According to the Zhitong Financial News app, UnitedHealth (UNH.US) reported its third-quarter 2026 results and raised its full-year profit guidance. Adjusted earnings per share for the third quarter were $4.69.
Dollar exceeded expectations, raising full-year guidance for the third time this year to at least $20.50. Quarterly revenue was $112.694 billion, down 0.4% year-over-year, but still above the market expectation of approximately $111 billion.
$1 billion. Operating profit was $6.563 billion, up 52% year-over-year, with a net profit margin of 3.6%. The company is the first major U.S. healthcare group to report third-quarter results, and its performance is seen as an industry bellwether.
On the profit side, GAAP-based diluted earnings per share were $4.56, a 76% year-over-year increase; adjusted earnings per share, excluding items such as amortization of intangible assets, asset disposals, and restructuring, were $4.69.
USD, up 61% year-over-year. According to analyst data compiled by LSEG, the market had expected adjusted earnings per share of $4.14, with the actual result exceeding expectations by $0.55. Net income attributable to common shareholders was $41.10
billion U.S. dollars, a 75% year-over-year increase.
Cost control was the primary driver this quarter. The medical loss ratio for the quarter was 88.4%, better than the analyst expectation of 89.9% and last year's同期.
89.90%, which the company attributes to adjustments in insurance product design and new pricing. The company disclosed that this ratio includes 6.10
Net favorable release of prior reserves of hundreds of millions of dollars—funds previously set aside for medical claims that were ultimately not utilized. Chief Financial Officer Wayne DeVeydt
It noted that medical cost growth "remains high but is very stable." The operating expense ratio decreased from 13.5% to 12.8% for the quarter; operating cash flow amounted to $5.1 billion, 1.2 times net income.
Looking at the business segments, the insurance segment, UnitedHealthcare, generated revenue of $86.33 billion, a 0.9% year-over-year decline, with operating profit increasing from $1.805 billion in the same period last year to
$28.31 billion, with profit margin increasing from 2.1% to 3.3%, serving 48.3 million members. The health services segment, Optum, generated revenue of $66.883 billion, a year-over-year decrease of
3.3%, operating profit increased from $2.51 billion to $3.732 billion; among which, Optum Health experienced a year-over-year revenue decline due to reducing services to patients in markets lacking sufficient value-based care infrastructure
From 10% to $2.291 billion, but operating profit rebounded from $41 million to $735 million.
According to reports, Optum Health is scaling back: At the beginning of the year, the company stated it would reduce approximately 20% of its clinics, about 550 locations, most of which have already been completed in the first half of the year, with the process continuing through 2026
End by the end of the year. DeVeydt said the goal is to transfer these clinics to new owners rather than shut them down, "We have no plans to close at this stage." He also stated that Optum Health's full-year operating profit will exceed
$2.2 billion.
Regarding membership, the company continues to proactively reduce its scale. Employer and individual business decreased by 165,000 this quarter, while community and state business declined by 85,000 due to Medicaid eligibility changes; the company disclosed that since
Since the end of 2025, the number of elderly members served through Medicare Advantage and related programs (including complex populations enrolled in Medicaid) has decreased by 935,000. The company stated
At least 69% of members in the 2027 Medicare Advantage Star Ratings are in four-star or higher plans, "as expected," and note 12 of the HEDIS quality measures
11 improvements. However, the federal government lowered the quality ratings for certain UnitedHealthcare plans last week, Evercore ISI and TD Cowen
Analysts estimate this could reduce the company's revenue by over $1 billion in 2028. DeVeydt said 2027
Annual membership numbers are expected to resume growth: "Is growth being considered? We believe so."
In terms of guidance, the company raised its full-year 2026 adjusted earnings per share guidance to at least $20.50 (previously $19.50–$20.00) and its GAAP diluted earnings per share guidance to at least $19.50. This marks the company’s third increase in full-year guidance this year. According to LSEG data, analysts’ previous consensus estimate for the company’s full-year 2026 earnings per share was $19.86, and the new guidance floor now exceeds consensus.
Stephen Hemsley, CEO of UnitedHealth
Indicated that the third-quarter performance "reflects the team's discipline and execution across all business areas." The company also listed several initiatives focused on affordability, healthcare authorization reform, and drug pricing transparency, including toward United
The Health Foundation is investing $1 billion, eliminating 30% of existing prior authorizations by the end of 2026, and providing 100% rebates to pharmaceutical manufacturers starting January 2028.
Transfer to customers, etc.
This latest guidance upgrade is the most recent step in the company’s transformation journey. Over the past two years, UnitedHealth has faced the largest cyberattack in U.S. healthcare history, missed financial targets, and temporarily withdrew its guidance, while also replacing several senior executives and exiting certain health insurance product lines. The company previously stated that its
Optum faces regulatory and cost challenges, with related impacts causing approximately $11 billion in losses to the subsidiary over three years. According to Bloomberg, the company is also seeking private equity assistance to operate certain physician clinics; as 2027 approaches
Federal policy changes, such as Medicaid work requirements, will further increase uncertainty.
Driven by upgraded earnings and guidance, UnitedHealth's stock rose in pre-market trading on October 13. As of press time, the stock was up 2.5% to approximately $388 in pre-market trading. The earnings report also boosted the share prices of UnitedHealth's peers, including Humana (HUM.US), CVS Health (CVS.US), Centene (CNC.US), Alignment Healthcare (ALHC.US), and Elevance Health (ELV.US).