TLDR
- UnitedHealth (UNH) stock rose 1.7% to $384.96 on Tuesday after a Q3 earnings beat.
- Adjusted EPS came in at $4.69 against estimates of about $4.14, with revenue of $112.7 billion.
- Full-year adjusted EPS guidance rose to at least $20.50, up from $19.50 to $20.
- The medical-cost ratio fell to 88.4%, down from 89.9% a year earlier.
- Medicare membership is down by 935,000 seniors since the end of 2025.
UnitedHealth Group (UNH) stock rose 1.7% to $384.96 on Tuesday after the company beat third-quarter earnings estimates and raised its full-year outlook. The S&P 500 was nearly flat on the day.
UnitedHealth Group Incorporated, UNH
The stock closed at $378.52 on Monday. It was up more than 2% in premarket trading before settling at the smaller gain.
Adjusted earnings per share were $4.69. Analysts had expected between $4.12 and $4.14, depending on the source.
Revenue came in at $112.7 billion, ahead of the $111.31 billion consensus. That was roughly flat from a year earlier.
For the full year, UnitedHealth now expects adjusted earnings of at least $20.50 per share. Its prior range was $19.50 to $20, and the consensus estimate sat at $19.87.
Costs Keep Easing
The medical-cost ratio was 88.4%. That beat the Wall Street forecast of 89.7% and improved from 89.9% a year ago.
Operating margin widened to 5.8% from 3.8% a year earlier. The operating cost ratio improved to 12.8% from 13.5%, though it was a bit worse than the 12.6% analysts expected.
Raymond James called it “another strong quarter” in a client note. Analysts pointed to the medical-cost ratio and strong results at Optum Health.
Optum Health delivered $588 million in adjusted earnings from operations. That puts it ahead of the pace needed for its full-year guidance of $2.215 billion.
Chief Financial Officer Wayne DeVeydt told Barron’s that medical costs are moderating across nearly all major categories in Medicare. Pharmacy, and specialty pharmacy in particular, is the exception.
He also warned that costs remain high compared with historical norms. “We have a long way to go still,” he said of Optum Health’s push for more preventive care.
Segment Results and Membership
UnitedHealthcare, the insurance business, posted revenue of $86.33 billion. That was down 0.8% from a year ago but above the $84.87 billion estimate.
Optum revenue fell 3.3% to $66.88 billion, slightly ahead of the $66.48 billion estimate. OptumRx brought in $39.93 billion, up 0.6%, while OptumInsight reported $5.47 billion.
OptumHealth missed, with revenue of $22.91 billion against the $23.37 billion estimate.
The results mark progress under CEO Stephen Hemsley, who returned in May 2025. The company has exited unprofitable lines, downsized its physician-group unit, and pulled back from some markets.
That retooling has cut Medicare membership. UnitedHealth is serving 935,000 fewer seniors than at the end of 2025.
The stock lost nearly 35% last year. It is now up 15% for 2026 through Monday’s close, just ahead of the S&P 500’s 14% gain.
Open enrollment for Medicare plans begins this month. DeVeydt said “growth is on the table for 2027,” based on how the company is positioned.
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