segment generated $87.1 billion in revenue. This represented a 16% jump from the prior year quarter.
Optum Health revenue stayed flat at $25.9 billion compared to last year. OptumRx, the pharmacy benefits division, brought in $39.7 billion in revenue, up 16% year-over-year.
The medical-loss ratio landed at 89.9%. This important metric, which tracks the share of premium revenue spent on medical claims and quality improvement, beat the 90.7% analyst estimate.
Healthcare utilization came in line with company expectations during the quarter. This alignment helped drive the better-than-expected medical-loss ratio performance.
Share Price Rebounds Continue
The stock gained 4.1% in premarket trading following the earnings report. Rival healthcare insurers also saw gains, with Elevance Health adding 1.6% and Humana up 2.5%.
UnitedHealth shares have climbed 45% since the beginning of August. Despite this rally, the stock remains down 28% for the year after challenges in the spring.
The company went through a leadership transition earlier this year. Hemsley took over as CEO in May, returning from his role as chairman.
A disclosed stake from Berkshire Hathaway helped boost investor confidence. The stock has shown steady improvement over the past three months.
Management reaffirmed earnings guidance in early September. This move suggested confidence in avoiding another guidance reduction.
The company’s Medicare business faces ongoing scrutiny from the Justice Department. UnitedHealth expects Medicare margins to improve in 2026.
Rising medical costs and regulatory changes continue to pressure the managed-care sector. The company is navigating these challenges while executing its turnaround plan.
Hemsley established conservative 2025 projections in July as part of a strategic reset. The guidance increase on Tuesday indicates progress in the recovery process.
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