Akcie UnitedHealth za poslední měsíc vzrostly o 12,3 %; analytický konsenzus očekává celoroční zisk na akcii ve výši 20,57 USD, což představuje meziroční nárůst o 25,8 %.
UnitedHealth Group (UNH - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this largest U.S. health insurer have returned +12.3% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Medical - HMOs industry, to which UnitedHealth belongs, has gained 10.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, UnitedHealth is expected to post earnings of $2.28 per share, indicating a change of +8.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $20.57 points to a change of +25.8% from the prior year. Over the last 30 days, this estimate has changed +4%.
For the next fiscal year, the consensus earnings estimate of $23.25 indicates a change of +13.1% from what UnitedHealth is expected to report a year ago. Over the past month, the estimate has changed +3.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UnitedHealth.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of UnitedHealth, the consensus sales estimate of $111.99 billion for the current quarter points to a year-over-year change of -1.1%. The $448.1 billion and $461.34 billion estimates for the current and next fiscal years indicate changes of +0.1% and +3%, respectively.
Last Reported Results and Surprise HistoryUnitedHealth reported revenues of $112.69 billion in the last reported quarter, representing a year-over-year change of -0.4%. EPS of $4.69 for the same period compares with $2.92 a year ago.
Compared to the Zacks Consensus Estimate of $111.38 billion, the reported revenues represent a surprise of +1.18%. The EPS surprise was +13.83%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UnitedHealth is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UnitedHealth. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
UnitedHealth Group (UNH -0.54%) is showing signs of a comeback after a challenging stretch, with earnings rising sharply in its latest report as its turnaround gains momentum. Still, whether investors should add shares, trim them, or sit tight comes down to one question: Can the company continue with its earnings recovery?
Image source: Getty Images.
UnitedHealth's earnings rebound is gaining momentum In the third quarter of 2026, adjusted earnings per share climbed around 61% from a year earlier, beating Wall Street expectations. Revenue also came in ahead of forecasts, while management raised its full-year adjusted earnings guidance to at least $20.50 per share. That's an improvement from its previous forecast of $19.50 to $20.00.
The encouraging part is that UnitedHealth isn't relying on revenue growth to improve its bottom line. Instead, it's working to price its insurance plans more carefully, control medical expenses, and streamline operations. These changes are helping it generate more profit from its existing business.
For investors who have been waiting for signs of a strong recovery, this is a meaningful step in the right direction. In fact, UnitedHealth's latest results are proof that its turnaround is picking up.
What's behind the improvement?
Better control over medical costs is driving recovery One of UnitedHealth's biggest challenges has been the rising cost of providing healthcare to its members. When patients use more medical services than expected, the company can end up paying out more in claims than its premiums were designed to cover.
That makes the latest improvement in its medical care ratio encouraging. The ratio fell to 88.4% compared with 89.9% a year earlier. That means the company spent a smaller share of its insurance premiums on medical care, leaving more room for profit.
Management says the improvement came from more disciplined pricing, changes to insurance benefits, and better medical cost management. The company has also adjusted its product offerings rather than expanding into areas that may not generate attractive returns.
If UnitedHealth can better match its premiums to the actual cost of care, it should be in a better position to expand margins and grow earnings over time. But the insurance business isn't the only part of the company worth watching.
Optum is showing signs of a turnaround UnitedHealth's Optum division provides healthcare services and pharmacy benefits, giving the company more ways to participate in the healthcare industry. In the past, Optum Health faced challenges around costs and operations.
But the latest results showed a huge improvement. Optum Health's operating earnings reached $735 million, up from just $41 million in the same period last year.
The opportunity here is significant. If Optum can continue improving profitability, it could become an important contributor to UnitedHealth's broader earnings recovery.
With both businesses improving, the next question is what that means for the stock.
UNH UnitedHealth Group$417.00-$2.26 (-0.54%)
NYSE · As of 4:00 PM ET 10/21/26
Is UnitedHealth stock worth buying after its latest earnings? Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating based on 26 analysts. Their target prices, meanwhile, are rather wide. Analysts expect UnitedHealth stock to trade between $380 and $529 per share over the next year, implying up to 32% upside. But with the stock trading at a price-to-earnings (P/E) ratio of about 23, the stock isn't exactly dirt cheap. Of course, investors today wouldn't be paying a premium either.
That said, UnitedHealth still has more work to do to make this recovery sustainable.
Membership has declined as the company cuts back on exposure to certain insurance plans and less profitable markets. Meanwhile, medical costs and stricter regulations could put pressure on future margins.
Those risks are real, but the company's efforts to improve margins are showing promising results. If UnitedHealth can sustain its earnings recovery, the stock could still have room to run.
The turnaround has strengthened the bull case for UnitedHealth. For patient investors, the comeback could be a reason to hold or add shares rather than sell, with further upside possible if earnings continue to recover.
Společnost UnitedHealth ve třetím čtvrtletí dosáhla upraveného EPS ve výši 4,69 USD, čímž o 13,8 % překonala odhady, a zvýšila výhled upraveného EPS pro rok 2026 na nejméně 20,50 USD.
Key Takeaways UnitedHealth's Q3 adjusted EPS beat estimates by 13.8%, while revenues exceeded expectations by 1.2%.UnitedHealth raised its 2026 adjusted EPS guidance to at least $20.50 despite elevated commercial costs.ETFs like IHF offer diversified healthcare exposure, with UnitedHealth weightings ranging more than 4%.
Shares of UnitedHealth Group Incorporated (UNH - Free Report) have jumped 6.3% on the bourses since the company released better-than-expected third-quarter 2026 results on Oct. 13. The healthcare service provider's quarterly figures showed strong financial execution and operational recovery, even as underlying headwinds persisted in the form of membership losses and elevated commercial costs.
The company’s chief financial officer Wayne DeVeydt raised 2026 adjusted earnings guidance to at least $20.50 per share, setting a stronger earnings base heading into 2027.
Given this upbeat outlook, investors may want to invest in America’s largest health insurer right away. However, given the current U.S. government's legislation last year, which includes major Medicaid funding cuts this year, UNH’s Medicaid business is likely to face significant downward margin pressure. To this end, UNH’s management continues to view 2026 as a trough year for core Medicaid margins.
Against this backdrop, prudent investors may be drawn to diversified healthcare exchange-traded funds (ETFs) with significant exposure to UNH, alongside other healthcare giants across pharma, biotech and medtech, as a more strategic investment choice. This would help investors gain from UNH’s upbeat outlook this year while avoiding the risks associated with its Medicaid business.
Before suggesting a few such ETFs for your portfolio, let’s take a detailed look at UnitedHealth’s third-quarter performance across key metrics and provide a brief outlook on what to expect in the coming months.
A Brief Analysis of UNH’s Q3 ResultsUnitedHealth’s third-quarter adjusted earnings per share (EPS) of $4.69 beat the Zacks Consensus Estimate by 13.8%, while its revenues beat the consensus mark by 1.2%.
On a year-over-year basis, the company delivered a mixed performance. Its earnings improved 60.6%, but revenues slipped 0.4%.
UNH’s adjusted medical care ratio (MCR) was 88.4% in the third quarter, which improved 150 basis points (bps) from the year-ago period.
The improvement reflects better medical cost management, benefit and pricing alignment, and care delivery enhancements.
Its operating cost ratio improved 70 bps year over year to 12.8% in the quarter, backed by ongoing investments to modernize operations and streamline administrative processes.
In its Optum Health business, UNH delivered strong performance in the third quarter, driven by the continued return to value-based care principles, combined with strong execution across its clinical programs and operational improvements, enabling clinicians to focus more on their patients and improve patient experience.
As for UNH’s commercial business, the company witnessed stable performance in the third quarter despite a tough market. However, UNH continues to experience higher-than-expected costs for this business, owing to a small number of doctors abusing the dispute process under the No Surprises Act (as mentioned in its third-quarter transcript), in addition to rising costs for specialty drugs and clinician care.
UNH expects to pay more than $8 billion in dividends by 2026-end.
Meanwhile, to make patient care faster and easier, the company is simplifying its prior approval process by cutting paperwork, increasing transparency and standardizing requirements across the industry. By the end of 2026, UNH plans to eliminate 30% of overall approval requirements, including nearly two-thirds of those for pediatric care and 10% from home health services, while expanding its "Gold Card" program to completely exempt top-performing doctors from routine approvals.
Additionally, more than 70% of remaining approvals will be streamlined through standardized electronic submissions, and performance metrics will be published publicly to keep clinicians and members informed.
Analysts’ ReactionFollowing UNH’s third-quarter results, Barclays analyst Andrew Mok maintained an Overweight rating but cut the stock’s price target from $441 to $440. Baird analyst Michael Ha maintained a Neutral rating and lowered the price target from $453 to $427.
UNH-Heavy ETFs to Watch
iShares U.S. Healthcare Providers ETF (IHF - Free Report)
This fund, with net assets worth $1.40 billion, offers exposure to 61 U.S. companies in the healthcare providers subsector, including insurers and service operators. UNH holds the first spot in this fund, with a 22.22% weight.
IHF jumped 22.4% year to date and charges 37 bps in fees. It traded at a good volume of 3.21 million shares in the last trading session and holds a Zacks ETF Rank #2 (Buy).
State Street Health Care Select Sector SPDR ETF (XLV - Free Report)
This fund, with assets under management (AUM) worth $46.19 billion, includes 61 companies in the pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology industries. UNH holds the fourth spot in this fund, with a 5.68% weight.
XLV rose 14.2% year to date and charges 8 bps in fees. It traded at a good volume of 8.55 million shares in the last trading session and sports a Zacks ETF Rank #1 (Strong Buy).
Vanguard Health Care Index Fund ETF (VHT - Free Report)
This fund, with net assets worth $21.8 billion, is exposed to companies that manufacture health care equipment and supplies or that provide health care-related services, and firms that are primarily involved in the research, development, production and marketing of pharmaceuticals and biotechnology products. UNH holds the fifth spot in this fund, with a 4.65% weight.
VHT soared 13.7% year to date and charges 9 bps in fees. It traded at a volume of 0.25 million shares in the last trading session and sports a Zacks ETF Rank #1.
UnitedHealth ve 3. čtvrtletí vykázal upravený zisk 4,69 USD na akcii a tržby ve výši 112,7 miliardy USD, čímž překonal očekávání trhu. Výhled upraveného zisku na akcii pro rok 2026 zvýšil na nejméně 20,50 USD.
Annex Advisory Services LLC grew its holdings in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 70.4% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 116,856 shares of the healthcare conglomerate’s stock after purchasing an additional 48,279 shares during the period. Annex Advisory Services LLC’s holdings in UnitedHealth Group were worth $42,896,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also modified their holdings of the business. North Capital Inc. bought a new stake in UnitedHealth Group in the third quarter worth $210,000. Milestone Asset Management LLC lifted its position in shares of UnitedHealth Group by 14.4% in the third quarter. Milestone Asset Management LLC now owns 12,480 shares of the healthcare conglomerate’s stock worth $4,581,000 after buying an additional 1,570 shares during the last quarter. Detalus Advisors LLC acquired a new position in shares of UnitedHealth Group during the 3rd quarter valued at about $431,000. SLT Holdings LLC increased its holdings in shares of UnitedHealth Group by 6.1% during the 3rd quarter. SLT Holdings LLC now owns 7,328 shares of the healthcare conglomerate’s stock valued at $2,690,000 after acquiring an additional 419 shares during the last quarter. Finally, Whitener Capital Management Inc. boosted its position in UnitedHealth Group by 14.9% during the third quarter. Whitener Capital Management Inc. now owns 4,475 shares of the healthcare conglomerate’s stock worth $1,643,000 after purchasing an additional 582 shares during the period. Hedge funds and other institutional investors own 87.86% of the company’s stock.
Insider Buying and Selling at UnitedHealth Group In other news, CEO Patrick Conway sold 1,169 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $390.00, for a total transaction of $455,910.00. Following the transaction, the chief executive officer owned 15,328 shares of the company’s stock, valued at $5,977,920. This represents a 7.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.19% of the stock is currently owned by insiders.
UnitedHealth Group News Roundup Here are the key news stories impacting UnitedHealth Group this week: Positive Sentiment: Q3 results and guidance exceeded expectations. UnitedHealth reported adjusted earnings of $4.69 per share versus the $4.14 consensus estimate, while revenue of $112.7 billion also topped forecasts. Management raised its 2026 adjusted EPS outlook to at least $20.50, supporting the recovery narrative. UnitedHealth Stock Moves Higher: What’s Going On? Positive Sentiment: Analyst support remains significant. JPMorgan raised its price target to $524 and maintained an “overweight” rating, while Goldman Sachs reportedly lifted its target to $506 after concluding that Medicare Advantage margin recovery is progressing faster than expected. JPMorgan Raises UnitedHealth Price Target Positive Sentiment: Potential growth areas could support 2027 and beyond. UnitedHealth’s focus on Medicare special-needs plans, expanded coverage and care-delivery operations may provide targeted growth while improving margins. Its low beta also makes UNH attractive as a defensive healthcare holding during inflation and market rotation away from technology stocks. Can UNH’s Focus on Special Needs Plans Strengthen Medicare Growth? Neutral Sentiment: Recent gains may have already priced in much of the good news. Commentary noted that the earnings beat and outlook increase were followed by questions about how durable the recovery will be, limiting the immediate upside despite bullish targets. UnitedHealth Beats on Earnings, But Investors Question Growth Path Negative Sentiment: Membership fell and medical costs remain high. Analysts are concerned that shrinking membership and elevated utilization could constrain revenue growth and margins, particularly if higher care costs persist. This is the main reason investors are questioning whether the earnings improvement can continue. UnitedHealth’s Q3 Margins Improve, But Membership Falls Negative Sentiment: Analyst views are mixed. Barclays issued a pessimistic forecast, Robert W. Baird cut its price target, and TD Cowen reiterated a “hold” rating with a $402 target, signaling limited near-term upside for some investors. UnitedHealth Group Price Performance Shares of UNH stock opened at $401.77 on Friday. The stock’s fifty day moving average is $387.07 and its 200-day moving average is $384.64. The stock has a market capitalization of $360.62 billion, a PE ratio of 19.92, a PEG ratio of 1.47 and a beta of 0.60. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.78 and a current ratio of 0.74. UnitedHealth Group Incorporated has a 52 week low of $255.96 and a 52 week high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last issued its quarterly earnings data on Tuesday, October 13th. The healthcare conglomerate reported $4.69 EPS for the quarter, topping analysts’ consensus estimates of $4.14 by $0.55. UnitedHealth Group had a net margin of 3.53% and a return on equity of 17.95%. The firm had revenue of $112.70 billion for the quarter, compared to analyst estimates of $111.31 billion. During the same quarter in the prior year, the firm earned $2.59 EPS. The company’s revenue was down .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 20.500- EPS. Equities research analysts expect that UnitedHealth Group Incorporated will post 20.65 EPS for the current fiscal year.
UnitedHealth Group Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th were paid a $2.32 dividend. This represents a $9.28 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Monday, September 14th. UnitedHealth Group’s dividend payout ratio (DPR) is 53.00%.
Analysts Set New Price Targets A number of analysts have recently weighed in on the stock. The Goldman Sachs Group boosted their price objective on shares of UnitedHealth Group from $435.00 to $490.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Evercore raised their target price on shares of UnitedHealth Group from $400.00 to $480.00 and gave the company an “outperform” rating in a research note on Tuesday, July 7th. Mizuho boosted their target price on shares of UnitedHealth Group from $470.00 to $493.00 and gave the stock an “outperform” rating in a research report on Monday, July 20th. Robert W. Baird decreased their price target on shares of UnitedHealth Group from $453.00 to $427.00 and set a “neutral” rating for the company in a report on Wednesday. Finally, Oppenheimer lifted their price objective on UnitedHealth Group from $420.00 to $500.00 and gave the stock an “outperform” rating in a research note on Friday, July 17th. Twenty equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $462.90.
Read Our Latest Analysis on UNH
UnitedHealth Group Company Profile (Free Report)
UnitedHealth Group Incorporated (NYSE: UNH) is a diversified health care and well-being company serving individuals, employers, health care providers and government programs. Its operations are organized primarily through UnitedHealthcare and Optum.
UnitedHealthcare provides health benefit plans and services, including employer-sponsored coverage, individual and family plans, Medicare and Medicaid offerings, and other government-supported programs. Its services include health insurance administration, pharmacy benefits and care management.
Optum provides health care services, technology and data solutions, pharmacy services, and analytics to health plans, employers, government agencies, health care providers and consumers.
Further Reading Five stocks we like better than UnitedHealth Group Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
Receive News & Ratings for UnitedHealth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UnitedHealth Group and related companies with MarketBeat.com's FREE daily email newsletter.
Assenagon Asset Management ve třetím čtvrtletí snížila svůj podíl ve společnosti UnitedHealth Group o 34,6 % prodejem 452 536 akcií; na konci období držela 853 517 akcií v hodnotě 313,309 milionu USD.
Assenagon Asset Management S.A. trimmed its position in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 34.6% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 853,517 shares of the healthcare conglomerate’s stock after selling 452,536 shares during the period. Assenagon Asset Management S.A. owned 0.10% of UnitedHealth Group worth $313,309,000 at the end of the most recent reporting period.
Other institutional investors have also recently made changes to their positions in the company. Corient Private Wealth LP purchased a new position in UnitedHealth Group in the 2nd quarter worth approximately $245,516,000. Legal & General Group Plc bought a new stake in UnitedHealth Group in the 2nd quarter valued at $2,444,928,000. Jupiter Topco LLC purchased a new stake in UnitedHealth Group in the 2nd quarter worth $2,019,844,000. BlackRock Inc. boosted its holdings in shares of UnitedHealth Group by 4.6% during the 2nd quarter. BlackRock Inc. now owns 76,863,061 shares of the healthcare conglomerate’s stock valued at $31,946,594,000 after purchasing an additional 3,395,530 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its position in shares of UnitedHealth Group by 141.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 4,109,029 shares of the healthcare conglomerate’s stock valued at $1,356,432,000 after purchasing an additional 2,410,128 shares in the last quarter. Hedge funds and other institutional investors own 87.86% of the company’s stock.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: Q3 earnings beat expectations: UnitedHealth reported adjusted EPS of $4.69 versus the $4.14 consensus estimate and revenue of $112.7 billion versus $111.31 billion expected. Revenue was roughly flat year over year, but profitability improved significantly. UnitedHealth Stock Moves Higher: What’s Going On? Positive Sentiment: Higher earnings outlook: Management raised its 2026 adjusted earnings forecast to at least $20.50 per share, above its previous $19.50–$20.00 range. The guidance increase was the primary catalyst for the stock’s upward move. UnitedHealth Group gains after Q3 beat and higher 2026 outlook Positive Sentiment: Margin recovery signals: The medical care ratio improved to 88.4%, while Optum generated $3.7 billion in earnings. Analysts also cited pricing discipline, benefit changes, care-delivery improvements and AI initiatives as potential supports for stronger 2027 growth. UNH Q3 Deep Dive: Margin Recovery and AI Initiatives Shape 2027 Outlook Positive Sentiment: Constructive analyst views: Goldman Sachs reportedly raised its price target to $506, while Piper Sandler maintained an overweight rating and lifted its target to $504. Mizuho also continues to view UNH as a top healthcare pick. Goldman Sachs raises UNH target price to $506 Neutral Sentiment: Defensive appeal: UnitedHealth is being highlighted as a low-beta healthcare stock that could benefit from investor demand for defensive companies if inflation and energy costs remain elevated. 3 Low-Beta Defensive Stocks to Buy as Inflation Continues to Surge Negative Sentiment: Growth risks remain: Analysts flagged shrinking membership, pressure from commercial medical costs and Medicaid, and uncertainty surrounding Medicare participation. TD Cowen reaffirmed a hold rating with a $402 target, while other firms reduced targets despite maintaining generally positive ratings. UnitedHealth Beats on Earnings, But Investors Question Growth Path Insider Buying and Selling In other UnitedHealth Group news, CEO Patrick Conway sold 1,169 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $390.00, for a total transaction of $455,910.00. Following the sale, the chief executive officer owned 15,328 shares of the company’s stock, valued at approximately $5,977,920. The trade was a 7.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.19% of the stock is owned by company insiders. UnitedHealth Group Price Performance UNH opened at $407.45 on Friday. The company has a current ratio of 0.74, a quick ratio of 0.78 and a debt-to-equity ratio of 0.66. The business’s fifty day simple moving average is $387.17 and its 200-day simple moving average is $384.52. The company has a market capitalization of $365.72 billion, a price-to-earnings ratio of 19.38, a PEG ratio of 1.43 and a beta of 0.60. UnitedHealth Group Incorporated has a 12-month low of $255.96 and a 12-month high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its earnings results on Tuesday, October 13th. The healthcare conglomerate reported $4.69 EPS for the quarter, beating analysts’ consensus estimates of $4.14 by $0.55. The business had revenue of $112.70 billion for the quarter, compared to the consensus estimate of $111.31 billion. UnitedHealth Group had a net margin of 3.53% and a return on equity of 17.95%. The company’s revenue for the quarter was down .4% on a year-over-year basis. During the same quarter last year, the firm posted $2.59 EPS. UnitedHealth Group has set its FY 2026 guidance at 20.500- EPS. On average, equities research analysts anticipate that UnitedHealth Group Incorporated will post 20.66 earnings per share for the current fiscal year.
UnitedHealth Group Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Monday, September 14th were given a dividend of $2.32 per share. This represents a $9.28 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Monday, September 14th. UnitedHealth Group’s dividend payout ratio is currently 59.72%.
Wall Street Analyst Weigh In A number of equities analysts recently commented on the company. Bank of America reissued a “buy” rating and set a $450.00 price target on shares of UnitedHealth Group in a research note on Monday, July 20th. TD Cowen reaffirmed a “hold” rating and set a $402.00 price objective on shares of UnitedHealth Group in a report on Thursday. Oppenheimer increased their target price on UnitedHealth Group from $420.00 to $500.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. HSBC raised their target price on shares of UnitedHealth Group from $300.00 to $380.00 and gave the company a “hold” rating in a report on Monday, July 6th. Finally, Jefferies Financial Group boosted their price objective on shares of UnitedHealth Group from $401.00 to $490.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Twenty analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $461.48.
Check Out Our Latest Research Report on UNH
(Free Report)
UnitedHealth Group Incorporated (NYSE: UNH) is a diversified health care and well-being company serving individuals, employers, health care providers and government programs. Its operations are organized primarily through UnitedHealthcare and Optum.
UnitedHealthcare provides health benefit plans and services, including employer-sponsored coverage, individual and family plans, Medicare and Medicaid offerings, and other government-supported programs. Its services include health insurance administration, pharmacy benefits and care management.
Optum provides health care services, technology and data solutions, pharmacy services, and analytics to health plans, employers, government agencies, health care providers and consumers.
See Also Five stocks we like better than UnitedHealth Group ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
Receive News & Ratings for UnitedHealth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UnitedHealth Group and related companies with MarketBeat.com's FREE daily email newsletter.
UnitedHealth bude v roce 2027 upřednostňovat speciální plány C-SNP a D-SNP; očekává, že marže v programu Medicare se v roce 2026 přiblíží horní hranici cílového rozpětí 2–4 %.
Key Takeaways UNH is prioritizing C-SNPs and D-SNPs for 2027 to drive targeted Medicare Advantage growth.C-SNPs will reach nearly 50M Medicare-eligible individuals, while D-SNPs will cover 74% of dual eligibles.UNH expects Medicare margins near the upper end of its 2%-4% target in 2026, aided by better cost management. UnitedHealth Group Incorporated (UNH - Free Report) is refining its Medicare Advantage strategy, emphasizing high-value health maintenance organization (HMO) plans and specialized coverage for seniors with complex healthcare needs. For 2027, UnitedHealthcare plans to prioritize Chronic Special Needs Plans (C-SNPs) and Dual Eligible Special Needs Plans (D-SNPs).
The opportunity is substantial. UnitedHealthcare's C-SNPs will be available to nearly 50 million Medicare-eligible individuals in 2027, offering tailored support for people managing conditions such as diabetes, cardiovascular disease and chronic heart failure. Meanwhile, its D-SNPs will reach approximately 74% of dual-eligible individuals, facilitating coordinated Medicare and Medicaid benefits. These plans can connect members with more coordinated care, medication support and preventive services, potentially creating opportunities to improve outcomes and limit avoidable healthcare spending.
UNH's approach also fits its broader shift toward more selective Medicare Advantage offerings. The company is adjusting plan benefits and market participation to better align coverage with healthcare costs. It expects Medicare margins to approach the upper end of its 2%-4% target range in 2026, reflecting improved cost management and product positioning. Integrated care through Optum Health could further support this strategy by coordinating services for members with complex needs.
Star ratings remain another consideration. UnitedHealthcare reported that at least 69% of its Medicare Advantage members are in plans rated four stars or higher for 2027. UNH's focus on special needs plans could support targeted growth, but execution, medical costs and quality performance can shape the results.
How Are Competitors Faring?Some of UNH’s major competitors in the healthcare service provider space are Humana Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) .
Humana is expanding its Chronic Condition Special Needs Plans into Pennsylvania, Utah and Wisconsin for 2027. HUM’s focus on tailored coverage and coordinated care could attract beneficiaries with complex conditions, while stronger Star Ratings may support its Medicare Advantage competitiveness.
Through its Wellcare brand, Centene is emphasizing affordable Medicare Advantage coverage and integrated care for dual-eligible beneficiaries in 2027. CNC’s coordinated Medicare-Medicaid offerings could strengthen its appeal among members with complex needs, although managing medical expenses remains key.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 19.5% in the year-to-date period compared with the industry’s rise of 22.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18, above the industry average of 15.73. UNH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.85 per share, implying 21.4% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth ve 3. čtvrtletí překonal odhady, když vykázal zisk 4,69 USD na akcii a tržby ve výši 112,694 mld. USD. Celoroční výhled upraveného zisku zvýšil na nejméně 20,50 USD na akcii.
UnitedHealth Group Incorporated (NYSE:UNH) on Tuesday posted upbeat third-quarter results.
UnitedHealth Group reported quarterly earnings of $4.69 per share which beat the analyst consensus estimate of $4.15 per share. The company reported quarterly sales of $112.694 billion which beat the analyst consensus estimate of $111.403 billion.
UnitedHealth raised its full-year 2026 adjusted earnings guidance to at least $20.50 per share from its previous range of $19.50 to $20. The revised outlook exceeds the analyst consensus estimate of $19.86.
The company also increased its GAAP earnings forecast to at least $19.50 per share, up from its previous guidance of $18.45 to $18.95. Analysts had expected $18.35 per share.
“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 Stephen Hemsley, chief executive officer of UnitedHealth Group.
UnitedHealth shares gained 3% to trade at $389.04 on Wednesday.
These analysts made changes to their price targets on UnitedHealth following earnings announcement.
Baird analyst Michael Ha maintained the stock with a Neutral and lowered the price target from $453 to $427.
Barclays analyst Andrew Mok maintained the stock with an Overweight rating and cut the price target from $441 to $440.
Earn 8% APY on a Real Estate-Backed Note from $5,000
EquityMultiple's Alpine Notes have distributed $478M+ with no missed payments. Accredited investors can start with $5,000 at a fixed 8% APY for 6 months.
Considering buying UNH stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Akcie společnosti UnitedHealth za tři měsíce klesly o 10,62 % kvůli úbytku členů, přesto Morgan Stanley zvýšila cílovou cenu na 529 USD, což znamená potenciál růstu o 40,1 %.
UnitedHealth has shed members, slipped 10% in three months, and closed lower on a beat-and-raise quarter. Now a major Wall Street firm is calling for 40% gains, and its argument centers on a business unit most investors are not watching…
UnitedHealth Group (NYSE:UNH | UNH Price Prediction) currently trades at $377.64. Wall Street’s average price target is $480.60, which puts the shares 27.3% below consensus.
UnitedHealth is the largest managed care company in the country. Its UnitedHealthcare insurance arm produces 80% of group revenue, and Optum runs its health services business. The company just beat third-quarter estimates and raised full-year guidance again. The stock still finished the day lower.
Morgan Stanley (NYSE:MS) raised its target from $468 to $529.00 and kept its Overweight rating. That Street-high target means 40.1% upside.
Shrinking Membership Drags UnitedHealth Through a 10% Three-Month Slide
Over three months, UnitedHealth has fallen 10.62%, slipping from $422.63 to $377.76. Shrinking membership is the biggest reason. UnitedHealthcare’s members fell to 48.3 million from 50.1 million a year earlier. Medicare Advantage alone has lost 935,000 members since the start of the year, and employers pulled another 165,000 commercial members in the third quarter.
On earnings day, the stock opened at $397.26, turned, and closed down 0.23%. Adjusted EPS of $4.69 beat the $4.15 consensus. However, revenue fell 0.4% from a year earlier. The medical care ratio improved to 88.4% from 89.9%, but $610 million of positive prior-period reserve development helped get it there.
This weakness is mostly UnitedHealth’s own. Elevance Health (NYSE:ELV) was flat over the same stretch. The company also faces pressure from CMS Star Ratings, Justice Department legal actions over its Medicare business, and Medicaid redeterminations.
Morgan Stanley’s $529 Target Rests on Margin Repair
Morgan Stanley’s thesis has three parts. First, it says that combining UnitedHealthcare with Optum creates a growth loop rivals cannot replicate. Second, it expects medical costs to normalize so margins can return toward historical targets. Third, it expects an aging population to keep driving Medicare Advantage volume.
The quarter backed up parts of that case. Optum Health’s operating earnings rose to $735 million from just $41 million after it left sub-scale value-based care markets. Total operating income grew 52.1%. Full-year adjusted EPS guidance is now at least $20.50, up from $19.50 to $20.00.
Estimates are rising. The 2027 EPS consensus is $22.6102, compared with $20.9705 90 days ago. On forward earnings, the stock trades at about 17x. The company has also bought back more than $5 billion of stock this year.
Of the 26 analysts covering UnitedHealth, 7 give it a Strong Buy, 15 call it a Buy, and 4 recommend Hold. None rate it Sell. Price targets are opinions, though. Morgan Stanley’s case depends on margin gains outpacing membership losses.
UnitedHealth Fell While Its Rivals Held Steady
Elevance was up 0.06% over three months. At $425.41, it sits 6.2% below its $451.71 target. Analysts give it 2 Strong Buy, 12 Buy, and 8 Hold ratings, so the Street sees far less upside than for UnitedHealth.
Cigna Group (NYSE:CI) slipped 2.59% over the past month. At $282.43, its $342.29 target means 21.2% upside. It has 6 Strong Buy, 12 Buy, and 6 Hold ratings, and it trades near 8x forward earnings.
Humana (NYSE:HUM) gained 3.28% over the past month and is up 64.13% this year. At $420.31, it sits 9.8% below its $461.50 target. Its 12 Hold ratings and 1 Sell make it the most divided name in the group.
UnitedHealth has the most analyst-implied upside in the group, whether you use the consensus target or the Street high. That makes its decline look like a story about the company itself.
UnitedHealth Still Leads the S&P 500 This Year
Despite the slide, UnitedHealth is up 16.64% year to date. The S&P 500 is up 14.09% over the same period. Over one year, the stock has gained 8.09%, compared with 17.48% for the index.
At $377.64, the stock is below its $388.46 50-day average and above its $357.79 200-day average. The price also sits well under its 52-week high of $458.79. Across 26 analysts, the consensus target of $480.60 means 27.3% upside. The dividend yields 2.36%.
Earnings Momentum Gives UnitedHealth the Edge
UnitedHealth looks compelling if Optum keeps improving, cost trends stay stable, and EPS estimates keep rising into next year. That path would support a higher multiple. It looks like a value trap if Medicare Advantage keeps losing members, Star Ratings cut bonus payments, or the Justice Department actions lead to penalties. Reserve releases that flattered this quarter’s results would make each of those risks harder to absorb.
I lean bullish. The company raised full-year guidance again this quarter, analysts keep lifting estimates, and the stock trades at about 17x forward earnings. Together, that suggests the market is overweighting membership losses. Still, the case depends on Medicare Advantage enrollment steadying, so watch for the next membership update.
Contact [email protected] for any questions or corrections.
UnitedHealth očekává, že marže v programu Medicaid dosáhnou v roce 2026 dna na úrovni mírně lepší než −1 %, poté se budou zlepšovat a v roce 2028 dosáhnou cílové úrovně.
UnitedHealth Group Inc. (NYSE:UNH) says its Medicaid business is bottoming and expects core Medicaid margins to improving after 2026.
UnitedHealthcare CEO Tim Noel told the company’s third-quarter earnings call that 2026 should be the trough year, now projected to be moderately better than minus 1%. Management said it expects margins to improve in 2027 and reach target levels by 2028.
UnitedHealth’s Medicare Advantage RatingsLast Friday, shares of health insurance companies, including UnitedHealth, traded higher after the U.S. Centers for Medicare & Medicaid Services (CMS) awarded five- and four-star ratings to plans offered by UnitedHealth, Clover Health Investments Corp (NYSE:CLOV) and Humana Inc. (NYSE:HUM).
This recognition comes as Humana reaffirmed its fiscal year 2026 adjusted EPS guidance and issued optimistic comments about fiscal years 2027 and 2028.
Network Adjustments Amid Rising CostsTo address rising costs, UnitedHealthcare and CVS Health Corp. (NYSE:CVS)‘s Aetna plan to tighten their Medicare Advantage networks by 2027.
In an Oct. 4 note, UnitedHealthcare President Bobby Hunter emphasized the need to respond to systemwide strain, citing higher medical and drug bills.
New Medicare Plans with $0 PremiumsTo expand access, UnitedHealthcare introduced its 2027 Advantage plans on Oct. 1, featuring $0 premiums and broader benefits.
The insurer aims to lower out-of-pocket costs and expand plan options for seniors. Over 94% of Medicare-eligible individuals will have access to a UnitedHealthcare plan, and 90% can choose a $0-premium plan.
The rollout includes updated UCard perks and $0 copays for primary care visits and Tier 1 prescription drugs.
Read also
UnitedHealth Raises Guidance: What It Means for XLV and Other Healthcare ETFs UnitedHealth Stock Wobbles Despite 61% Profit Jump, Boosted Outlook (CORRECTED) UnitedHealth Says Wall Street May Be Underestimating Its 2027 Earnings Potential Image: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
UnitedHealth zvýšila celoroční výhled upraveného zisku na akcii na nejméně 20,50 USD poté, co ve třetím čtvrtletí vykázala upravený zisk na akcii ve výši 4,69 USD oproti očekávaným 4,14 USD.
Vedle bank dnes reportuje výsledky hospodaření za třetí kvartál také zdravotnický gigant UnitedHealth, který překonal odhady Wall Street, a navíc vylepšil celoroční výhled. Skupina tak dál pokračuje ve stabilizaci podnikání po problémech v loňském roce, které vyplynuly z podcenění růstu nákladů na zdravotní péči. Akcie v prvotní reakci přidávaly v premarketu kolem tří procent.
Upravený zisk na akcii vzrostl meziročně o 61 procent na 4,69 dolaru při konsenzu trhu 4,14 dolaru. Tržby stagnovaly, když dosáhly 112,7 miliardy dolarů, avšak očekávání byla o 1,3 mld. USD níže.
Nad očekávání dopadly také tržby a provozní zisk v obou hlavních segmentech skupiny: v pojišťovací divizi UnitedHealthcare i ve zdravotnické a servisní části Optum.
Do výsledků se mj. pozitivně promítlo 610 milionů dolarů uvolněných z rezerv. Šlo o částku původně vyčleněnou na úhradu nákladů na zdravotní péči, která nakonec nebyla potřeba.
„Tento trend zůstává zvýšený, avšak velmi stabilní,“ citoval Bloomberg finančního ředitele Wayna DeVeydta v narážce na tempo růstu nákladů na zdravotní péči.
Společnost potěšila také zlepšeným výhledem. Nově očekává upravený zisk na akcii za celý rok nejméně 20,50 USD, zatímco dříve počítala s rozmezím 19,50 až 20 USD. Jedná se už o třetí navýšení výhledu v letošním roce, podotkla agentura Bloomberg.
Výsledky UnitedHealth jsou sledovány jako indikátor vývoje celého sektoru zdravotního pojištění v USA. Odvětví se v posledních letech potýká s růstem nákladů na zdravotní péči i s regulatorními změnami, které ovlivňují poskytovatele zdravotních služeb i pojišťovny.
UnitedHealth zároveň pokračuje v restrukturalizaci svého podnikání. Po loňských problémech s odhadem zdravotních nákladů firma omezila některé aktivity v programu Medicare Advantage a přistoupila k úpravám svého portfolia zdravotnických zařízení.
Významné změny probíhají zejména v divizi Optum Health, která provozuje síť lékařských ordinací a klinik. Společnost již dříve oznámila plán snížit počet provozovaných zařízení přibližně o pětinu, což představuje zhruba 550 lokalit.
Podle vedení většina tohoto procesu proběhla již během první poloviny roku a dokončení restrukturalizace se očekává do konce roku 2026. Cílem není kliniky uzavírat, ale převádět je pod nové vlastníky.
Výzvou zůstává Medicare Advantage
UnitedHealth se nadále musí vypořádat s tlakem v segmentu Medicare Advantage, tedy soukromě spravované verzi státního programu Medicare, která pokrývá více než polovinu oprávněných příjemců. Pojišťovna UnitedHealthcare, jež je součástí skupiny UnitedHealth, je největším poskytovatelem těchto plánů v USA. Tento trh byl v minulosti pro pojišťovny významným zdrojem zisků, v posledních letech však jeho atraktivitu snižuje růst zdravotních nákladů i přísnější dohled federálních úřadů.
Další komplikaci přineslo minulý týden rozhodnutí federálních úřadů snížit hodnocení kvality některých plánů UnitedHealthcare. Podle analytiků z Evercore ISI a TD Cowen by tento krok mohl společnosti v roce 2028 ubrat více než jednu miliardu dolarů na tržbách.
Současně UnitedHealthcare stejně jako další zdravotní pojišťovny omezuje některé programy a redukuje rozsah benefitů, aby si udržela ziskovost. Na trhu tak vzniká intenzivní boj o co nejvýnosnější klienty, přičemž cílem již není pouze navyšování počtu pojištěnců, ale především získání rentabilního pojistného kmene. V příštím roce navíc budou miliony amerických seniorů hledat nové zdravotní plány.
Od konce roku 2025 přišla UnitedHealthcare v programech Medicare Advantage a souvisejících schématech přibližně o 935 tisíc klientů z řad seniorů. DeVeydt však uvedl, že již v roce 2027 by se společnost mohla vrátit k růstu počtu pojištěnců. „Je růst opět ve hře? Domníváme se, že ano,“ uvedl.
Key Takeaways
UnitedHealth is slated to report earnings Tuesday morning. Recent options prices suggest traders see the stock swinging up to 6% by the end of the week.Analysts expect UnitedHealth to report a decline in revenue, but rise in profits from the year-ago quarter as the company has worked to cut costs.
UnitedHealth is set to report earnings Tuesday morning, with traders anticipating a significant move in the insurer’s stock.1
Based on current options pricing, UnitedHealth (UNH) shares are expected to swing up to 6% in either direction by the end of the week. A move of that size from Friday’s close could send the shares up to $403, or drag them below $355, erasing some of their recent gains.
UnitedHealth shares are up about 15% for the year, though they’ve pulled back from their highs in July. The insurance giant beat analysts’ estimates with its last two reports, also lifting its full-year forecast back in July.
Why This Matters to Investors
Another solid report could help extend the recovery UnitedHealth’s stock has staged this year after slumping last year.
Last week, an update from the federal government showed UnitedHealth lost ground in the latest Medicare Advantage star ratings, which could negatively impact its bonus payments. Analysts at UBS suggested the ratings outcome was better than feared, however, calling it a “relatively benign outcome.”2
UnitedHealth is expected to report third-quarter revenue of $111.35 billion, a decline of just under 2% year-over-year, with adjusted earnings per share of $4.07, up from $2.92 in the same time last year, according to Visible Alpha estimates.
Analysts are largely bullish on UnitedHealth ahead of Tuesday’s report. Nine of the 10 analysts tracked by Visible Alpha recommend buying the stock, while one holds a neutral rating. Their mean price target of $490 would suggest close to 30% upside from Friday’s close.
Do you have a news tip for Investopedia reporters? Please email us at
Společnost UnitedHealth má ve třetím čtvrtletí vykázat zisk 4,12 USD na akcii, což představuje meziroční nárůst o 41,1 %, při tržbách ve výši 111,38 miliardy USD, které mají klesnout o 1,6 %.
Key Takeaways UnitedHealth's Q3 earnings are projected to surge 41.1%, despite an expected 1.6% revenue decline.Declining memberships and premiums may pressure results, while improved cost management offers relief.UNH trades below its historical valuation median, with restructuring supporting recovery prospects. UnitedHealth Group Incorporated (UNH - Free Report) is set to report third-quarter 2026 results on Oct. 13, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.12 per share on revenues of $111.38 billion.
Third-quarter earnings estimates witnessed no movement over the past 60 days. The bottom-line projection indicates an improvement of 41.1% from the year-ago reported number. But the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 1.6%.
Image Source: Zacks Investment Research
For the current year, the Zacks Consensus Estimate for UnitedHealth’s revenues is pegged at $446.78 billion, implying a decline of 0.2% year over year. However, the consensus mark for current-year earnings per share is pegged at $19.85, implying an improvement of 21.4% on a year-over-year basis.
UnitedHealth beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 12.1%. This is depicted in the figure below.
Q3 Earnings Whispers for UNHOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
UNH currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping UNH’s Q3 Results?The Zacks Consensus Estimate for premium revenues for the third quarter indicates a 3.3% year-over-year decline, whereas our model estimate suggests a nearly 5% fall. Reduced contributions from both the UnitedHealthcare division and Optum Health are expected to have led to the decrease.
The Zacks Consensus Estimate for UnitedHealthcare’s total domestic commercial customers suggests a 1.3% year-over-year decline, whereas our estimate implies a 2.7% slip. The consensus mark for Medicare Advantage members indicates an 11.4% year-over-year decrease, while we expect an 11.7% decline. The same for Medicaid memberships implies a 9.1% fall from the year-ago level. These are likely to have pushed total memberships in the domestic market down from the year-ago period. The consensus estimate implies around a 4.1% reduction year over year. These are likely to have affected its revenues in the third quarter.
Nevertheless, improved medical cost management is likely to have provided some relief to UNH’s medical care ratio in the third quarter. The Zacks Consensus Estimate for the metric is pegged at 90.1%, indicating a slight deterioration from 89.9% in the year-ago quarter.
As such, the consensus mark for UnitedHealthcare’s operating income signals a 26.8% year-over-year jump. Moreover, the Zacks Consensus Estimate for operating income from the total Optum business segment suggests a 26.7% year-over-year increase.
UNH’s Price Performance & ValuationUnitedHealth's stock has gained 13.9% in the year-to-date period compared with the industry’s growth of 16.4%. Its peers, such as Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , have jumped 54.8% and 12.3%, respectively, during this time. Meanwhile, the S&P 500 has increased 14.7%.
YTD Price Performance – UNH, HUM, MOH, Industry & S&P 500 Image Source: Zacks Investment Research
Now, let’s look at the value UnitedHealth offers investors at current levels.
UNH is trading at 17.15X forward 12-month earnings, below its five-year median of 19.05X, but above the industry’s average of 15.16X. In comparison, Humana and Molina Healthcare are currently trading at 28.44X and 22.31X, respectively.
Image Source: Zacks Investment Research
How Should You Play UNH Stock Now?UnitedHealth appears well-positioned for a gradual recovery, supported by improving medical-cost trends, strategic portfolio optimization and a more favorable Medicare Advantage reimbursement environment. Management’s efforts to exit underperforming markets and prioritize profitable operations should strengthen margins and support earnings growth. Optum’s diversified operations and transition toward a more transparent pharmacy benefit model provide additional opportunities for long-term expansion. Meanwhile, disciplined capital deployment and shareholder-friendly initiatives reinforce the company’s financial flexibility.
However, that decline in memberships and persistent high healthcare utilization warrant attention. The upcoming third-quarter results will be crucial in assessing whether recent operational improvements are sustainable. Moreover, the company's valuation remains below its historical median, despite trading above the industry average.
Improving profitability prospects and continued business restructuring support an encouraging long-term outlook. With earnings estimates indicating a recovery and the stock offering potential for further appreciation, investors may consider accumulating shares at current levels.
UnitedHealth oznámí výsledky za 3. čtvrtletí a investoři budou sledovat hlavně medical care ratio. Ve 2. čtvrtletí klesl na 86,7 % z 89,4 % před rokem.
UnitedHealth Group (UNH +1.83%) will report its third-quarter financial results on Tuesday, Oct. 13, before the stock market opens.
As usual, investors will closely monitor the company's revenue and earnings per share and how those have changed from the same period a year ago. They'll also compare those figures to Wall Street's expectations for the quarter to see whether the giant insurer outperformed analysts' forecasts.
But there's another critical number for UnitedHealth that I'll be looking at even more closely: the medical care ratio, which is the percentage of insurance premiums it took in that were paid out to settle claims. It is a key metric to assess a health insurer's profitability.
Image source: Getty Images.
The federal government requires health insurers that sell large plans, as UnitedHealth does, to spend at least 85% of the premium dollars they receive on medical care and healthcare quality improvement. If they spend too much, though, it can affect the bottom line. Insurers need to meet that requirement as closely as possible to ensure profitability.
In the second quarter, UnitedHealth's medical care ratio fell to 86.7% from 89.4% a year earlier (the ratio surged to 89.9% in the third quarter of 2025). The company says the recent decrease was driven by benefit design and pricing discipline, as well as adjustments to its member mix. UnitedHealth management has been working hard to bring that critical ratio figure down, and it's been working.
Premium Feature
Moneyball Superscore
71/100
Today's Change
(
1.83
%) $
6.70
Current Price
$
371.90
The upcoming earnings report will tell us if UnitedHealth was able to maintain the lower ratio it achieved last quarter -- or even push it lower. That's the key to the company's profit margin, earnings per share, and, ultimately, its share price.
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
UnitedHealth shareholders spent five years waiting for a stock that barely budged, yet something inside the company kept growing the whole time. Whether that something is enough to make UNH worth holding now depends on costs that management has not…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Five years of owning UnitedHealth (NYSE:UNH | UNH Price Prediction) have produced a share price gain of just 3.30%. Over that same stretch, the company raised its dividend every year. The quarterly payout now stands at $2.32, or $9.28 annualized. The recent trend is healthy: shares are up 16.70% year to date and 12.72% over the past year, trading at $377.83. The longer window tells a different story. The stock has barely compounded, and the payout did the work the share price did not.
Raises Kept Coming Through the Company’s Worst Stretch In mid-2021, UnitedHealth paid $1.45 per quarter. That climbed to $1.65 in 2022, $1.88 in 2023, $2.10 in 2024 and $2.21 in 2025. The dividend record shows an increase every year since 2010.
The latest raise from $2.21 to $2.32 arrived after a brutal 2025. The third-quarter medical care ratio surged to 89.9% and operating income fell 50.45%. In the fourth quarter, a $2.88 billion pre-tax charge cut GAAP EPS to $0.01. Chief Executive Stephen Hemsley framed the year this way:
“We confronted challenges directly and finished 2025 as a much stronger company, giving us the momentum to better serve those who count on us and continue to improve our core performance.”
A Flat Five Years Hides a Sharp Recovery The price path inside 2026 has been steep. Shares sat at $282.59 at the January earnings release, $325.02 in April and $415.70 in July. The 52-week range runs from $252.96 to $458.79.
A shareholder counting on price appreciation over five years collected almost nothing. The income holder banked $9.06 per share in the past twelve months alone (the whole idea behind a dividend ladder built to fund retirement without selling shares, which we laid out in a free guide here).
Peers look weaker on income. Humana (NYSE:HUM) said it would maintain the dividend flat and guided 2026 adjusted EPS to at least $9.00, down from $17.14. Elevance Health (NYSE:ELV) nudged its quarterly payout to $1.72 from $1.71.
Cash Flow Covers the Payout, but Medical Costs Loom In 2025, UnitedHealth generated $19.697 billion in operating cash flow against $3.622 billion of capital spending and $7.916 billion in dividends. For 2026, it guides to roughly $24 billion of operating cash flow, about $8 billion in dividends and buybacks of at least $5 billion. Debt to capital fell to 41.2% from 44.1%. On the July call, management said:
“The durability of the underlying run rate is strong and you can see that in our cash flows.”
The threats sit in the cost line. Commercial trend is running “modestly above 11%”, and management conceded:
“We’re not yielding the full margin expansion for which we planned in 2026.”
Medicaid margins are guided to negative 1 to negative 1.7%, and DOJ actions concerning Medicare participation remain open. Second-quarter results also leaned on $860 million of favorable reserve development.
Verdict: A Dividend Built for Income Investors At a 2.38% yield, UnitedHealth is a moderate payer rather than a high-yield one. Its value is the raise pace, and cash flow still comfortably supports it. As an income holding, the case holds up. Keep an eye on the 88.1% medical care ratio target and 2027 Medicare bids.
Contact [email protected] for any questions or corrections.
UnitedHealth Group uvedla, že výhled je na dobré cestě díky silnějšímu Medicare Advantage, zlepšení v Medicaid a provozním zlepšením v Optum Health. Firma čeká, že marže v Medicaid letos budou blíž ztrátě 1,1 % než 1,7 %.
3 Companies That Could Thrive While the Fed Holds Rates SteadyUnitedHealth Group NYSE: UNH executives said the company’s turnaround remained on track, citing continued strength in Medicare Advantage, Medicaid performance that is tracking toward the favorable end of expectations, and operational improvements at Optum Health.
Speaking at an investor conference, CFO Wayne DeVeydt said the company’s outlook had not changed since its second-quarter earnings report. He said management is optimistic about 2026 but is increasingly focused on the pace of improvement heading into 2027 and 2028.
Get UnitedHealth Group alerts:
MarketBeat Week in Review – 07/27- 07/31“Trajectory of things continue to be positive,” DeVeydt said, pointing to Medicare performing better than expected, Medicaid tracking in line with expectations and Optum Health’s ongoing turnaround. He also noted continuing pressure in commercial insurance stemming from the independent dispute resolution, or IDR, process.
Medicare Advantage trends support upper end of margin range DeVeydt said the company had seen continued durability in the medical-cost trends observed through the first half of the year, though he declined to comment directly on third-quarter results.
UnitedHealth Just Gave Wall Street a Clearer Turnaround SignalIn Medicare Advantage, he said UnitedHealth’s first-half performance supported its expectation of landing in the upper half of its previously stated 2% to 4% margin range for the year. The company had repositioned its product portfolio entering the year, making what DeVeydt described as difficult decisions on product durability and sustainable margins.
Management expects its pricing and benefits to be competitive for 2027, he said. The company has made benefit-design changes in some markets and continues to rightsize products selectively. DeVeydt said those changes had affected customer experience measures, including CAHPS scores, but management believed they were necessary.
On Medicare Star ratings, DeVeydt said the company improved all four pharmacy metrics and improved 10 of 12 HEDIS metrics, while the other two remained stable. CAHPS performance declined as expected following benefit changes, he said.
Optum Health CEO Krista Nelson said the administration’s interest in expanding value-based care could extend beyond Medicare Advantage and into traditional Medicare. She said the Star program offers insight into improving outcomes while also identifying administrative burden in the health system.
Medicaid margins expected near favorable end of guidance UnitedHealth expects Medicaid margins to be closer to a 1.1% loss than a 1.7% loss this year, DeVeydt said. The company had previously projected a negative margin range of 1.1% to 1.7%.
He said the primary Medicaid issue had been funding rates rather than broad medical-cost trend. The company was seeking blended rate increases of roughly 6% to 7% across its Medicaid book, and those increases have materialized as expected, including off-cycle rate adjustments.
Behavioral-health costs had risen sharply in 2025, but DeVeydt said UnitedHealth has not seen a broader “halo effect” on medical trend and has been able to mitigate some behavioral-health trend. The company continues to view 2026 as a trough year for Medicaid margins, with a return toward breakeven or profitability expected in 2027.
To support margins, the company is pursuing a multiyear cost-reduction effort involving billions of dollars rather than hundreds of millions, DeVeydt said. Optum CFO Ben Eklo said the effort includes automation in claims, call operations, approvals, clinical documentation, revenue-cycle management and corporate functions such as finance, human resources and marketing.
Commercial business faces IDR and risk-pool pressure DeVeydt said commercial insurance margins held steady year over year but did not expand as management had expected. IDR accounted for roughly one percentage point of pressure, while changing risk pools also affected results.
He said a small number of companies account for a substantial portion of IDR cases, describing the process as a legislative loophole that requires congressional action. Until there is a legislative solution, UnitedHealth must price for the higher costs, which DeVeydt said adds pressure to consumer affordability.
The company has begun repricing initiatives and expects additional opportunities through the January renewal cycle. In the public exchanges, DeVeydt said membership has been more durable than expected following price increases and medical trends have aligned with pricing. He characterized the exchange business as a low-single-digit-margin business over time.
Optum Health cites clinical and operational gains Nelson said most of Optum Health’s first-half outperformance was driven by clinical management and operating execution rather than improved Medicare Advantage underwriting. She cited improvements in inpatient utilization, readmissions, skilled nursing facility admissions and length of stay.
Operational initiatives included physician productivity, scheduling improvements and expanded patient access. Nelson said Optum Health increased patient-facing hours by more than 12%, or 200,000 hours, during the first half.
The company has addressed or mitigated the vast majority of its addressable payer contracts for 2027, Nelson said. While top-line growth will not be the primary focus next year, Optum Health is targeting earnings growth and progress toward a 6% to 8% margin range, with 2027 also positioning the business for growth in 2028.
Eklo said Optum Insight is performing in line with expectations and is expected to finish 2026 closer to the upper end of its 18% to 22% margin range. The unit is investing in newer technology and AI-enabled products, including Optum Real, Crimson and Optum AI.
On capital deployment, DeVeydt said UnitedHealth expects its debt-to-capital ratio to approach 40% by the fourth quarter, compared with roughly 45% a year earlier. The company now expects to deploy at least $5 billion for share repurchases this year, up from an initial expectation of about $2.5 billion, while continuing dividend growth and pursuing acquisitions focused on value-based care and Optum Insight innovation.
About UnitedHealth Group (NYSE:UNH)UnitedHealth Group Incorporated is a diversified health care and well-being company headquartered in Minnetonka, Minnesota. Its operations are organized primarily through two businesses: UnitedHealthcare, which provides health benefit plans and services, and Optum, which delivers health care services, technology, pharmacy care and data-driven solutions.
UnitedHealthcare serves individuals, employers, government programs and other organizations through products that include employer-sponsored health plans, individual and family coverage, Medicare and Medicaid plans, dental and vision benefits, and related administrative services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in UnitedHealth Group Right Now?Before you consider UnitedHealth Group, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and UnitedHealth Group wasn't on the list.
While UnitedHealth Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
TPG just bought into the exact Optum clinics that derailed UnitedHealth's profits, and management is hours away from reaffirming guidance that could either validate the deal or reopen a wound investors hoped was healing.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
UnitedHealth Group (NYSE:UNH | UNH Price Prediction) stock is down 3% to $388.58 in early Wednesday trading after Bloomberg reported the company sold an interest in part of its Florida WellMed primary-care clinics. The 3% slide comes even as UnitedHealth stock is still up 15% year to date, and it lands hours before management is set to reaffirm full-year 2026 financial guidance at an investor conference, according to UnitedHealth Group.
TPG (NASDAQ:TPG) is the buyer. The Fort Worth alternative asset manager ended Q2 2026 with $326.8 billion in assets under management and $76.2 billion in available capital, and its Capital and Healthcare Partners platforms have been active in senior-care buyouts.
WellMed sits inside Optum Health, the value-based care unit whose stumbles drove UnitedHealth’s ongoing turnaround. The reaction today looks company-specific rather than sector-wide, and that framing matters for anyone reading through from UnitedHealth into the broader managed-care group.
Selling a Piece of the Problem Child Bloomberg reported Tuesday evening that UnitedHealth sold an interest in some of its Optum Health operations in Florida to TPG, centered on WellMed’s senior primary-care clinics. Terms weren’t disclosed, which leaves investors valuing a transaction with no headline dollar figure attached to it.
Chief Financial Officer Wayne DeVeydt told Bloomberg, “We didn’t need the dollars, we have the dollars to invest, but we needed the focus and somebody that could actually work with us locally.” He described the arrangement as a way to grow the clinic footprint faster than UnitedHealth could on its own while it executes a wider reset.
DeVeydt also told the outlet that Optum Health margins will reach 2% this year, ahead of prior expectations, and he guided to 4% next year. That trajectory matters because Optum Health was the source of last year’s disappointing profit and the reason the company replaced its chief executive and other senior leaders.
UnitedHealth reported Optum Health revenue of $23.47 billion in Q2 2026, down 5% year over year (YoY) as the unit shed 700,000 value-based care patients. The WellMed carve-in gives Optum a well-capitalized operating partner and hands TPG a foothold in Medicare-focused primary care during a stretch when the sector’s economics remain contested.
Sector Barely Flinches The Health Care Select Sector SPDR ETF (NYSEARCA:XLV) is down 0.4% to $166.44, a fraction of UnitedHealth’s move and a sign the story isn’t reading as a broader healthcare selloff. UnitedHealth is a top-five weight in the fund at 6.57% of net assets, so a heavier sector drop would be showing up if the news were spilling into the group.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.35% to $763.31, so the broad tape is merely soft. Managed-care peers Elevance Health (NYSE:ELV), Cigna (NYSE:CI), and Humana (NYSE:HUM) aren’t posting a matching drop, which reinforces that today’s move is UnitedHealth-specific.
The tension is philosophical. A turnaround company is selling a slice of the exact division that caused the damage, and readers can view that as discipline or as retreat. Without transaction terms, both interpretations have room to breathe.
What to Watch DeVeydt said UnitedHealth expects to reaffirm its financial guidance at an investor conference hosted by Wells Fargo (NYSE:WFC). That reaffirmation is the more meaningful near-term catalyst, since the July update lifted UnitedHealth’s full-year adjusted EPS guidance to $19.50 to $20 and raised the company’s operating cash flow outlook to $24 billion.
Analyst consensus for UnitedHealth’s full-year 2026 adjusted EPS sits at $19.81, inside management’s raised range, and the 2027 consensus sits at $22.44. A clean reaffirmation would keep those numbers intact, while any hedging language on Optum Health could reopen the debate the WellMed deal is trying to settle.
Investors could look for signs that UnitedHealth’s management ties the WellMed partnership to specific clinic growth targets or Optum margin milestones on stage. Position sizing on one’s UnitedHealth stock exposure may deserve a fresh look given today’s gap between the stock and its sector fund.
Contact [email protected] for any questions or corrections.
UnitedHealth rozšiřuje využití AI v Optum Insight a plánuje v roce 2026 investovat téměř 1,5 miliardy USD. AI prior authorization dosáhla 96% úspěšnosti při prvním schválení a Value Connect snížil náklady na léky o 17 %.
Key Takeaways UnitedHealth is expanding AI across Optum Insight to support growth and develop new revenue streams.AI prior authorization achieved a 96% first-pass approval rate while retaining human review for exceptions.Value Connect helped early customers cut pharmacy costs by 17%, supporting wider adoption of AI solutions. UnitedHealth Group Inc. (UNH - Free Report) is making artificial intelligence a bigger part of its strategy to strengthen Optum Insight’s growth. The company plans to invest nearly $1.5 billion in AI-related initiatives in 2026, with about one-third earmarked for software products and platforms. The spending is supporting a broader shift toward an AI-first software and services model, giving Optum Insight an opportunity to develop new revenue streams while improving healthcare workflows.
The strategy is moving beyond experimentation into commercial products. Optum Insight is expanding AI capabilities across autonomous coding, digital prior authorization, real-time payer-provider interfaces and clinical quality and safety tools. Digital prior authorization is showing early traction, with AI achieving a 96% first-pass approval rate while retaining human review for cases that are not approved. These solutions could strengthen Optum Insight’s value proposition as payers and providers seek to reduce administrative costs.
Value Connect offers another example of AI translating into measurable customer benefits. The platform, embedded within provider workflows and electronic health records, has helped early customers achieve a 17% reduction in pharmacy costs. Demonstrated savings could support wider adoption as healthcare organizations increasingly seek technology that delivers measurable financial and clinical benefits.
The underlying business is also gaining momentum. Optum Insight generated $5.4 billion in second-quarter 2026 revenues, while operating earnings increased 13.6% year over year and margin improved to 25.3%. As AI products move toward broader commercialization, the strategy could provide another growth lever. Converting early customer results into wider adoption and recurring revenue will be key to strengthening Optum Insight’s growth trajectory.
How Are Competitors Faring?Some of UNH’s major competitors in the healthcare service provider space are Humana Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) .
Humana is expanding AI across care management, prior authorization and member engagement to improve efficiency and health outcomes. HUM is also using predictive analytics to identify high-risk members earlier, supporting value-based care while helping manage medical costs and streamline healthcare delivery.
Centene is using AI to strengthen payment integrity and manage rising healthcare costs. CNC’s advanced analytics help detect suspicious claims, identify billing anomalies and improve medical cost management, supporting margins while enhancing oversight across its government-sponsored healthcare programs.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 41.9% over the past six months compared with the industry’s rise of 41.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.48, above the industry average of 16.02. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying 21.2% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
UnitedHealth za šest měsíců vzrostl o 38,8 % díky ústupu tlaku na zdravotní náklady; v 1. pololetí tržby klesly o 2 % na 148,8 mld. USD a medical care ratio spadl na 85,3 %.
Key Takeaways UnitedHealth shares rose 38.8% in six months as medical-cost pressures eased and confidence improved.UnitedHealth's medical care ratio fell to 85.3%, while first-half medical costs declined 2% to $148.8B.UnitedHealth's 2026 EPS estimate is $19.82, up 21.2%, with further growth projected for 2027. Shares of UnitedHealth Group Incorporated (UNH - Free Report) have climbed 38.8% over the past six months, outpacing the industry’s 36.8% gain and the S&P 500’s 12% rise. The rebound reflects improving confidence that UnitedHealth is moving past medical-cost pressures and execution setbacks that weighed heavily on the stock through 2025 and early 2026.
Among major peers, Elevance Health, Inc. (ELV - Free Report) has gained 44.8%, while Humana Inc. (HUM - Free Report) has surged 124.9% over the same period.
6-Month Price Performance – UNH, ELV, HUM, Industry & S&P 500 Image Source: Zacks Investment Research
What is Driving UNH’s Recovery?Medical-cost trends have improved, suggesting pricing, benefit design and cost controls are working. In the first half of 2026, UnitedHealth’s medical care ratio decreased to 85.3% from 87.1% a year earlier. Medical costs also declined 2% to $148.8 billion. The focus now is whether the company can sustain that progress and translate lower cost pressure into stronger earnings through 2027 and beyond.
UnitedHealth is also reducing exposure to weaker-return businesses. The company is pulling back from selected Medicare Advantage and Optum Health markets, which should help limit losses, simplify operations and redirect capital toward areas with better return potential. A leaner footprint could improve profitability and execution.
Optum remains an important source of diversification beyond insurance. Its move toward a more transparent, fee-based pharmacy benefit model could strengthen its competitive position while addressing regulatory concerns around traditional PBM practices. If execution is disciplined, the shift may enhance client appeal without weakening the economics of the business.
The Medicare Advantage backdrop has also improved. In April, CMS finalized an average 2.48% increase in 2027 Medicare Advantage payments, well above the previously proposed 0.09% increase. The rate outlook eases reimbursement concerns and gives insurers greater room to manage benefits, pricing and margins.
Capital returns have also supported sentiment. Through mid-July 2026, UnitedHealth had repurchased $4 billion of stock and remained on track to buy back at least $5 billion for the year. It also paid $4.1 billion in dividends during the first half, underscoring confidence in cash generation.
Beyond the near-term recovery, UnitedHealth still benefits from scale, a broad healthcare platform and a strong position across insurance, pharmacy services and care delivery. Aging demographics and rising healthcare demand continue to provide long-term support.
Prior Authorization Cuts: Opportunity With Some RiskUnitedHealthcare is removing 30% of its remaining prior authorization requirements, including approvals tied to surgeries, diagnostic tests and therapies. The change could improve member satisfaction, ease provider frustration and reduce administrative work across its health plans. Faster access to care may also help retention and strengthen UnitedHealthcare’s competitive standing.
There is a trade-off, however. Fewer authorization checks could increase healthcare utilization and lift medical costs. The move may lower administrative expenses and reduce regulatory scrutiny, but UNH will still need pricing, care management and benefit design to keep any rise in utilization from weighing on margins.
Estimates Point to a Stronger Earnings PathThe Zacks Consensus Estimate for 2026 EPS is pegged at $19.82, indicating 21.2% year-over-year growth. The estimate has received two upward revisions over the past month and no downward changes. Revenues are projected at $446.78 billion, down 0.2%, reflecting UnitedHealth’s greater focus on profitability rather than pure top-line expansion.
For 2027, EPS is expected to rise 13.7% to $22.54. The estimate has seen three upward revisions over the past month, with no downward moves. Revenue is projected to increase 2.6% to $458.33 billion.
UnitedHealth has also topped earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
Is UNH Still Reasonably Valued?The rebound has lifted UnitedHealth’s valuation above the industry average. The stock trades at 18.51X forward earnings, compared with 16.13X for the industry. Still, the multiple remains below UNH’s five-year median of 19.11X, suggesting valuation has not moved beyond its historical range. The stock currently carries a Value Score of B.
For comparison, Elevance now trades at 14.51X forward earnings, while Humana trades at 30.63X.
Image Source: Zacks Investment Research
Wall Street sentiment also remains supportive. Several analysts have recently raised price targets or upgraded the stock. UNH still trades below the average analyst target of $481.52, implying about 20.5% upside. The target range of $380 to $529 shows that views remain divided, but the balance of expectations is still constructive.
How to Play UNH SharesUnitedHealth’s recovery is gaining momentum as medical-cost trends improve and management sharpens its focus on more profitable businesses. Favorable Medicare Advantage reimbursement, strong capital returns and Optum’s diversification add further support. The prior-authorization changes could strengthen member and provider relationships, though higher utilization remains a risk.
Valuation has risen, but the stock still trades below its five-year median multiple and Wall Street’s average price target. With earnings estimates moving higher and operating trends improving, UNH appears to have further upside despite its recent rally. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth zlepšuje výsledky díky nižším zdravotním nákladům; upravený výhled EPS pro rok 2026 zvýšil na 19,50–20 USD. Optum ve 2. čtvrtletí zvýšil provozní zisk o 29 % na 4 mld. USD.
Key Takeaways UnitedHealth is recovering as lower medical costs help drive stronger margins and earnings.Optum's operating income rose 29% to $4 billion in the second quarter on better execution.UnitedHealth raised its 2026 adjusted EPS outlook to $19.50-$20 despite ongoing risks. UnitedHealth Group, Inc. (UNH - Free Report) appears to be making meaningful progress toward recovering from the turbulence that weighed on its performance in 2025. After facing elevated medical costs, unfavorable utilization trends and pressure across government-sponsored businesses, the healthcare giant has entered 2026 with a stronger operating footing. In the first half of 2026, its total revenues rose 1.2% year over year along with 20.5% growth in adjusted earnings per share (EPS).
A key catalyst has been better control over medical expenses. UNH’s medical care ratio declined to 86.7% in the second quarter from 89.4% a year earlier, aided by improved pricing, benefit-design changes, member mix, medical-cost management and favorable prior-period reserve development. The improvement helped UnitedHealthcare’s operating margin expand to 4.6% from 2.4% in the prior-year quarter. Meanwhile, membership declined, particularly in Medicare Advantage, as UNH is currently prioritizing profitable growth over enrollment expansion, a strategy that could support healthier margins over time.
Optum is also contributing to the recovery. The segment benefited from improved operational execution, with operating income rising 29% year over year to $4 billion in the second quarter. Investments in technology, artificial intelligence and care-delivery capabilities are aimed at improving productivity and clinical efficiency, potentially creating additional opportunities for margin expansion.
The stronger results encouraged UnitedHealth to raise its 2026 adjusted EPS outlook to $19.50-$20. Still, elevated medical-cost trends, pressure in Medicaid and commercial benefits and membership declines remain risks. Therefore, sustained medical-cost discipline and continued improvement at Optum will be crucial for making the recovery durable.
How Are Competitors Faring?Some of UNH’s major competitors in the medical space are Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
Humana is focusing on pricing, network management and operating efficiencies to restore margins while navigating elevated medical costs and utilization across its Medicare Advantage business. In the first half of 2026, HUM’s adjusted revenues increased 24.9% year over year and adjusted EPS grew 0.3%.
Elevance is prioritizing medical cost management, operating efficiency and Carelon’s expansion while dealing with elevated medical costs and membership declines in government businesses. In the first half of 2026, operating revenues increased 1.2% year over year, while adjusted EPS declined 3.7%.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 28.7% in the past year compared with the industry’s growth of 24%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.46, above the industry average of 15.99. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying 21.2% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth's (UNH.N) insurance unit said on Tuesday that a broad range of conditions will no longer need prior approval, effective October 1, as it aims to eliminate prior authorization for 30% of healthcare services by the end of this year.
Here are the details:
The reduction spans a broad mix of services across multiple clinical specialties, including cardiology, genetic and laboratory testing, chiropractic care, physical, occupational and speech therapy, orthopedic and musculoskeletal procedures, among others.
The prior authorization requirements are being eliminated across its commercial plans, Medicare Advantage for older adults and individual insurance under the Affordable Care Act, also known as Obamacare, and some other types of plans.
Health insurers have been taking measures to simplify their requirements for prior authorization on medicines and medical services after complaints from patients and doctors over excessive paperwork that can delay or even deny needed care.
The actions are designed to reduce unnecessary paperwork, make information easier to understand and allow patients and care providers more time to focus on care, UnitedHealthcare said.
The company is also reducing administrative requirements for eligible rural hospitals and affiliated providers through a rural prior authorization waiver program scheduled to begin on November 1.
UnitedHealthcare is speeding payments by up to 50% for about 1,400 rural hospitals and Critical Access Hospitals in the third quarter.
Bowie Capital Management ve 2. čtvrtletí koupila novou pozici v UnitedHealth Group za zhruba 91,956 mil. USD. Drží 221 244 akcií, což tvoří 3,9 % portfolia.
Bowie Capital Management LLC acquired a new stake in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 221,244 shares of the healthcare conglomerate’s stock, valued at approximately $91,956,000. UnitedHealth Group makes up 3.9% of Bowie Capital Management LLC’s holdings, making the stock its 10th biggest holding.
A number of other institutional investors have also recently added to or reduced their stakes in UNH. Sarver Vrooman Wealth Advisors acquired a new stake in shares of UnitedHealth Group in the fourth quarter valued at about $25,000. Anfield Capital Management LLC raised its position in shares of UnitedHealth Group by 220.0% during the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock worth $26,000 after purchasing an additional 55 shares during the last quarter. Joseph Group Capital Management acquired a new stake in UnitedHealth Group in the 4th quarter worth about $27,000. Nalls Sherbakoff Group LLC acquired a new position in shares of UnitedHealth Group during the fourth quarter valued at approximately $27,000. Finally, Lifetime Wealth Management P.C. acquired a new stake in shares of UnitedHealth Group in the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 87.86% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have weighed in on UNH shares. UBS Group raised their price objective on UnitedHealth Group from $460.00 to $490.00 and gave the company a “buy” rating in a report on Friday, July 17th. Wells Fargo & Company increased their target price on shares of UnitedHealth Group from $397.00 to $485.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Cantor Fitzgerald restated an “overweight” rating on shares of UnitedHealth Group in a research report on Thursday, June 11th. Zacks Research upgraded shares of UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. Finally, Leerink Partners boosted their target price on UnitedHealth Group from $400.00 to $462.00 and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and a consensus target price of $455.92.
View Our Latest Report on UnitedHealth Group UnitedHealth Group Price Performance NYSE:UNH opened at $390.94 on Monday. UnitedHealth Group Incorporated has a 52 week low of $255.96 and a 52 week high of $461.62. The stock’s fifty day moving average is $413.99 and its two-hundred day moving average is $356.45. The company has a market capitalization of $350.90 billion, a P/E ratio of 25.16, a P/E/G ratio of 1.35 and a beta of 0.62. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.66.
UnitedHealth Group (NYSE:UNH – Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business had revenue of $112.03 billion during the quarter, compared to analysts’ expectations of $110.81 billion. During the same period in the prior year, the business posted $4.08 EPS. The company’s revenue was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Equities analysts expect that UnitedHealth Group Incorporated will post 19.81 EPS for the current year.
UnitedHealth Group Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be issued a $2.32 dividend. The ex-dividend date of this dividend is Monday, September 14th. This represents a $9.28 annualized dividend and a yield of 2.4%. UnitedHealth Group’s dividend payout ratio (DPR) is 59.72%.
UnitedHealth Group News Roundup Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation Insider Buying and Selling In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 500 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total value of $205,000.00. Following the sale, the chief executive officer directly owned 16,497 shares of the company’s stock, valued at approximately $6,763,770. This represents a 2.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.19% of the stock is owned by company insiders.
(Free Report)
UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.
UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.
Recommended Stories Five stocks we like better than UnitedHealth Group VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over
Receive News & Ratings for UnitedHealth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UnitedHealth Group and related companies with MarketBeat.com's FREE daily email newsletter.
Bell & Brown Wealth Advisors ve 2. čtvrtletí otevřela novou pozici v UnitedHealth Group za zhruba 6,07 milionu USD. Drží 14 604 akcií, což tvoří 1,8 % portfolia.
Bell & Brown Wealth Advisors LLC purchased a new position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 14,604 shares of the healthcare conglomerate’s stock, valued at approximately $6,070,000. UnitedHealth Group comprises 1.8% of Bell & Brown Wealth Advisors LLC’s investment portfolio, making the stock its 19th largest position.
A number of other institutional investors and hedge funds have also made changes to their positions in UNH. Northcape Wealth Management LLC bought a new stake in shares of UnitedHealth Group in the 2nd quarter worth about $272,000. Edmond DE Rothschild Holding S.A. purchased a new position in UnitedHealth Group in the second quarter worth about $14,281,000. Uptick Partners LLC purchased a new stake in UnitedHealth Group during the second quarter valued at approximately $210,000. CM Wealth Advisors LLC bought a new stake in shares of UnitedHealth Group in the 2nd quarter valued at approximately $399,000. Finally, Madison Asset Management LLC bought a new position in shares of UnitedHealth Group during the 2nd quarter valued at approximately $17,614,000. 87.86% of the stock is owned by hedge funds and other institutional investors.
Insider Activity at UnitedHealth Group In other news, CEO Patrick Hugh Conway sold 500 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $410.00, for a total value of $205,000.00. Following the completion of the sale, the chief executive officer owned 16,497 shares of the company’s stock, valued at $6,763,770. This trade represents a 2.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.19% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have commented on UNH shares. UBS Group lifted their price objective on shares of UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. raised their target price on shares of UnitedHealth Group from $466.00 to $516.00 and gave the stock an “overweight” rating in a report on Tuesday, July 21st. Morgan Stanley upped their price target on shares of UnitedHealth Group from $468.00 to $529.00 and gave the company an “overweight” rating in a report on Friday, July 17th. KeyCorp raised their price objective on shares of UnitedHealth Group from $400.00 to $475.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Finally, Robert W. Baird raised UnitedHealth Group from an “underperform” rating to a “neutral” rating and upped their target price for the company from $287.00 to $453.00 in a research note on Thursday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $455.92. View Our Latest Stock Analysis on UNH
UnitedHealth Group Trading Up 1.6% Shares of NYSE UNH opened at $390.94 on Friday. The business has a fifty day moving average price of $413.99 and a 200 day moving average price of $355.96. UnitedHealth Group Incorporated has a 1-year low of $255.96 and a 1-year high of $461.62. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.78 and a quick ratio of 0.78. The stock has a market capitalization of $350.90 billion, a P/E ratio of 25.16, a price-to-earnings-growth ratio of 1.36 and a beta of 0.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last announced its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The business had revenue of $112.03 billion during the quarter, compared to the consensus estimate of $110.81 billion. During the same period in the previous year, the company posted $4.08 earnings per share. The firm’s revenue was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Equities research analysts expect that UnitedHealth Group Incorporated will post 19.81 EPS for the current fiscal year.
UnitedHealth Group Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Monday, September 14th will be issued a $2.32 dividend. This represents a $9.28 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s payout ratio is currently 59.72%.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation UnitedHealth Group Company Profile (Free Report)
UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.
UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.
Featured Articles Five stocks we like better than UnitedHealth Group 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit? Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
Receive News & Ratings for UnitedHealth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UnitedHealth Group and related companies with MarketBeat.com's FREE daily email newsletter.
Alpine Woods Capital Investors LLC purchased a new position in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 1,888 shares of the healthcare conglomerate’s stock, valued at approximately $785,000.
A number of other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in UnitedHealth Group by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 91,600,260 shares of the healthcare conglomerate’s stock valued at $30,238,162,000 after purchasing an additional 995,210 shares during the period. BlackRock Inc. raised its holdings in UnitedHealth Group by 4.6% in the second quarter. BlackRock Inc. now owns 76,863,061 shares of the healthcare conglomerate’s stock valued at $31,946,594,000 after acquiring an additional 3,395,530 shares in the last quarter. State Street Corp grew its holdings in UnitedHealth Group by 2.5% during the 4th quarter. State Street Corp now owns 45,232,170 shares of the healthcare conglomerate’s stock worth $14,931,592,000 after acquiring an additional 1,119,834 shares in the last quarter. Capital World Investors lifted its position in UnitedHealth Group by 3.8% in the fourth quarter. Capital World Investors now owns 22,591,042 shares of the healthcare conglomerate’s stock valued at $7,457,723,000 after acquiring an additional 824,120 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its position in UnitedHealth Group by 3.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 18,829,054 shares of the healthcare conglomerate’s stock worth $6,215,660,000 after acquiring an additional 680,077 shares during the period. 87.86% of the stock is owned by hedge funds and other institutional investors.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation Insider Buying and Selling In other news, CEO Patrick Hugh Conway sold 500 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the sale, the chief executive officer directly owned 16,497 shares of the company’s stock, valued at $6,763,770. This represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.19% of the stock is currently owned by corporate insiders. Wall Street Analysts Forecast Growth Several equities analysts have weighed in on UNH shares. UBS Group raised their price target on UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Oppenheimer upped their price objective on shares of UnitedHealth Group from $420.00 to $500.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Weiss Ratings downgraded UnitedHealth Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, July 28th. Mizuho increased their target price on UnitedHealth Group from $470.00 to $493.00 and gave the stock an “outperform” rating in a report on Monday, July 20th. Finally, Piper Sandler set a $477.00 price objective on shares of UnitedHealth Group in a research note on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $455.92.
View Our Latest Stock Analysis on UnitedHealth Group
UnitedHealth Group Stock Up 1.6% Shares of UnitedHealth Group stock opened at $390.94 on Friday. The company has a market cap of $350.90 billion, a P/E ratio of 25.16, a P/E/G ratio of 1.34 and a beta of 0.62. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.66. The stock has a 50-day moving average price of $413.99 and a 200 day moving average price of $355.96. UnitedHealth Group Incorporated has a 1 year low of $255.96 and a 1 year high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last released its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The company had revenue of $112.03 billion during the quarter, compared to the consensus estimate of $110.81 billion. During the same quarter in the prior year, the firm earned $4.08 EPS. The company’s revenue was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, analysts expect that UnitedHealth Group Incorporated will post 19.69 EPS for the current fiscal year.
UnitedHealth Group Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be issued a dividend of $2.32 per share. The ex-dividend date of this dividend is Monday, September 14th. This represents a $9.28 annualized dividend and a dividend yield of 2.4%. UnitedHealth Group’s dividend payout ratio (DPR) is presently 59.72%.
UnitedHealth Group Profile (Free Report)
UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.
UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.
Further Reading Five stocks we like better than UnitedHealth Group Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?
Receive News & Ratings for UnitedHealth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UnitedHealth Group and related companies with MarketBeat.com's FREE daily email newsletter.
UnitedHealth v roce 2026 čeká pokles počtu členů v Medicare Advantage o zhruba 1,1 milionu, protože opouští nerentabilní plány. Zároveň zvýšila výhled upraveného zisku na akcii (EPS) na 19,50–20 USD.
Key Takeaways UnitedHealth expects MA enrollment to fall by 1.1 million members as it exits unprofitable plans.Medicare margins are expected above 3% in 2026 as pricing and benefit changes improve the membership mix.UnitedHealth raised its 2026 adjusted EPS outlook to $19.50-$20 amid improving medical cost trends. UnitedHealth Group Incorporated (UNH - Free Report) is taking a more disciplined approach to Medicare Advantage (MA), with profitability increasingly taking precedence over membership expansion. This shift comes as elevated medical costs continue to challenge the industry and pressure insurers to reassess pricing, benefits and market participation.
UnitedHealthcare expects 2026 MA enrollment to decline by approximately 1.1 million members, reflecting targeted exits from unprofitable plans. However, Medicare margins are now expected to finish the year above 3%. The improvement reflects tighter benefit design, pricing actions and a more favorable membership mix, while the company expects Medicare medical cost trends to come below the initial estimate of near 10%.
Cost-control initiatives are also becoming an important part of the strategy. Network curation, care management, affordability programs and greater use of value-based care are helping contain medical expenses. Favorable claims experience and a lighter respiratory season have provided additional support. UNH’s consolidated medical care ratio improved to 86.7% in the second quarter from 89.4% a year ago. The company raised its 2026 adjusted EPS outlook to $19.50-$20. For 2027, benefit planning remains centered on current cost trends, with adjustments to benefits and selective market participation aimed at maintaining margin stability.
The strategy could place UnitedHealth on a more sustainable MA growth path, even as near-term enrollment remains under pressure. Improving medical cost trends and a gradual recovery in membership could strengthen the economics of UnitedHealth’s MA business. If these trends persist, UNH could emerge from its current reset with a more profitable MA business and a stronger foundation for long-term growth.
How Are Competitors Faring?Some of UNH’s major competitors in the medical space are Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
Humana remains heavily exposed to Medicare Advantage, making medical cost control and benefit optimization critical to its outlook. HUM is focusing on pricing, network management and operating efficiencies to restore margins while navigating membership pressure and elevated utilization across its MA portfolio.
Elevance Health is sharpening its Medicare Advantage strategy by prioritizing profitable growth over broad membership gains. Portfolio repositioning, disciplined plan design and a stronger focus on D-SNP and HMO offerings are improving performance, while care management and favorable claims trends support ELV’s path toward at least a 2% operating margin in 2026.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 25.2% in the past year compared with the industry’s growth of 21.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 17.96, above the industry average of 15.60. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.69 per share, implying 20.4% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aon čeká, že náklady amerických zaměstnavatelů na zdravotní péči v roce 2027 vzrostou o 9,5 % na více než 19 000 USD na zaměstnance. Tahounem jsou vyšší využití péče, chronická onemocnění a drahé léky.
Key Takeaways Aon projects average U.S. employer health-plan costs to top $19,000 per employee in 2027.Medical use, chronic illness, costly claims and prescription drugs are driving health-care spending higher.WTW sees inflation boosting demand, while UNH and CNC are managing medical costs through pricing & controls. Aon plc (AON - Free Report) recently announced that it expects U.S. employer health-care costs to rise 9.5% in 2027, pushing average plan costs above $19,000 per employee. The forecast, based on its Health Value Initiative database, covers more than 1,100 employers, 7.9 million employees and $135 billion of 2026 health-care spending. Aon expects many companies to take steps to soften that increase.
The pressure is broad. Higher use of medical services, more chronic illness and a growing number of expensive claims are lifting spending. Prescription drugs remain another major driver, especially specialty medicines and GLP-1 therapies, as their use expands into cardiovascular disease, sleep apnea and chronic kidney disease. Aon also pointed to more detailed provider documentation and coding, including technology-assisted coding, as a factor that can raise billed charges in some cases.
Employers are already carrying most of the burden. Their average cost rose 8.8% in 2026 to $14,432 per employee, while employee payroll contributions increased 6.4% to $3,130. Aon says employers now fund about 82% of total plan costs, making health benefits a bigger business-planning issue. The report says 2027 costs would extend a long period of healthcare inflation that employers have faced.
Why This Matters Beyond the Benefits BudgetThe size and persistence of the increase are what make Aon’s findings important. The projected rise would mark a fourth straight year of employer health-cost growth close to double digits. Even after employers changed plan designs and used cost controls, total plan costs increased 8.3% in 2026 to $17,562 per employee. The middle 50% of employers saw increases ranging from 5.5% to 11.5%, showing that the pressure is not confined to a small group.
Employees are feeling it too. Their total health spending is expected to reach $5,297 in 2026, including $3,130 in payroll premiums and $2,167 in out-of-pocket costs. Out-of-pocket spending alone rose 10.2%. Across industries, employer cost increases ranged from 6.5% in health care to 9.8% in finance and insurance.
Another year of steep increases can force companies to rethink benefits, hiring and compensation. Employers may raise contributions, change deductibles, narrow provider networks or lean harder on care-management programs. They also have stronger incentives to scrutinize pharmacy spending, network contracts and high-cost claims. In short, medical inflation is becoming a financial-planning problem, not simply a benefits-department problem. That squeeze can also affect workers’ budgets and spending patterns.
What it Means for Companies Like AON, WTW, UNH & CNCFor AON and Willis Towers Watson Public Limited Company (WTW - Free Report) , rising health costs can create more demand for their services. Employers need help redesigning benefits, comparing networks, managing pharmacy costs and using data to identify spending problems. Aon’s Health Solutions generated $818 million of second-quarter 2026 revenues and 5% organic growth. Its response includes tools such as Network Analyzer, designed to examine network performance, utilization and cost drivers. WTW, which currently has a Zacks Rank #2 (Buy), is seeing the same tailwind: its Health business posted 8% organic growth in the second quarter, and management specifically cited high health-care inflation as a demand driver for its specialty solutions.
The Zacks Consensus Estimate for Willis Towers Watson’s 2026 and 2027 EPS are currently pegged at $19.77 and $22.57, signaling 15.8% and 14.1% year-over-year growth, respectively. Both witnessed nine upward revisions over the past month, against no movement in the opposite direction. WTW beat earnings estimates in each of the past four quarters with an average surprise of 3.9%.
While higher costs can support demand for AON and WTW’s services, the equation is different for health insurers. UnitedHealth Group Incorporated (UNH - Free Report) has already said commercial medical costs remain stubbornly high and above expectations. When UnitedHealthcare bears the claims risk, faster utilization and drug inflation can push up the medical care ratio unless premiums keep pace. The company is responding through benefit design, care-management models, network curation and selective market participation.
Also, UNH has an important cushion: its self-funded commercial business is much larger than its risk-based business. It ended the second quarter with around 22.3 million commercial fee-based members versus only 7.7 million commercial risk members. Meanwhile, improving cost trends and management actions helped lower UNH’s medical care ratio to 86.7% in the second quarter from 89.4% a year ago.
UnitedHealth currently sports a Zacks Rank #1 (Strong Buy). The consensus estimate for its 2026 and 2027 EPS are currently pegged at $19.69 and $22.43, indicating 20.4% and 13.9% year-over-year increases, respectively. Both estimates have seen two upward revisions over the past month, with no cuts.UNH beat earnings estimates in each of the past four quarters with an average surprise of 12.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The impact is different for insurers with less exposure to employer-sponsored commercial plans and greater dependence on government programs.
Centene Corporation (CNC - Free Report) is one such company with less direct exposure to employer-sponsored coverage because its commercial business is primarily concentrated in the ACA Marketplace. Still, many of the same medical-cost pressures apply. Centene nevertheless improved its second-quarter commercial health-benefits ratio to 79.2% from 90.6% a year ago, helped by better pricing and risk transfer. Management is already taking a state-by-state approach to 2027 Marketplace pricing, with margin restoration remaining the priority rather than pursuing membership growth at any cost. Its Medicaid HBR was 93.9% in the second quarter, with management citing progress in medical-cost management.
Centene also currently sports a Zacks Rank #1. The consensus mark for its 2026 and 2027 EPS is currently pegged at $4.89 and $5.35, indicating 135.1% and 9.4% year-over-year jumps, respectively. These estimates witnessed nine upward revisions each over the past month, against no downward movement. CNC beat earnings estimates in each of the past four quarters, with an average surprise of 151.3%.
Final WordsOverall, persistent health-care inflation should continue to support demand for cost-management, benefits consulting and data-driven solutions, benefiting firms such as WTW. At the same time, health insurers will need disciplined pricing, tighter medical-cost controls and careful market participation to protect margins. UNH and CNC are already showing signs of improvement in managing medical expenses and pricing their businesses appropriately. Against this backdrop, WTW, UNH and CNC remain attractive names to add to your portfolio, with all three currently carrying favorable ratings.
UnitedHealth zlepšila medical cost ratio na 86,7 % ve 2. čtvrtletí 2026 z 89,4 % před rokem, což zmírnilo tlak na marže. Odhady EPS pro roky 2026 i 2027 byly za poslední měsíc pětkrát zvýšeny.
Key Takeaways UnitedHealth's medical care ratio improved, easing pressure from elevated healthcare utilization.EPS estimates for 2026 and 2027 rose five times in the past month, with no downward revisions.UNH's capital returns remain strong, with dividend yield above the industry level. UnitedHealth Group Incorporated (UNH - Free Report) , one of the nation’s leading healthcare plan providers, is currently trading at 18.39X forward 12-month earnings, below its five-year median P/E of 19.14X. While this suggests a modest discount to its historical valuation, the stock still trades above the Zacks Medical – HMOs industry average of 16X, indicating that investors continue to pay a premium for UnitedHealth’s scale, diversified operations and earnings potential. The stock currently carries a Value Score of B.
That raises an important question: Does UNH deserve that premium as it works through medical costs, regulatory pressure and shifting market conditions? Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) trade at 29.59X and 13.97X forward earnings, respectively, highlighting the wide valuation gap within the managed care group.
Image Source: Zacks Investment Research
UNH Is Having a Good YearUnitedHealth shares have gained 19.3% year to date, ahead of the S&P 500’s 12.6% advance but slightly behind the industry’s 20.3% increase. Performance among major peers has been mixed. Humana has surged 49.1%, while Elevance has gained 13.6%.
YTD Price Performance – UNH, HUM, ELV, Industry & S&P 500 Image Source: Zacks Investment Research
Despite the rally, Wall Street sees more room to run. The average analyst price target stands at $481.52, implying about a 21.7% upside from current levels. Targets range from $380 to $529, showing differing views on its recovery.
Lower MCR Offers a Key ReliefOne of the biggest reasons investors are warming to the stock is the improvement in medical costs. UnitedHealth’s adjusted medical care ratio improved to 86.7% in the second quarter of 2026 from 89.4% a year earlier. Medical costs also declined to $75.4 billion from $78.6 billion.
The improvement is important as elevated utilization, particularly among Medicare Advantage members, has pressured margins across the managed care industry over the last few years. Better pricing, disciplined benefit design and cost management suggest those pressures may be easing for UNH. Investors now want to see whether lower medical costs can be sustained and support earnings growth through 2027 and beyond.
Estimate Revisions Are Trending HigherThe Zacks Consensus Estimate for 2026 EPS is now pegged at $19.69, indicating 20.4% year-over-year growth. Analysts have raised the estimate five times over the past month, with no downward revisions. The consensus estimate for revenues is pegged at $446.85 billion, implying a 0.2% decline from a year ago.
For 2027, EPS is now projected to grow to $22.42, marking a 13.8% improvement. It has also seen five upward estimate revisions in the past month, against no downward movements. Revenues are pegged at $457.52 billion, indicating 2.4% growth from a year ago.
The company has also beaten earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
Growth Drivers Remain IntactUnitedHealth still has several advantages working in its favor. Its scale, broad healthcare platform and large data resources give it a strong position across insurance, pharmacy services and healthcare delivery. An aging population, higher chronic disease rates and rising demand for healthcare should provide long-term support for the business.
Optum remains an important part of that story, helping diversify earnings beyond the insurance operation. The company is also changing its pharmacy benefit manager model toward a more transparent, fee-based structure. If executed well, the shift could strengthen Optum’s competitive position while addressing concerns about traditional PBM practices.
Capital Returns Add to the AppealUnitedHealth also continues to generate significant cash and return it to shareholders. The company returned more than $13 billion through dividends and share repurchases in 2025. Through mid-July 2026, it had repurchased $4 billion of stock and remained on track to buy back at least $5 billion for the year. It also paid $4.1 billion in dividends during the first half of 2026.
The stock’s 2.36% dividend yield is above the industry average of 2.02%, adding to its appeal as the recovery develops.
Risks to Keep an Eye OnThe turnaround is not without risks. Regulatory scrutiny remains a major concern, with investigations involving Medicare billing practices and parts of the Optum business potentially increasing compliance costs and headline pressure. Also, the Internal Revenue Service is scrutinizing UnitedHealth’s internal transactions involving UnitedHealthcare and Optum over potential tax savings, adding regulatory risk and uncertainty over possible additional taxes or penalties.
Although medical costs improved during the second quarter, it remains another key variable. If utilization, especially in Medicare Advantage, rises faster than pricing can offset it, margin improvement could stall.
Membership trends also deserve attention. UnitedHealth expects total medical membership to fall to 46.945-47.495 million in 2026 from nearly 49.760 million in 2025. Growth in commercial fee-based membership may offset some of that decline, but the shift remains an important part of the outlook.
The Bottom LineUnitedHealth’s improving medical care ratio, upward earnings estimate revisions and strong capital returns point to a healthier outlook after a challenging period. While regulatory scrutiny, membership declines and the risk of renewed medical cost pressure remain concerns, the company’s improving operations under CEO Stephen J. Hemsley and long-term growth drivers provide a solid foundation for recovery.
With shares trading below their five-year median P/E and Wall Street seeing further upside, the risk-reward profile remains favorable. UnitedHealth currently carries a Zacks Rank #2 (Buy), supporting a constructive view of the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group snížila ve 2. čtvrtletí poměr nákladů na zdravotní péči na 86,7 % z 89,4 % a provozní zisk vzrostl o 55 %. Firma zároveň zvýšila výhled upraveného EPS pro rok 2026.
Key Takeaways UNH's MCR fell to 86.7%, helping operating earnings rise 55% and lifting 2026 EPS guidance.Lower Medicare costs and value-based care are supporting UNH's cost-control efforts.$860 million in favorable development and rising commercial costs could challenge the recovery. UnitedHealth Group Incorporated’s (UNH - Free Report) second-quarter results show that its earnings performance is improving. The medical care ratio (MCR) fell to 86.7% from 89.4% a year ago, meaning the company spent less of its premium revenues on medical care and retained more for profits. This helped operating earnings rise 55%. UNH also raised its 2026 adjusted EPS guidance, reflecting confidence in its earnings recovery.
The trend is encouraging, particularly in Medicare. Medical costs are running below UNH’s original expectations, aided by better benefit planning, care management and changes in provider networks. OptumHealth is also making progress as it focuses more on value-based care and controls unnecessary medical spending. These trends suggest that the company’s cost-control efforts are beginning to show results.
Still, the 86.7% MCR may not fully reflect UNH’s underlying medical-cost trend. The quarter included $860 million of favorable prior-period medical development. At the same time, commercial medical costs are increasing at a rate exceeding 11%, caused by higher provider billing and coding intensity and specialty drug costs. This could keep pressure on commercial margins for longer.
UNH’s earnings rebound looks encouraging, but its durability remains the key issue. The company’s 2027 pricing and benefit decisions will be an important test. If the company can maintain pricing growth in line with rising medical costs, margin expansion could drive further earnings growth. Otherwise, sustained medical-cost pressure may constrain future earnings growth.
How Are UNH's Peers Positioned?UnitedHealth isn't alone; peers from the Medical space, including Elevance Health, Inc. (ELV - Free Report) and CVS Health Corporation (CVS - Free Report) , are also navigating changing medical cost trends.
Elevance Health’s second-quarter benefit expense ratio was 89.7%, up 80 basis points year over year, mainly due to higher medical costs in its government businesses. Still, ELV raised its 2026 adjusted EPS guidance to at least $27. This shows Elevance is using pricing and cost controls to protect margins.
CVS Health is showing encouraging cost-control trends. Its Aetna business benefited from lower medical costs in the second quarter, helping the company deliver strong earnings beat and raise its 2026 adjusted EPS guidance to $7.90-$8.10. However, CVS faces uncertainty heading into 2027 due to ongoing PBM and 340B-related pressures.
UNH’sPrice Performance, Valuation & EstimatesShares of UnitedHealth have risen 47.9% in the past 12 months compared with the industry’s 41% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, UNH trades at a forward price-to-earnings ratio of 18.83X compared with the industry average of 16.48X. UNH carries a Value Scoreof B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.69 per share, implying a 20.4% increase from the year-ago period’s level.
Image Source: Zacks Investment Research
UNH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bay Colony Advisory Group Inc d b a Bay Colony Advisors ve 2. čtvrtletí snížila podíl v UnitedHealth Group o 64,9 % na 1 646 akcií poté, co během období prodala 3 037 akcií. Generální ředitel Patrick Hugh Conway mezitím prodal 500 akcií za 410 USD za kus, celkem za 205 000 USD.
Bay Colony Advisory Group Inc d b a Bay Colony Advisors cut its holdings in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 64.9% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 1,646 shares of the healthcare conglomerate’s stock after selling 3,037 shares during the period. Bay Colony Advisory Group Inc d b a Bay Colony Advisors’ holdings in UnitedHealth Group were worth $684,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also made changes to their positions in UNH. Vanguard Group Inc. grew its position in shares of UnitedHealth Group by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 91,600,260 shares of the healthcare conglomerate’s stock valued at $30,238,162,000 after purchasing an additional 995,210 shares during the period. State Street Corp increased its stake in shares of UnitedHealth Group by 2.5% in the 4th quarter. State Street Corp now owns 45,232,170 shares of the healthcare conglomerate’s stock worth $14,931,592,000 after acquiring an additional 1,119,834 shares during the last quarter. Capital World Investors raised its stake in UnitedHealth Group by 3.8% during the fourth quarter. Capital World Investors now owns 22,591,042 shares of the healthcare conglomerate’s stock worth $7,457,723,000 after purchasing an additional 824,120 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in UnitedHealth Group by 3.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 18,829,054 shares of the healthcare conglomerate’s stock valued at $6,215,660,000 after acquiring an additional 680,077 shares during the last quarter. Finally, Capital International Investors lifted its stake in shares of UnitedHealth Group by 6.6% in the 4th quarter. Capital International Investors now owns 18,655,111 shares of the healthcare conglomerate’s stock valued at $6,158,734,000 after purchasing an additional 1,155,162 shares during the last quarter. 87.86% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades UNH has been the topic of several recent analyst reports. HC Wainwright set a $492.00 price objective on shares of UnitedHealth Group in a report on Wednesday, May 27th. Zacks Research upgraded UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. DA Davidson set a $512.00 target price on UnitedHealth Group in a report on Tuesday, July 21st. Robert W. Baird upgraded shares of UnitedHealth Group from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $287.00 to $453.00 in a research note on Thursday, July 16th. Finally, Royal Bank Of Canada upped their target price on shares of UnitedHealth Group from $463.00 to $478.00 and gave the stock an “outperform” rating in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $455.92.
Get Our Latest Stock Analysis on UnitedHealth Group
Insider Buying and Selling at UnitedHealth Group In other news, CEO Patrick Hugh Conway sold 500 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the transaction, the chief executive officer directly owned 16,497 shares in the company, valued at $6,763,770. The trade was a 2.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.19% of the stock is currently owned by insiders.
UnitedHealth Group Trading Down 1.8% NYSE:UNH opened at $401.56 on Wednesday. The company has a market capitalization of $364.67 billion, a PE ratio of 25.84, a P/E/G ratio of 1.42 and a beta of 0.62. The stock’s 50 day moving average price is $415.13 and its 200 day moving average price is $351.84. The company has a quick ratio of 0.80, a current ratio of 0.78 and a debt-to-equity ratio of 0.66. UnitedHealth Group Incorporated has a 52-week low of $253.67 and a 52-week high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The company had revenue of $112.03 billion for the quarter, compared to the consensus estimate of $110.81 billion. During the same period last year, the firm posted $4.08 EPS. UnitedHealth Group’s revenue for the quarter was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. On average, research analysts anticipate that UnitedHealth Group Incorporated will post 19.69 EPS for the current year.
UnitedHealth Group Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Monday, June 15th were given a $2.32 dividend. This is a positive change from UnitedHealth Group’s previous quarterly dividend of $2.21. The ex-dividend date was Monday, June 15th. This represents a $9.28 dividend on an annualized basis and a yield of 2.3%. UnitedHealth Group’s payout ratio is 59.72%.
UnitedHealth Group Profile (Free Report)
UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.
UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.
See Also Five stocks we like better than UnitedHealth Group Atlassian Just Pulled Off the Software Comeback Wall Street Wanted AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be NVIDIA’s Rally Sets Up a Bigger Test Ahead of Earnings Apple’s Next iPhone Could Test How Much Pricing Power Is Left
Receive News & Ratings for UnitedHealth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UnitedHealth Group and related companies with MarketBeat.com's FREE daily email newsletter.
UnitedHealth zvýšil výhled upraveného EPS na 19,50 až 20 USD pro rok 2026 a schválil zpětný odkup akcií v objemu alespoň 5 miliard USD. Akcie přesto po zveřejnění výsledků klesly o 3,43 %.
UnitedHealth Group (NYSE: UNH | UNH Price Prediction) reported Q2 2026 results on July 16, and the numbers cleared even the higher end of Wall Street’s expectations. But the stock has slid 3.43% since, leaving some investors to question whether or not it remains a buy.
On Tuesday shares traded around $408.86, up nearly 22% year to date and almost 70% over the past year. Meanwhile, KeyBanc has pushed its price target to $500 from $475, while UBS moved to $490 from $460. Here’s what investors keeping an eye on the stock need to know.
Margins Do the Heavy Lifting The real story sits in the medical care ratio. It came in at 86.7%, a 270 basis point improvement from a year ago, aided by $860 million in net favorable prior period reserve development. That flowed straight through to operating income of $7.99 billion, up 55.17% year over year. UnitedHealthcare’s operating margin expanded to 4.6% from 2.4%, and Optum tacked on 160 basis points to hit 6.2%. I liked how clean the profitability recovery looked given the mess late 2025 left behind.
Membership Still Shrinking The offset is volume. Medicare Advantage membership has contracted by 965,000 since year-end 2025, and Optum Health revenue fell 5% year over year on roughly 700,000 fewer value-based care patients. Optum Rx adjusted scripts slid to 387 million from 414 million. Much of this is deliberate exit from unprofitable contracts, but you’ll want to see when the attrition levels off.
Guidance Gets a Meaningful Bump Key figures for Q2 2026 and the raised outlook:
EPS: $6.38 Revenue: $112.03 billion, up 0.4% YoY Net Income: $5.48 billion, up 61.01% YoY Operating Cash Flow: $11.1 billion (1.9x net income) 2026 Adjusted EPS Guide: $19.50 to $20, raised from a prior floor above $17.75 2026 Buyback: at least $5 billion, doubled from ~$2.5 billion; $4 billion already executed through mid-July The doubled repurchase authorization is the quiet flex here. Management doesn’t back that up unless they’re confident in the cash conversion trajectory.
Hemsley Keeps It Sober CEO Stephen Hemsley framed it plainly, saying “Our results and outlook reflect the continuing progress in our work to simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people.” KeyBanc’s Matthew Gillmor was more pointed, noting the quarter “topped bullish expectations” and flagging a path to roughly $30 in EPS sooner than expected.
Watch the Commercial Repricing KeyBanc attributed the muted immediate reaction to “elevated investor expectations and higher costs within commercial.” That’s the piece I’d track next. Consensus target now sits at $471.80, implying about 11% upside, with 22 Buy ratings against one Sell rating. If MCR holds through the back half, the $20 EPS ceiling starts looking conservative.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UnitedHealth Group didn't make the cut. Grab the names FREE today.
UnitedHealth se po loňském výprodeji výrazně zotavil a nedávno se dotkl 420 USD. Zlepšení táhne nižší medical care ratio a obnovení ziskovosti po růstu nákladů.
Berkshire Hathaway is known for its astute investing acumen. The conglomerate built by Warren Buffett, now transitioning under Greg Abel, has made some fantastic investing decisions over the last few decades. Its purchase and then recent sell of UnitedHealth Group (UNH +2.67%) stock was not one of them.
While we do not know the exact price Berkshire paid for its investment, UnitedHealth Group averaged around $380 in the second quarter of 2025, when shares were bought, and less than $300 in Q1 of this year, when the trade was exited. Today, the stock has rebounded significantly amid improving profitability in the health insurance sector and the government's unexpected adjustment to Medicare Advantage funding, hitting $420 recently. Part of Buffett and Abel's whiff on UnitedHealth Group may simply have been bad timing ahead of this unexpected funding increase.
Is UnitedHealth Group stock a buy after rallying back to over $400 in the second quarter?
Today's Change
(
2.67
%) $
11.15
Current Price
$
428.79
Insurance cost control To understand why UnitedHealth stock is rallying, we need to first look at why it collapsed in 2025. In 2024 and 2025, health insurers in the United States experienced unexpected increases in medical costs, which drove up the all-important medical care ratio for UnitedHealth Group.
This ratio measures the percentage of insurance premiums spent on claims in a period. For a health insurance provider like UnitedHealth, the lower this figure, the better. In 2025, UnitedHealth's medical loss ratio was 88.9%, up from 85.5% in 2024, leading to a collapse in operating earnings from $32 billion to $19 billion.
Now, in 2026, UnitedHealth has shored up its insurance pricing through price increases and the exiting of unprofitable sectors. Its medical care ratio is beginning to recover, hitting 86.7% in the second quarter. For all of 2026, it is guiding to a medical care ratio of 88%, aiming to beat this figure. As this figure normalizes, UnitedHealth Group's profitability should start to recover.
Image source: Getty Images.
Inflation-driven revenue growth Optimally balancing costs is the one key input for health insurers to ride the wave of healthcare cost inflation in the U.S. Spending on healthcare has grown faster than the country's overall economy for decades, driven by an aging population and a greater focus on health outcomes.
For insurers that want to put an umbrella over the entire sector and earn a small profit margin on total healthcare spending, this healthcare inflation is a secular tailwind for overall premium revenue. This is why UnitedHealth Group's revenue has increased by 150% over the last 10 years. As long as these healthcare spending trends continue, I would expect a similar rate of growth in the years ahead.
UNH Net Income (TTM) data by YCharts. TTM = trailing 12 months.
Is UnitedHealth stock a buy? After rebounding in the last few months, UnitedHealth Group stock now trades at a market cap of $380 billion. This does not look overly cheap compared to its trailing net income of $14.9 billion, which gives it a trailing price-to-earnings (P/E) ratio of 25.5.
However, this understates UnitedHealth Group's future earnings power if it can keep riding the healthcare inflation tailwind (driving consistent revenue growth) and continue its recovery in the medical care ratio. At its peak, UnitedHealth Group generated net income well above $20 billion. At a higher revenue level, the company should be able to achieve a net income of $25 billion to $30 billion within the next few years.
Compared to the current market cap, the net income of $25 billion is a cheap-looking forward P/E ratio of 15. Plus, management is now repurchasing stock using excess cash flow, with guidance to return at least $5 billion to shareholders this fiscal year.
Implementing a reduction in shares outstanding alongside a profit recovery should lead to meaningful earnings-per-share (EPS) gains over the next five years, making UnitedHealth Group a cheap insurance stock for investors today.
Key Takeaways UNH raised its 2026 EPS outlook after second-quarter earnings and revenues topped consensus estimates. UnitedHealth improved its medical benefit ratio, but Medicaid pressure and enrollment declines remain risks. ETFs like VHT provide diversified healthcare exposure with meaningful UNH holdings. Shares of UnitedHealth Group Incorporated (UNH - Free Report) touched a new 52-week high on July 16, following its upbeat second-quarter release, before experiencing a modest pullback in the following days. The stock has lost 1.7% since July 17.
This sell-off for America’s largest medical insurer came despite its solid headline numbers, as short-term traders earned profits following the stock's strong run-up into the release.
For long-term investors, such temporary dips in high-quality industry leaders often open up compelling entry points, particularly when backed by solid operational fundamentals. The company’s raised profit outlook for the full year may further encourage them to do so.
However, membership losses due to rising healthcare costs and continued margin pressure at its Medicaid business, thanks to major funding cuts by the U.S. government in Medicaid funding, remain some major headwinds for this stock.
Against this backdrop, diversified healthcare exchange-traded funds (ETFs) offer a strategic alternative. By holding funds with prominent UNH allocations alongside heavyweights across pharmaceuticals, biotech, and medical technology, investors can capture UNH's operational upside while cushioning their portfolios against single-stock Medicaid headwinds.
Before exploring the top ETFs, let's take a closer look at UnitedHealth's second-quarter results and analyst reactions to better understand the current healthcare sector.
A Brief Analysis of UNH’s Q2 ResultsUnitedHealth’s fourth-quarter adjusted earnings per share (EPS) of $6.38 beat the Zacks Consensus Estimate by 1.4%, while its revenues surpassed the consensus mark by 1.7%.
UnitedHealth’s medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — improved from 89.4% in the second quarter of 2025 to 86.7%. The improvement was a result of benefit design and pricing discipline, member mix and medical cost management initiatives.
However, its operating cost ratio of 12.7% deteriorated year over year, owing to incremental investments in technology, processes and people to improve care delivery and customer experiences and advance community health.
As of July 2026, UNH’s OptumHealth reached nearly 90% of U.S. counties, conducting approximately 2.5 million rural patient home visits annually. The insurer aims to expand these programs across its OptumHealth footprint by the end of 2026.
Patient experience in UNH’s care delivery sites went up approximately 5% year over year during the second quarter, whereas patient access expanded by nearly 200,000 more patient-facing hours.
UNH expects to complete total share repurchases of at least $5 billion in 2026, higher than its initial guidance of $2.5 billion.
The company also raised its earnings expectation for 2026 to the range of $19.50-$20.00 per share from the prior outlook of $17.75.
Although its membership retention was better than previously anticipated, UNH expects its 2026 Medicare Advantage enrollment to decline approximately 1.1 million.
Analysts’ ReactionFollowing UNH’s second-quarter results, Morgan Stanley raised the stock’s price targets from $468.00 to $529.00. In a similar move, UBS Group increased its price target on shares of UnitedHealth Group from $460.00 to $490.00 (as cited in MarketBeat).
UNH-Heavy ETFs to WatchiShares U.S. Healthcare Providers ETF (IHF - Free Report)
This fund, with net assets worth $1.21 billion, provides exposure to 59 U.S. companies that provide health insurance, diagnostics, and specialized treatment services. Of these, UnitedHealth Group takes the first spot, accounting for a 21.79% share. CVS Health (CVS - Free Report) (15.14%) and Elevance Health (6.84%) hold the second and third positions in this fund, respectively.
IHF has gained 23.6% over the past six months and charges 38 basis points (bps) in fees.
Health Care Select Sector SPDR Fund (XLV - Free Report)
This fund, with assets under management worth $42.54 billion, provides exposure to 60 companies from pharmaceuticals; health care equipment and supplies, health care providers and services, biotechnology; life sciences tools and services, and health care technology industries. Of these, UnitedHealth Group takes the fourth spot, accounting for a 6.59% share. Pharma giants Eli Lily (LLY - Free Report) (16.08%), Johnson & Johnson (JNJ - Free Report) (10.70%) and AbbVie (ABBV - Free Report) (7.78%) hold the top three spots in this fund.
XLV has surged 5.4% over the past six months and charges 8 bps in fees.
iShares U.S. Healthcare ETF (IYH - Free Report)
This fund, with net assets worth $3.37 billion, provides exposure to 100 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies. Of these, UnitedHealth Group takes the fourth spot, accounting for a 6.25% share. LLY (15.71%), JNJ (10.44%) and ABBV (7.55%) hold the top three spots in this fund.
IYH has risen 5.5% over the past six months and charges 38 bps in fees.
Vanguard Health Care ETF (VHT - Free Report)
With net assets of $17.8 billion, this fund provides exposure to 423 companies engaged in health care equipment manufacturing, health care services, and the research, development, and marketing of pharmaceuticals and biotechnology products. Of these, UnitedHealth Group takes the fourth spot, accounting for a 5.55% share. LLY (14.16%), JNJ (8.87%) and ABBV (6.54%) hold the top three spots in this fund.
VHT has rallied 6.3% over the past six months and charges 9 bps in fees.
UnitedHealth ve 2. čtvrtletí překonal odhady tržeb i upraveného EPS a zvýšil celoroční výhled upraveného EPS na 19,50 až 20 USD. Pomohly nižší náklady na péči a lepší provozní efektivita.
UnitedHealth Group (UNH +1.98%) has been one of the hottest healthcare stocks over the past year, rising nearly 50%. The leading health insurer has been posting improved quarterly results, its medical expenses have been declining, and the outlook for the stock has become much stronger than it has been in the past.
Given the momentum and the stronger quarter results, could the healthcare stock be headed for $500 -- a level it hasn't been at since early last year?
Image source: Getty Images.
UnitedHealth posts solid numbers in Q2 Last week, UnitedHealth released its second-quarter results for the period ending June 30, which were impressive. Revenue of $112 billion came in above analyst projections of $110.9 billion, and its adjusted earnings per share (EPS) of $6.38 was also well above Wall Street estimates of $4.90.
The efforts it has made to restructure its business and exit unprofitable contracts have yielded better results for the health insurer. The company also says it's been using artificial intelligence to improve accuracy and speed up some of its processes. Its medical benefits ratio for the quarter was 86.7%, which was a fair bit lower than analyst estimates of 88.5%. The ratio shows how high its medical expenses are relative to the premiums it collects, and as that percentage declines, it's a good sign that the business is becoming more efficient.
In light of the progress and strong results, the company also upgraded its full-year guidance, now projecting adjusted EPS between $19.50 to $20, a sizable increase from the $18.25 it previously forecast.
Today's Change
(
1.98
%) $
8.33
Current Price
$
429.88
Can UnitedHealth stock get back to $500? For UnitedHealth stock to hit $500, it would need to rise another 19% from Monday's closing price of $421.55. That isn't unrealistic given how well the business has been doing of late, especially with it also raising its guidance. The company's turnaround efforts have been going well, and with UnitedHealth in a much stronger place, the stock looks poised for even greater gains.
Currently, it's trading at 23 times its estimated future earnings, which are based on analyst estimates. But with an improved outlook, those estimates could rise, and UnitedHealth's valuation may look even more attractive in the near future. For long-term investors, it looks safe to buy this leading healthcare stock again, as it could not only hit $500 but, in the long run, soar even higher.
UnitedHealth uvedl, že AI nyní řídí všechny funkce firmy a pomáhá zrychlit schvalování i zpracování pojistných nároků. Ve 2. čtvrtletí vzrostl provozní zisk o 55 % meziročně.
Every claim UnitedHealth processes, every prior authorization it reviews and every patient interaction it handles now runs through artificial intelligence (AI). The company is turning that internal overhaul into a commercial product line. “Virtually everything that we do, we see it basically as the operating infrastructure of the future,” Chairman and CEO Stephen Hemsley said Wednesday (July 15) on the company’s second-quarter 2026 earnings call. “It really is occurring across the spectrum of our businesses.”
The results are showing up in the numbers. AI-powered prior authorization is achieving a 96% first-pass approval rate. The company committed this quarter to eliminating 30% of prior authorization volume by year-end and nearly two-thirds of prior authorization requirements for pediatric care. Those efficiencies are flowing straight to the bottom line, with second-quarter operating earnings up 55% year over year.
Where AI Is Doing the Work At Optum Health, which delivers care directly to 20 million patients, ambient listening AI tools are available to 70% of employed clinicians and are on track to reach 90% by year end. The technology transcribes patient encounters in real time, removing the documentation burden that drives clinician burnout. Optum CEO Patrick Conway said during the call that the tool has produced a 90% reduction in cognitive burnout among clinicians who use it.
Conway also noted that AI is helping nurses summarize complex patient cases 40% faster. Enhanced care transition support has driven a 10% reduction in hospitalizations in the Western and Southern regions since late last year. Home health pilots have cut readmissions and reduced skilled nursing facility stays.
In claims processing, complex cases that once required manual review are now processed automatically and with higher accuracy. “Very complex claims that we never before thought we would be able to automate, we’re able to automate those and process those with higher accuracy,” said Tim Noel, CEO of UnitedHealthcare. Patient-facing hours expanded by nearly 200,000 in the first half of the year as AI-assisted scheduling cut wait times for specialist appointments.
Selling the Playbook to the Rest of the Industry Optum Insight is converting those internal tools into commercial products sold to health systems and payers outside UnitedHealth. About a third of Optum Insight’s technology investment this year is going toward that commercialization effort.
A digital prior authorization product launched last quarter under the Optum Real branch has processed roughly half a million prior authorizations and saved 69,000 administrative hours for external clients. Value Connect, an AI insights platform embedded directly in provider electronic health records, is showing a 17% reduction in pharmacy costs in early client deployments.
Hemsley said every internal function, including HR, finance, legal and clinical operations, is being rebuilt around AI. The efficiency gains from that work will become the product Optum Insight sells externally. About a third of Optum Insight’s investment this year is going toward commercializing internal use cases for outside clients. “This is the beginning,” Hemsley said, “but it will have compounding effects as we make these investments.”
What Else Stood Out UnitedHealth committed to processing 80% of prior authorizations in real time by end of 2027, eliminating most of the back-and-forth between health plans and providers that currently delays care and drives administrative cost on both sides. Commercial insurance cost trends are running modestly above 11%, driven partly by an arbitration process under the No Surprises Act that UnitedHealth says is being exploited. Roughly 60% of all arbitration cases are brought by just five entities, and average payouts when arbitrators side with providers now run 11 times what Medicare would pay. Medicare Advantage cost trends are coming in below original planning assumptions, driven by benefit design changes and network adjustments. Full-year Medicare margins are now expected to finish above 3%. Optum Health now reaches nearly 90% of U.S. counties and conducts approximately 2.5 million rural patient home visits annually, with plans to expand those programs across the full Optum Health footprint by year-end. Topline Results and Outlook UnitedHealth reported second-quarter adjusted earnings per share of $6.38, compared with $4.08 in the prior year. Total revenues were $112 billion, largely flat year over year. Operating earnings of $8 billion grew 55% year over year. The medical care ratio was 86.7%, including $860 million of net favorable prior period medical development, compared to 89.4% in the second quarter of 2025.
Operating cash flows were approximately $11 billion, or 1.9 times net income. The debt-to-capital ratio fell to 41.2%, down from 44.1% a year ago. The company closed its acquisition of Alegeus Technologies on July 2.
UnitedHealth Group (UNH - Free Report) reported $112.03 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 0.4%. EPS of $6.38 for the same period compares to $4.08 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $110.12 billion, representing a surprise of +1.74%. The company delivered an EPS surprise of +29.15%, with the consensus EPS estimate being $4.94.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how UnitedHealth performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Statistics - Medical Care Ratio: 86.7% versus 88.5% estimated by seven analysts on average.UnitedHealthcare Customer Profile - People Served - Total Commercial - Domestic: 29.92 million versus the five-analyst average estimate of 29.53 million.UnitedHealthcare Customer Profile - People Served - Commercial - Domestic - Risk-based: 7.66 million versus 7.26 million estimated by five analysts on average.UnitedHealthcare Customer Profile - People Served - Commercial - Domestic - Fee-based: 22.27 million versus 22.27 million estimated by five analysts on average.Revenues- Investment and other income: $1.22 billion versus the seven-analyst average estimate of $1.03 billion. The reported number represents a year-over-year change of +10.4%.Revenues- Products: $13.84 billion versus $13.69 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +2% change.Revenues- Services: $10.02 billion versus $9.55 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.Revenues- Premiums: $86.96 billion versus the seven-analyst average estimate of $86.21 billion. The reported number represents a year-over-year change of -1.1%.Revenues- Optum Insight: $5.4 billion versus $5.32 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.Revenues- Optum Rx: $38.29 billion versus $37.36 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -0.4% change.Revenues- Optum Health: $23.47 billion compared to the $22.65 billion average estimate based on six analysts. The reported number represents a change of -6.9% year over year.Revenues- UnitedHealthcare- Total: $86.02 billion versus the six-analyst average estimate of $84.75 billion. The reported number represents a year-over-year change of -0.1%.View all Key Company Metrics for UnitedHealth here>>>
Shares of UnitedHealth have returned +4.8% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
UnitedHealth navzdory poklesu počtu členů v Medicare Advantage zvýšil celoroční výhled zisku. Ve čtvrtletí vykázal provozní cash flow 11,1 miliardy USD a výhled cash flow zvýšil na zhruba 24 miliard USD.
Yet, instead of lowering expectations, the nation’s largest health insurer raised its full-year earnings guidance, suggesting Wall Street may be paying attention to something far more important than membership growth.
Quality Over QuantityFor years, Medicare Advantage enrollment has been one of the healthcare sector’s most closely watched growth metrics. More members typically translate into higher premium revenue and greater market share.
UnitedHealth’s latest results challenge that assumption.
CEO Stephen Hemsley framed the quarter as evidence that UnitedHealth’s strategy is centered on “simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people.”
A Different Kind Of TurnaroundThe numbers suggest UnitedHealth is prioritizing profitability over membership growth.
While Medicare enrollment declined, improved pricing, disciplined medical cost management and operational efficiencies more than offset the impact. The company also generated $11.1 billion in operating cash flow during the quarter and increased its full-year cash flow outlook to roughly $24 billion, reinforcing management’s confidence in the business.
For investors, that marks a notable shift in the way UnitedHealth’s performance may be judged. Instead of asking how many members the company is adding, the market appears increasingly focused on how efficiently it can serve the members it already has.
The Next Number To WatchThe membership decline won’t disappear from the investment debate.
If Medicare Advantage enrollment continues to fall over multiple quarters, investors will eventually begin questioning whether pricing discipline can continue offsetting slower growth. But if UnitedHealth keeps improving margins while maintaining its earnings outlook, the company’s strategy could reshape what Wall Street considers the most important metric in managed care.
For now, UnitedHealth’s latest quarter delivered an unexpected message: in today’s healthcare market, fewer members don’t necessarily mean a weaker business.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
--(BUSINESS WIRE)--UnitedHealth Group (NYSE: UNH) today reported second quarter 2026 results and raised guidance for full year 2026.
“Our results and outlook reflect the continuing progress in our work to simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people,” said Stephen Hemsley, chief executive officer of UnitedHealth Group.
The company now expects full year 2026 adjusted net earnings between $19.50 to $20.00 per share resulting from performance year-to-date and an improved outlook for the remainder of the year. A table outlining the company’s updated outlook is below, with additional detail on page 7 of this release.
Consolidated revenues for the second quarter 2026 were $112.0 billion and earnings from operations were $8.0 billion, with a net margin of 4.9%. Cash flows from operations were $11.1 billion, or 1.9x net income, and the debt-to-capital ratio was 41.2% as of June 30, 2026.
UnitedHealth Group’s medical cost ratio was 86.7% for the second quarter 2026, reflecting cost and pricing discipline, as well as mix changes across all benefit offerings. The operating cost ratio of 12.7% in the second quarter 2026 compared to 12.3% in the second quarter 2025, reflecting targeted investments in technology, operations and the community.
Over the last year, the company has advanced a broad set of reforms and commitments to improve affordability, transparency and simplicity for care providers and consumers. These actions reflect the company’s deep commitment to helping people live healthier lives and helping make the health system work better for everyone. These actions are outlined in more detail on page 3 of this release.
Second Quarter 2026 Key Performance Metrics
Second quarter 2026 adjusted net earnings were $6.38 per share. The medical care ratio was 86.7% and reflected product design changes, improved medical management and better aligned pricing. MCR was affected by $860 million of net favorable prior period development, with the majority related to 2026 dates of service. The operating cost ratio of 12.7% included targeted investments in infrastructure, artificial intelligence, care delivery enhancements, consumer experience and community support. UnitedHealthcare served 48.5 million consumers and reported revenues of $86.0 billion and earnings of $3.9 billion, with operating margins of 4.6%. Optum supported more than 120 million consumers and generated revenues of $65.7 billion and earnings of $4.0 billion, representing 160 basis points of margin expansion year-over-year. UnitedHealth Group Updated 2026 Full Year Guidance
($ in millions, except per share data)
Reported Operating
Earnings
Adjusted Operating
Earnings
UnitedHealthcare
> $12,000
> $12,000
Optum Health
> $2,275
> $2,215
Optum Insight
> $4,925
> $4,750
Optum Rx
> $6,250
> $6,250
Optum (a)
> $13,450
> $13,215
UnitedHealth Group
> $25,450
> $25,215
Medical Care Ratio
88.1% ± 25 bps
Tax Rate
~18.5%
Cash Flows from Operations
~$24,000
Share Repurchase
At Least $5,000
Net Earnings to UNH Shareholders
> $16,750
Diluted
Adjusted (b)
Net Earnings per Share
$18.45 - $18.95
$19.50 - $20.00
Addressing America’s Healthcare Challenges with Sustainable Solutions
UnitedHealth Group remains committed to addressing the issues that make health care costly and complicated for the people and providers we serve. Recent actions taken to address these issues include:
UnitedHealth Group Second Quarter 2026 Results
Quarterly Financial Performance
Three Months Ended
June 30,
2026
June 30,
2025
March 31,
2026
Revenues
$112.0 billion
$111.6 billion
$111.7 billion
Earnings from Operations
$8.0 billion
$5.2 billion
$9.0 billion
Net Margin
4.9%
3.1%
5.6%
UnitedHealth Group’s second quarter 2026 revenues were $112.0 billion compared to $111.6 billion in the year ago quarter. Second quarter 2026 earnings from operations of $8.0 billion compared to $5.2 billion in the year ago quarter, driven by strong performance across both UnitedHealthcare and Optum. The second quarter 2026 medical care ratio was 86.7% compared to 89.4% in the second quarter 2025. The year-over-year decrease was driven by benefit design and pricing discipline, member mix and medical cost management initiatives. Net medical reserve development was $860 million in the quarter. Days claims payable were 47.0 compared to 48.6 in the first quarter 2026 and 44.5 in the second quarter 2025. The sequential variation was driven by normal seasonality. Days sales outstanding of 17.7 compared to 21.6 in the first quarter 2026 and 19.9 in the year ago quarter, with the sequential and year-over-year decrease due to payment timing. The second quarter 2026 operating cost ratio of 12.7% compared to 12.3% in second quarter 2025, reflecting incremental investments in technology, processes and people to improve care delivery and customer experiences and advance community health. Cash flows from operations were $11.1 billion, or 1.9 times net income, reflecting the timing of a substantial government payment, along with strong earnings performance and disciplined working capital management. Debt-to-capital ratio was 41.2% as of June 30, 2026, compared to 42.9% in the first quarter 2026 and 44.1% in the second quarter 2025. The company continues to target a long-term debt-to-capital ratio of approximately 40.0% by year-end. The company repurchased $4.0 billion of its common stock through mid-July 2026 and is on track to repurchase at least $5.0 billion for the full year 2026. UnitedHealthcare Second Quarter 2026 Results
UnitedHealthcare provides health care benefits to individuals and employers, as well as Government Program beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience and reducing the total cost of care.
Quarterly Financial Performance
Three Months Ended
June 30,
2026
June 30,
2025
March 31,
2026
Revenues
$86.0 billion
$86.1 billion
$86.3 billion
Earnings from Operations
$3.9 billion
$2.1 billion
$5.7 billion
Operating Margin
4.6%
2.4%
6.6%
UnitedHealthcare
UnitedHealthcare continues to improve the consumer experience, including by expanding care access and digital services, simplifying prior approvals and offering greater support to rural hospitals and care providers. UnitedHealthcare second quarter 2026 revenues of $86.0 billion compared to $86.1 billion in the second quarter 2025. UnitedHealthcare served 48.5 million people in the second quarter 2026, down 525,000 sequentially. UnitedHealthcare’s second quarter 2026 earnings from operations were $3.9 billion and operating margin was 4.6% compared to $2.1 billion and 2.4% in second quarter 2025. The year-over-year increase was driven by medical and operating cost management, pricing discipline and benefit design changes. UnitedHealthcare Employer & Individual
UnitedHealthcare Employer & Individual second quarter 2026 revenues were $20.0 billion compared to $19.8 billion in the second quarter 2025. The number of people served contracted by 145,000 in the second quarter 2026 due to attrition in employer self-funded and fully-insured products. UnitedHealthcare Medicare & Retirement
UnitedHealthcare Medicare & Retirement second quarter 2026 revenues were $42.4 billion compared to $42.6 billion in the second quarter 2025 due to fewer seniors served. Seniors served through Medicare Advantage, including programs serving complex populations included in Medicaid, have contracted by 965,000 since year-end 2025. UnitedHealthcare Community & State
UnitedHealthcare Community & State second quarter 2026 revenues were $23.6 billion compared to $23.7 billion in the second quarter 2025. People served contracted by 380,000 in the second quarter 2026 primarily due to the planned exit from the Louisiana health plan, as well as ongoing Medicaid eligibility requirements. Optum Second Quarter 2026 Results
The Optum businesses serve participants throughout health care, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance by optimizing care quality, reducing care costs and improving the consumer experience.
Quarterly Financial Performance
Three Months Ended
June 30,
2026
June 30,
2025
March 31,
2026
Revenues
$65.7 billion
$67.2 billion
$63.7 billion
Earnings from Operations
$4.0 billion
$3.1 billion
$3.3 billion
Operating Margin
6.2%
4.6%
5.2%
Optum Health
Optum Health continues to show steady momentum, with ongoing improvements in access to care and clinical and operational discipline driving better patient outcomes, increased provider satisfaction and cost management savings as the business recenters on its integrated value-based care delivery model. Optum Health’s second quarter 2026 revenues of $23.5 billion decreased 5% year-over-year due to ~700,000 fewer value-based care patients served. Second quarter 2026 earnings from operations were $1.2 billion, representing a 5.1% operating margin. The year-over-year increase was driven by strong operational improvements and medical cost management. Optum Insight
Optum Insight continues to bring AI-enabled products and services to the market, including autonomous coding and digital prior authorization tools, and completed its acquisition of Alegeus on July 2, 2026, expanding the company's consumer-directed healthcare account capabilities. Optum Insight reported second quarter 2026 revenues of $5.4 billion. Second quarter 2026 earnings from operations were $1.4 billion compared to $1.2 billion in the second quarter 2025. The year-over-year increase was driven by operational improvements and timing of contracts. Optum Rx
Optum Rx is leading an industry-wide shift toward greater transparency and affordability through a modern pharmacy care model that eliminates spread pricing, replaces volume-based incentives with clearly defined per-member fees and provides full disclosure of manufacturer payments. Optum Rx’s second quarter 2026 revenues were $38.3 billion compared to $38.5 billion in second quarter 2025. Earnings from operations for the second quarter 2026 were $1.5 billion compared to $1.4 billion in the second quarter 2025, reflecting specialty generics adoption and continued operational improvements. Adjusted scripts were 387 million compared to 414 million last year due to membership declines within UnitedHealthcare and other customers. UnitedHealth Group 2026 Outlook
($ and weighted-average shares in millions; except per share data)
As of
January 27, 2026
As of
July 16, 2026
Operating Earnings
UnitedHealthcare
> $10,800
> $12,000
Optum Health
> $2,200
> $2,275
Optum Insight
> $4,750
> $4,925
Optum Rx
> $6,250
> $6,250
Optum
> $13,200
> $13,450
UnitedHealth Group
> $24,000
> $25,450
Net Earnings to UNH Shareholders
> $15,600
> $16,750
Diluted Net Earnings per Share to UNH Shareholders
> $17.10
$18.45 - $18.95
Adjusted Earnings per Share (1)
> $17.75
$19.50 - $20.00
Medical Care Ratio
88.8% ± 50 bps
88.1% ± 25 bps
Tax Rate
~19.25%
~18.5%
Cash Flows from Operations
> $18,000
~$24,000
Share Repurchase
~$2,500
At Least $5,000
(1) Refer to page 16 of this release for a reconciliation of non-GAAP measures.
Below outlines the 2026 Reported to Adjusted Earnings Bridge for Optum as of July 16, 2026.
Optum 2026 Reported to Adjusted Earnings Bridge
($ in millions)
Optum Health
Optum Insight
Optum Rx
Total Optum
2026 Reported Operating Earnings Guidance
> $2,275 (1)
> $4,925
> $6,250
> $13,450
Net Portfolio Divestitures, Restructuring and Other
$345
$(175)
-
$170
Net Change in Third Party Loss Contracts
$(405)
-
-
$(405)
2026 Adjusted Operating Earnings
> $2,215
> $4,750
> $6,250
> $13,215
Adjusted Operating Earnings as of January 27, 2026
> $1,577
> $4,750
> $6,250
> $12,577
(1) Optum Health includes $405 million of 2026 operating earnings related to the net change in loss contracts reserve, which will be excluded from adjusted operating earnings and adjusted earnings per share.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow UnitedHealth Group on LinkedIn.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the company’s results, strategy and future outlook on a conference call with investors at 8:00 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company’s website (www.unitedhealthgroup.com). Following the call, a webcast replay will be on the Investor Relations page through July 30, 2026. This earnings release and the Form 8-K dated July 16, 2026, can also be accessed from the Investor Relations page of the company’s website.
Non-GAAP Financial Information
This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements which are intended to take advantage of the “safe harbor” provisions of the federal securities laws. The words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; our ability to successfully execute initiatives designed to simplify and improve the consumer healthcare experience; our ability to effectively execute our value-based care strategies; the DOJ’s legal actions concerning our participation in the Medicare program; our ability to maintain and achieve improvement in quality scores impacting revenue; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to maintain or increase our market share; changes in or challenges to our public sector contract awards; failure to achieve targeted operating cost productivity improvements; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; the impact of potential changes in tax laws and regulations; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; risks and uncertainties associated with our increasing use of artificial intelligence and other emerging technologies; failure to complete, manage or integrate strategic transactions; risks and uncertainties associated with the sale of our remaining operations in South America; risks associated with public health crises arising from large-scale medical emergencies, pandemics, natural disasters and other extreme events; failure to attract, develop, retain, and manage the succession of key employees and executives; our investment portfolio performance; impairment of our goodwill and intangible assets; failure to protect proprietary rights to our databases, software and related products; downgrades in our credit ratings; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, reinvest in our business, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock.
This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations, more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data; unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues
Premiums
$86,956
$87,905
$174,517
$174,439
Products
13,835
13,564
27,085
26,600
Services
10,018
9,039
19,797
18,011
Investment and other income
1,223
1,108
2,354
2,141
Total revenues
112,032
111,616
223,753
221,191
Operating costs
Medical costs
75,358
78,585
148,847
151,996
Operating costs
14,268
13,778
29,658
27,372
Cost of products sold
13,375
13,019
26,198
25,409
Depreciation and amortization
1,040
1,084
2,069
2,145
Total operating costs
104,041
106,466
206,772
206,922
Earnings from operations
7,991
5,150
16,981
14,269
Interest expense
(962)
(1,027)
(1,917)
(2,025)
Loss on sale of subsidiary and subsidiaries held for sale
(61)
(41)
(133)
(56)
Earnings before income taxes
6,968
4,082
14,931
12,188
Provision for income taxes
(1,298)
(510)
(2,780)
(2,142)
Net earnings
5,670
3,572
12,151
10,046
Earnings attributable to noncontrolling interests
(186)
(166)
(387)
(348)
Net earnings attributable to UnitedHealth Group common shareholders
$5,484
$3,406
$11,764
$9,698
Diluted earnings per share attributable to UnitedHealth Group common shareholders (a)
$6.04
$3.74
$12.94
$10.61
Adjusted earnings per share attributable to UnitedHealth Group common shareholders (b)
$6.38
$4.08
$13.61
$11.29
Diluted weighted-average common shares outstanding
906
910
908
914
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions; unaudited)
June 30,
2026
December 31,
2025
Assets
Cash and short-term investments
$31,468
$28,121
Accounts receivable, net
21,573
23,018
Other current assets
33,819
39,443
Total current assets
86,860
90,582
Long-term investments
57,716
54,251
Other long-term assets
165,151
164,748
Total assets
$309,727
$309,581
Liabilities, redeemable noncontrolling interests and equity
Medical costs payable
$38,930
$39,337
Short-term borrowings and current maturities of long-term debt
3,827
6,069
Other current liabilities
69,063
69,491
Total current liabilities
111,820
114,897
Long-term debt, less current maturities
69,501
72,320
Other long-term liabilities
22,457
20,666
Redeemable noncontrolling interests
1,436
1,608
Equity
104,513
100,090
Total liabilities, redeemable noncontrolling interests and equity
$309,727
$309,581
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
Six Months Ended
June 30,
2026
2025
Operating Activities
Net earnings
$12,151
$10,046
Noncash items:
Depreciation and amortization
2,069
2,145
Deferred income taxes and other
176
40
Share-based compensation
624
572
Loss on sale of subsidiary and subsidiaries held for sale
133
56
Net changes in operating assets and liabilities
4,811
(215)
Cash flows from operating activities
19,964
12,644
Investing Activities
(Purchases of investments, net of sales and maturities) sales and maturities of investments, net of purchases
(2,751)
1,327
Purchases of property, equipment and capitalized software
(1,562)
(1,784)
Cash paid for acquisitions and other transactions, net
(98)
(734)
Repayment of care provider loans - cyberattack
197
1,293
Other, net
(31)
(1,618)
Cash flows used for investing activities
(4,245)
(1,516)
Financing Activities
Common share repurchases
(1,646)
(5,545)
Dividends paid
(4,092)
(3,912)
Net change in short-term borrowings and long-term debt
(4,813)
1,566
Other, net
(1,064)
43
Cash flows used for financing activities
(11,615)
(7,848)
Effect of exchange rate changes on cash and cash equivalents
(3)
29
Increase in cash and cash equivalents, including cash within businesses held for sale
4,101
3,309
Less: net change in cash within businesses held for sale
119
(25)
Net increase in cash and cash equivalents
4,220
3,284
Cash and cash equivalents, beginning of period
24,365
25,312
Cash and cash equivalents, end of period
$28,585
$28,596
UNITEDHEALTH GROUP
REVENUES BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION
(in millions; unaudited)
Optum
UnitedHealth
Group
Consolidated (a)
UnitedHealthcare
Optum
Health (c)
Optum
Insight (c)
Optum
Rx
Total
Optum (a)
Three Months Ended June 30, 2026
Total revenues
$86,017
$23,472
$5,402
$38,292
$65,663
$112,032
Restructuring and other (2)
—
(1)
—
—
(1)
(1)
Adjusted revenues (b)
$86,017
$23,471
$5,402
$38,292
$65,662
$112,031
Three Months Ended June 30, 2025
Total revenues
$86,103
$24,725
$5,232
$38,459
$67,225
$111,616
Six Months Ended June 30, 2026
Total revenues
$172,282
$47,581
$10,527
$74,028
$129,412
$223,753
Restructuring and other (2)
—
2
(77)
—
(75)
(75)
Adjusted revenues (b)
$172,282
$47,583
$10,450
$74,028
$129,337
$223,678
Six Months Ended June 30, 2025
Total revenues
$170,720
$49,562
$10,259
$73,591
$131,110
$221,191
UnitedHealthcare Revenues
(in millions; unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
UnitedHealthcare Employer & Individual - Domestic
$19,048
$18,950
$38,254
$38,016
UnitedHealthcare Employer & Individual - Global
944
819
1,856
1,601
UnitedHealthcare Employer & Individual - Total
19,992
19,769
40,110
39,617
UnitedHealthcare Medicare & Retirement
42,390
42,623
84,472
84,328
UnitedHealthcare Community & State
23,635
23,711
47,700
46,775
Total UnitedHealthcare revenues
$86,017
$86,103
$172,282
$170,720
(a)
Optum and consolidated revenues for the three months ended June 30, 2026 and 2025 include Optum eliminations of $1,503 and $1,191; and corporate eliminations of $39,648 and $41,712, respectively. Optum and consolidated revenues for the six months ended June 30, 2026 and 2025 include Optum eliminations of $2,724 and $2,302; and corporate eliminations of $77,941 and $80,639, respectively.
(b)
See page 16 for description of non-GAAP measures.
(c) Prior period amounts have been recast to reflect the realignment of Optum Financial. Note: See end notes for further information regarding non-GAAP adjustments.
UNITEDHEALTH GROUP
EARNINGS BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION
(in millions, except percentages; unaudited)
Optum
UnitedHealth
Group
Consolidated
UnitedHealthcare
Optum
Health (b)
Optum
Insight (b)
Optum
Rx
Total
Optum
Three Months Ended June 30, 2026
Earnings from operations
$3,942
$1,190
$1,369
$1,490
$4,049
$7,991
Net portfolio divestitures and South American impacts (1)
—
35
4
—
39
39
Restructuring and other (2)
—
(51)
—
—
(51)
(51)
Adjusted earnings from operations (a)
$3,942
$1,174
$1,373
$1,490
$4,037
$7,979
Operating margin
4.6 %
5.1 %
25.3 %
3.9 %
6.2 %
7.1 %
Adjusted operating margin (a)
4.6 %
5.0 %
25.4 %
3.9 %
6.1 %
7.1 %
Three Months Ended June 30, 2025
Earnings from operations
$2,075
$429
$1,205
$1,441
$3,075
$5,150
Operating margin
2.4 %
1.7 %
23.0 %
3.7 %
4.6 %
4.6 %
Six Months Ended June 30, 2026
Earnings from operations
$9,636
$2,331
$2,332
$2,682
$7,345
$16,981
Net portfolio divestitures and South American impacts (1)
—
341
(524)
(8)
(191)
(191)
Restructuring and other (2)
—
(186)
339
—
153
153
Adjusted earnings from operations (a)
$9,636
$2,486
$2,147
$2,674
$7,307
$16,943
Operating margin
5.6 %
4.9 %
22.2 %
3.6 %
5.7 %
7.6 %
Adjusted operating margin (a)
5.6 %
5.2 %
20.5 %
3.6 %
5.6 %
7.6 %
Six Months Ended June 30, 2025
Earnings from operations
$7,301
$1,840
$2,369
$2,759
$6,968
$14,269
Operating margin
4.3 %
3.7 %
23.1 %
3.7 %
5.3 %
6.5 %
UNITEDHEALTH GROUP
PEOPLE SERVED AND PERFORMANCE METRICS - SUPPLEMENTAL FINANCIAL INFORMATION
(unaudited)
UnitedHealthcare Customer Profile
(in thousands)
People Served
June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Commercial:
Risk-based
7,655
7,725
8,165
8,440
Fee-based
22,265
22,340
21,485
21,530
Total Commercial
29,920
30,065
29,650
29,970
Medicare Advantage
7,565
7,555
8,445
8,350
Medicaid
6,780
7,160
7,380
7,490
Medicare Supplement (Standardized)
4,260
4,270
4,285
4,305
Total Community and Senior
18,605
18,985
20,110
20,145
Total UnitedHealthcare - Medical
48,525
49,050
49,760
50,115
Supplemental Data
Medicare Part D stand-alone
2,710
2,740
2,770
2,800
South American businesses held for sale
1,145
1,160
1,160
1,165
Optum Performance Metrics
June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Optum Health Consumers Served (in millions) (a)
93
93
92
95
Optum Rx Quarterly Adjusted Scripts (in millions)
387
383
424
414
UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, except per share data; unaudited)
Adjusted Net Earnings Per Share
Three Months Ended
June 30,
Six Months Ended
June 30,
Projected
Year Ended
December 31,
2026
2025
2026
2025
2026
Net earnings attributable to UnitedHealth Group common shareholders
$5,484
$3,406
$11,764
$9,698
> $16,750
Intangible amortization
346
409
680
826
~1,345
Net portfolio divestitures and South American impacts (1)
100
—
(58)
—
~(35)
Restructuring and other (2)
(51)
—
153
—
~(50)
Tax effect of adjustments
(87)
(99)
(169)
(201)
~(285)
Adjusted net earnings attributable to UnitedHealth Group common shareholders
$5,792
$3,716
$12,370
$10,323
> $17,725
Diluted earnings per share
$6.04
$3.74
$12.94
$10.61
$18.45 to $18.95
Intangible amortization per share
0.38
0.45
0.75
0.90
~1.50
Net portfolio divestitures and South American impacts per share
UnitedHealth shares are experiencing downward pressure. What’s pulling UNH shares down? Earnings Preview & HistoryUnitedHealth is expected to report earnings per share of $4.85 along with revenue of $110.77 billion. The company has beaten EPS estimates in 3 consecutive quarters.
In the most recent quarter, UnitedHealth Group reported EPS of $7.23, beating estimates of $6.56 by 0.10%. Revenue came in at $111.72B, exceeding the estimate of $109.57B by 0.02%.
Investors should watch Medicare Advantage membership trends and pricing commentary tied to the recent payment hike, since that’s the macro tailwind currently supporting sentiment in the group. They should also track growth in Optum’s services and pharmacy benefit businesses, which would need to offset any flat-to-down consolidated revenue.
Analyst Consensus & Recent Actions The stock carries a Buy rating with an average price target of $432.63. Recent analyst moves include:
TD Cowen: Hold (Raises Target to $430.00) (July 14) Truist Securities: Buy (Raises Target to $480.00) (July 14) Keybanc: Overweight (Raises Target to $475.00) (July 14) UnitedHealth Shares TumbleUNH Price Action: At the time of publication, UnitedHealth shares are trading 2.20% lower at $415.85, according to data from Benzinga Pro.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
UnitedHealth letos investuje do AI asi 1,5 mld. USD a očekává z ní konzervativní návratnost 2:1 během několika let. Už teď hlásí rychlejší schvalování, méně zamítnutí a úspory téměř 1 mld. USD.
After a brutal stretch that battered its stock and its reputation, UnitedHealth Group (UNH +1.13%) is leaning hard into artificial intelligence to steady the ship. The company is investing about $1.5 billion in AI across its operations this year, and management told investors on its first-quarter 2026 earnings call that it expects a conservative 2-to-1 return on that spending over the next few years, with many tools paying for themselves within 12 to 18 months. For anyone weighing the bull case, the question is whether those numbers are real or aspirational.
Where the money is going The spending is split deliberately. Roughly one-third is flowing into software products and platforms to push its Optum Insight unit toward an "AI-first" model, while the other two-thirds is spread across everyday processes like claims and prior authorization. The company says it has identified more than 1,000 potential AI use cases.
Image source: Getty Images.
What makes the story more than a slide deck is that some results are already showing up. At Optum Rx, an AI prior-authorization tool has cut prescription approval times from more than eight hours to under 30 seconds, while denials tied to missing information fell 68% and appeals dropped 88%. Call-center volume is down 25% as members shift to AI-enabled self-service, and its OptumReal claims platform has handled roughly 500 million claims so far this year, on track for 2.5 billion transactions by year-end.
Put together, the bull case is straightforward: Optum expects AI-driven efficiency to deliver close to $1 billion in cost reductions this year, which flows almost directly to profit. For a company trying to rebuild margins and investor trust, that's a meaningful tailwind, and the pivot toward selling AI software to other healthcare players could open a higher-quality revenue stream over time. If even the "conservative" 2-to-1 return materializes across a $1.5 billion base, the payoff compounds year after year.
The risks worth naming I'd temper the enthusiasm, though. That 2-to-1 figure is a projection, not a result, and grand ROI targets have a way of slipping. More importantly, using AI to speed up claims and prior-authorization decisions is exactly the kind of activity now drawing lawsuits and regulatory scrutiny across the insurance industry, where critics worry algorithms are being used to deny care. UnitedHealth is deploying these tools while still working through the broader troubles that hit it hard, so execution is far from guaranteed.
Today's Change
(
1.13
%) $
4.79
Current Price
$
429.41
UnitedHealth's AI push gives the bull case something concrete to point to: a defined investment, early operational wins, and a credible path to real savings. That strengthens the turnaround argument. But treat the 2-to-1 return as a goal to verify quarter by quarter, not a promise, and keep an eye on the legal and political risks that come with automating decisions about people's healthcare.
UnitedHealth čeká ve 2. čtvrtletí EPS 4,84 USD při tržbách 110,05 mld. USD před otevřením trhu 16. července. Odhady počítají s poklesem členství, ale s lepším řízením nákladů na péči.
Key Takeaways UNH is expected to report Q2 EPS of $4.84 on $110.05B in revenues before the July 16 opening bell.UnitedHealth may see lower memberships, while improved medical cost management could lift profitability.UNH trades above its historical valuation but below Humana and Molina, with long-term growth in focus. UnitedHealth Group Incorporated (UNH - Free Report) is set to report second-quarter 2026 results on July 16, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.84 per share on revenues of $110.05 billion.
Second-quarter earnings estimates witnessed one downward revision and no upward movement over the past 60 days. The bottom-line projection indicates an increase of 18.6% from the year-ago reported number. But the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 1.4%.
Image Source: Zacks Investment Research
For the current year, the Zacks Consensus Estimate for UnitedHealth’s revenues is pegged at $443.74 billion, implying a decline of 0.9% year over year. However, the consensus mark for current-year earnings per share is pegged at $18.32, implying an improvement of 12.1% on a year-over-year basis.
UnitedHealth beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 0.8%. This is depicted in the figure below.
Q2 Earnings Whispers for UNHOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
UNH currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping UNH’s Q2 Results?The Zacks Consensus Estimate for premium revenues for the second quarter indicates a 2.2% year-over-year decline, whereas our model estimate suggests a 3.1% fall. Lower contributions from both the UnitedHealthcare division and Optum Health are expected to have caused the decrease.
The Zacks Consensus Estimate for UnitedHealthcare’s total domestic commercial customers suggests a 1.5% year-over-year decline, whereas our estimate implies a 1.6% slip. The consensus mark for Medicare Advantage members indicates an 11% year-over-year decrease. The same for Medicaid memberships implies a 6.5% fall from the year-ago level. These are likely to have pushed total memberships in the domestic market down from the year-ago period. The consensus estimate implies around 3.6% decline year over year. These are likely to have affected its revenues in the second quarter.
Nevertheless, better medical cost management is likely to have improved its medical care ratio in the second quarter. The Zacks Consensus Estimate for UNH’s medical care ratio is pegged at 88.6%, down from 89.4% in the year-ago quarter.
As such, the consensus mark for UnitedHealthcare’s operating income signals 40.7% year-over-year jump. Moreover, the Zacks Consensus Estimate for operating income from the total Optum business segment suggests a 7.8% year-over-year increase.
UNH’s Price Performance & ValuationUnitedHealth's stock has gained 28.6% in the year-to-date period compared with the industry’s growth of 28.5%. Its peers, such as Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , have jumped 53.1% and 34.4%, respectively, during this time. Meanwhile, the S&P 500 has increased 10.7%.
YTD Price Performance – UNH, HUM, MOH, Industry & S&P 500 Image Source: Zacks Investment Research
Now, let’s look at the value UnitedHealth offers investors at current levels.
UNH is trading at 21.63X forward 12-month earnings, above its five-year median of 19.20X, and the industry’s average of 18.48X. In comparison, Humana and Molina Healthcare are currently trading at 32.21X and 33.41X, respectively.
Image Source: Zacks Investment Research
How Should You Play UNH Stock Now?UnitedHealth heads into its second-quarter 2026 earnings report with high expectations, as its results are likely to offer an important read on broader trends across the managed-care industry. The company continues to grapple with regulatory investigations, policy uncertainty and elevated healthcare utilization, all of which could pressure sentiment in the near term. Membership declines across certain businesses also remain a concern, though improved medical cost management is expected to support profitability.
At the same time, UnitedHealth's unmatched scale, diversified healthcare platform and expanding data capabilities continue to support its long-term growth story. The company's efforts to reshape the pharmacy benefit management model through a more transparent, fee-based approach could also strengthen its competitive positioning over time.
While UNH trades above its historical median valuation and the industry average, it remains less expensive than peers like Humana and Molina Healthcare. With a favorable long-term outlook and improving investor confidence regarding execution under CEO Stephen J. Hemsley, the stock appears well positioned. Investors may consider gradually accumulating shares while closely monitoring the upcoming earnings report and developments on the regulatory front.
UnitedHealth před výsledky vykazuje medvědí technické signály a po výsledcích hrozí průraz dolů. Další klíčová úroveň je 400 USD, zatímco nad 450 USD by se výhled zhoršil.
UnitedHealth Group stock has been in a strong rally this year as investors cheered its turnaround efforts and the Trump administration’s decision to boost Medicare Advantage payments by a larger-than-expected rate.
UNH jumped and peaked at $434 last week, up by 66% from its lowest point this year. This surge mirrored that of other health insurance companies like CVS, Humana, and Elevance Health.
There are signs that this rally is about to end as the UNH stock has flashed some highly bearish chart patterns ahead of its earnings report.
The daily chart shows that UNH stock has been in an uptrend in the past few months. Recently, however, this momentum has slowed, resulting in the stock forming a rising wedge pattern.
This pattern is made up of two ascending and converging trendlines, whose two lines are now nearing their confluence. In most cases, this pattern normally leads to a bearish breakout, especially when the two lines are about to converge.
The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bearish divergence pattern. This is a situation where an asset is rising, while the oscillators are moving downwards.
In this case, the RSI is approaching the neutral zone of 50, while the PPO Indicator is about to cross the zero line.
Therefore, the most likely scenario is where UnitedHealth shares make a bearish breakout after earnings this week. If this happens, the next key level to watch will be at $400.
The bearish outlook will become invalid if it jumps above the psychological level of $450. Such a move will invalidate the bearish outlook and point to further gains ahead.
UNH stock chart | Source: TradingView
UnitedHealth Group stock has jumped in the past few months as the management has implemented a turnaround strategy. This approach included management changes and a full independent review on its business operations.
The stock continued its strong rally after the Trump administration hiked Medicare Advantage payouts by over 2%, higher than what it proposed in January this year. This addition is worth over $13 billion, a notable amount since UNH has a big market share in the industry.
The company also published strong financial results and hiked its annual guidance. As a result, this week’s earnings report will provide more hints on its business and whether the changes are having results.
Yahoo Finance data shows that the expectation is that its revenue softened by 71 basis points to $110 billion. The guidance for its third quarter is expected to be $110.89 billion, with the annual revenue coming in at $444.1 billion.
There are signs that UnitedHealth has become a bit overvalued, meaning that its earnings need to be significantly higher than expected. The forward price-to-earnings ratio stands at 24.80, higher than the five-year average of 25. This likely explains why Warren Buffett’s Berkshire Hathaway decided to sell the shares.
Additionally, UNH stock is slightly higher than the consensus among analysts. This consensus is $417, higher than the current $424. In a recent note, Sidharth Sahoo, an HSBC analyst, placed his target for the stock at $380. Other analysts, including those from RBC and Morgan Stanley, hiked their targets to over $460.
Akcie UnitedHealth Group zakončily poslední obchodní seanci na 424,62 USD, což znamenalo denní pokles o 1,64 %. Za poslední měsíc si akcie připsaly 6,44 %.
UnitedHealth Group (UNH - Free Report) ended the recent trading session at $424.62, demonstrating a -1.64% change from the preceding day's closing price. This change lagged the S&P 500's 0.42% gain on the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.29%.
Shares of the largest U.S. health insurer have appreciated by 6.44% over the course of the past month, outperforming the Medical sector's gain of 5.6%, and the S&P 500's gain of 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. The company's earnings report is set to go public on July 16, 2026. The company is forecasted to report an EPS of $4.84, showcasing a 18.63% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $110.05 billion, down 1.4% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.32 per share and a revenue of $443.74 billion, signifying shifts of +12.05% and -0.85%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for UnitedHealth Group. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. UnitedHealth Group is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 23.57. This signifies a premium in comparison to the average Forward P/E of 21.55 for its industry.
We can also see that UNH currently has a PEG ratio of 1.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - HMOs was holding an average PEG ratio of 1.43 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.
UnitedHealth prostřednictvím UnitedHealthcare zavádí Lifestyle Spending Account napojený na UHC Store pro nákup zdravotních a wellness produktů bez nutnosti podávat žádosti o proplacení. Program je dostupný více než 15 milionům komerčních členů.
Key Takeaways UnitedHealth launched a Lifestyle Spending Account integrated with the UHC Store for eligible members.UNH's LSA supports fitness, nutrition, sleep and more without reimbursement claims.UnitedHealth says the benefit complements broader digital health and member experience initiatives. UnitedHealth Group Incorporated (UNH - Free Report) , through UnitedHealthcare, has launched a Lifestyle Spending Account (“LSA”), expanding its portfolio of consumer-focused health benefits. The employer-sponsored, post-tax account is integrated with UHC Store, enabling eligible members to shop for approved health, wellness and lifestyle products without submitting reimbursement claims. By integrating the benefit directly into its digital platform, UNH is simplifying the purchasing process while giving employers a flexible way to support employees' evolving wellness needs.
The launch reflects a broader shift toward personalized workplace benefits. Unlike traditional health accounts that cover only qualified medical expenses, the LSA extends support to categories such as fitness, nutrition, sleep, mindfulness, women's health and weight management. The platform is available to more than 15 million UnitedHealthcare commercial members and features over 30 offerings from dozens of vendors.
For UNH, the initiative strengthens its strategy of building a more connected digital healthcare ecosystem. Integrating the LSA with UHC Store simplifies administration for employers by reducing reimbursement hassles and limiting the need for relationships with multiple vendors. It also complements the company's recent efforts to improve the member experience, including easing prior authorization requirements, expanding maternity support, enhancing cancer screening coverage and introducing its AI assistant, Avery.
However, the LSA is unlikely to materially boost near-term earnings but strengthens UNH's long-term value proposition. Greater consumer choice, stronger digital engagement and flexible employer solutions can improve member satisfaction and client retention. As workplace healthcare continues to evolve, such initiatives could help UNH deepen employer relationships and reinforce its competitive position in commercial health benefits.
How Are Competitors Faring?Some of UNH’s major competitors in the medical space are Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
Humana is strengthening its employer-sponsored health benefits portfolio through expanded virtual care, wellness and preventive health programs. HUM emphasizes integrated care models that improve member engagement, promote healthier lifestyles and help employers enhance workforce health while managing costs.
Elevance Health is expanding its employer-sponsored health benefits capabilities through the Carelon platform, which integrates pharmacy, behavioral health and care management with digital solutions. ELV continues to invest in personalized care offerings that improve employee health outcomes while helping employers better manage healthcare spending.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 42% in the past year compared with the industry’s growth of 35.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 22.01, above the industry average of 18.50. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $18.32 per share, implying 12.1% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth zvýšil výhled zisku na více než 17,35 USD na akcii z 17,10 USD. V prvním čtvrtletí tržby vzrostly o 2 % a poměr nákladů na péči klesl na 83,9 %.
UnitedHealth Group (UNH 0.60%) has been one of the best buys in the healthcare sector over the past two months, with shares rising roughly 57% since the end of March.
The stock price of the nation's largest health insurer is now up 29% year to date and 38% over the past 12 months. It is an impressive bounce-back, considering shares had fallen to a nearly seven-year low of $234.60 per share on Aug. 1 last year.
One year earlier, on Aug. 1, 2024, UnitedHealth traded at $572 per share and reached an all-time closing high of $625 per share on Nov. 11, 2024. From that high, the stock price plummeted a staggering 62% over the next nine months.
Image source: Getty Images.
What brought on UnitedHealth's 61% drop? The precipitous fall has been well documented both on The Motley Fool and elsewhere. It was a confluence of factors that included the shocking murder of Brian Thompson, CEO of the UnitedHealthcare arm, on Dec. 4, 2024.
But at the same time, UnitedHealth's earnings started tanking as the firm was hit by a huge increase in Medicare Advantage costs, driven by a surge in elective surgeries and procedures and by patients likely holding off on procedures since the pandemic. This took a huge bite out of earnings.
Also, its Optum division took a hit due in large part to Medicare funding reductions. On top of that, UnitedHealth had been under investigation by the Justice Department for antitrust concerns and its billing practices.
Finally, amid the sinking ship, the CEO of UnitedHealth Group, Andrew Witty, abruptly resigned in May 2025 after four years serving in the role. It made matters worse that the company suspended its guidance, creating massive doubt and uncertainty for investors.
How UNH bounced back After UNH hit rock bottom last August, it slowly started climbing back up. It was partly because the stock was so cheap. After losing some 60% of its value, its P/E ratio plummeted from about 33 to around 13 last June.
One bright spot was that UNH was able to maintain its dividend and even raised it for the 16th straight year. Investors looking for a cheap, high-yield dividend stock found one in UNH.
The company also made a pivot, focusing less on new enrollments, exiting some markets, and repricing plans to improve profitability.
That pivot started to show in its Q1 earnings report. Revenue rose 2% while earnings fell 1% year over year, but earnings were up significantly from the December quarter. Also, its medical cost ratio (MCR) dropped to 83.9%, down 90 basis points year over year. This is a measure of efficiency, as it means UNH spent less on healthcare for every dollar collected in premiums.
Today's Change
(
-0.60
%) $
-2.59
Current Price
$
425.60
The company also raised its earnings guidance for this fiscal year to greater than $17.35 per share, up from the previous guidance of $17.10. That would be up from $13.23 per share in 2025.
The strong earnings were one tailwind, but the company also received good news from the federal government, which boosted Medicare Advantage plan rates by 2.48% for 2027. Those rates should directly benefit UnitedHealth by providing it with more money to cover medical costs, potentially increasing profits.
Should you buy UnitedHealth stock? So UnitedHealth has some momentum heading into the second-quarter earnings season, but the fact is, the recent surge has raised UNH's valuation. The P/E ratio is now 32, its highest since March 2025, when the stock price started tanking. There were many other factors at play a year ago that waylaid UNH stock, but the only other time the P/E ratio has been this elevated was around its 2024 peak.
While things are improving, UnitedHealth does not have the kind of earnings power to carry that high multiple. For that reason, I don't think UNH is a particularly good deal right now after this big run-up.
UnitedHealth plánuje v roce 2026 investovat téměř 1,5 mld. USD do AI napříč pojištěním, farmacií, péčí i technologiemi. PreCheck Prior Authorization zkrátil schvalování receptů z více než osmi hodin na méně než 30 sekund.
Key Takeaways UnitedHealth plans to invest nearly $1.5B in AI across insurance, pharmacy, care and technology operations.UNH's AI tools speed prior authorizations, automate claims and expand digital healthcare capabilities.Optum Real is expected to process 2.5B transactions in 2026, supporting software growth opportunities. UnitedHealth Group Incorporated (UNH - Free Report) is making artificial intelligence a core pillar of its long-term strategy, committing nearly $1.5 billion to AI initiatives in 2026. Rather than limiting AI to back-office automation, the company is embedding it across insurance, pharmacy, care delivery and technology operations. It aims to simplify healthcare processes, improve user experience and create scalable technology platforms that support future growth.
The investment is already translating into measurable improvements. UnitedHealthcare is expanding AI-powered digital tools for members, while automation is accelerating prior authorization decisions and reducing administrative burden for providers. At Optum Rx, the company's PreCheck Prior Authorization capability cuts prescription approval times from more than eight hours to under 30 seconds. Meanwhile, Optum Health is deploying AI-enabled scheduling and workflow tools to improve access and enhance clinical productivity.
UNH is extending these capabilities beyond its own operations through Optum Insight. Its AI-first solutions help payers and providers automate claims processing, coverage validation and other administrative tasks. The company expects its Optum Real platform to process more than 2.5 billion transactions in 2026, while several AI products are gaining traction among healthcare organizations, creating opportunities beyond traditional insurance operations.
Although the financial benefits will take time to fully materialize, UnitedHealth appears to be pursuing a strategy that extends well beyond cost reduction. By combining AI with its broad healthcare ecosystem, the company is building new technology capabilities that could strengthen customer relationships, expand software revenue opportunities and reinforce its competitive position in an increasingly digital healthcare industry.
How Are Competitors Faring?Some of UNH’s major competitors in the healthcare service provider space are Humana Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) .
Humana is expanding AI across care management, prior authorization and member engagement to improve efficiency and health outcomes. HUM is also using predictive analytics to identify high-risk members earlier, supporting value-based care while helping manage medical costs and streamline healthcare delivery.
Centene is primarily using AI to strengthen payment integrity and manage rising healthcare costs. CNC’s advanced analytics help detect suspicious claims, identify billing anomalies and improve medical cost management, supporting margins while enhancing oversight across its government-sponsored healthcare programs.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 41.4% in the past year compared with the industry’s rise of 31.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 21.84, above the industry average of 18.18. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $18.32 per share, implying 12.1% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth za první polovinu roku vzrostl o 25 % a stal se nejvýkonnější mega-cap zdravotnickou akcií v indexu S&P 500. Loni přitom oslabil o 34 % kvůli tlaku na zisky a vyšetřování Medicare Advantage.
Last year, UnitedHealth Group (UNH +2.44%) faced a series of headwinds that weighed on the stock, dragging it down 34%. The biggest U.S. health insurer saw earnings suffer as it underestimated the cost and use of services, and the company unexpectedly lost its chief executive officer. Investors also grew more cautious as the Justice Department launched a probe into the insurer's Medicare Advantage operations.
But, UnitedHealth launched a series of steps to turn things around, and the plan is bearing fruit. Longtime CEO Stephen Hemsley returned to the leadership role, the company completed an independent audit of its practices and put into place new actions where needed, and earnings are improving. As a result, investors have returned to the stock. It climbed 25% in the first half, for the biggest gain by a mega-cap healthcare stock in the S&P 500.
Is it now too late to buy UnitedHealth stock? Let's find out.
Image source: Getty Images.
UnitedHealth's biggest challenge First, let's take a look back at the path of UnitedHealth over the past year. As mentioned, the company faced several challenges. And the biggest may have been the earnings situation. UnitedHealth underestimated the utilization levels of healthcare amid an environment of rising costs, and these factors hurt growth.
Since, the company has taken action by exiting certain plans, increasing pricing where necessary, and using artificial intelligence (AI) tools to boost efficiency. The insurer is also reinforcing its position in rural areas and cutting prior authorization requirements -- It just recently said it would decrease these requirements by 30% this year. This is an important move as it streamlines operations for UnitedHealth and hospitals and medical offices. Meanwhile, UnitedHealth's use of technology makes prior authorizations easier to manage, with 95% performed electronically and 90% approved within one business day.
In the recent quarter, UnitedHealth's total revenue increased 2% to $111 billion, while adjusted earnings per share at $7.23 surpassed the company's expectations. Importantly, the medical care ratio -- a measure of the insurer's costs in relation to its revenue from plans -- improved. A lower ratio suggests higher profitability. In the quarter, UnitedHealth's ratio came in at 83.9%, down from 84.8% a year earlier. The company said this was due to improved cost management.
Today's Change
(
2.44
%) $
10.20
Current Price
$
428.19
Margin pressure may continue All of these efforts are ongoing, so we should expect to see additional improvements in the quarters to come. That said, the company said margin pressure will remain this year due to high utilization trends, though this should improve in 2027. UnitedHealth and other insurers also will benefit from higher-than-expected Medicare Advantage rates next year. The government approved a 2.48% average rate increase for 2027, up from the initial proposal of 0.09%.
Now, let's consider whether this healthcare giant is a stock to buy -- or whether it's too late after recent gains. It's true that UnitedHealth isn't completely out of the woods. The insurance giant is still in the recovery phase and must manage various challenges. The path to growth may not be completely linear and full results may not happen overnight.
A fantastic moat But it's important to note that UnitedHealth offers investors certain positive elements. It has a fantastic moat, or competitive advantage, as the country's insurance leader. And its combination of insurance and services businesses -- UnitedHealthcare and Optum, respectively -- makes it difficult for another to unseat. UnitedHealth has also been proactive, taking quick action to turn things around, and we've already seen certain results.
Now, let's consider the stock's valuation. UnitedHealth trades at 23x forward earnings estimates, which is its highest level this year.
But the stock isn't particularly expensive if we look at a longer time period -- it traded at more than 32x estimates early last year.
Considering that UnitedHealth is in the early days of its recovery story, I would expect significant growth in the years to come -- and that means that it isn't too late to get in on the first half's top-performing mega-cap healthcare stock.
UnitedHealth uvedl, že externí audit potvrdil dokumentační podporu u téměř 97 % diagnóz identifikovaných v programu HouseCalls v roce 2025. Nesoulad se týkal 3,4 % diagnóz, které nebyly podloženy.
The corporate logo of UnitedHealthcare, the insurance unit of UnitedHealth Group, appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020.... Purchase Licensing Rights, opens new tab Read more
CompaniesNEW YORK, July 7 (Reuters) - UnitedHealth on Tuesday said an audit by an external consulting firm showed nearly 97% of diagnoses identified within its HouseCalls home-health unit, which has faced scrutiny from lawmakers, were supported by a patient's medical record.
"We look at this with both a sense of pride, but also humility," said Wyatt Decker, an executive vice president at UnitedHealth, adding the company aims to make sure that documentation practices by nurse practitioners more accurately reflect diagnoses patients receive.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
According to the Wall Street Journal, the Department of Health and Human Services has scrutinized diagnoses that appear only in UnitedHealth's home-visit assessments and do not appear elsewhere in a patient's medical record. Patient diagnoses submitted by HouseCalls help determine Medicare Advantage payments to the company's insurance arm, UnitedHealthcare.
The report said 3.4% of diagnoses made by HouseCalls clinicians in 2025 were not supported. HouseCalls, a home-healthcare program under UnitedHealth's Optum primary care business, sends clinicians annually to perform physical exams and discuss patients' medical history. UnitedHealthcare operates Medicare Advantage plans for adults 65 and older and people with disabilities on behalf of the government.
CEO Stephen Hemsley in a letter to stakeholders said the company was committed to doing better and believed home visits helped seniors avoid more expensive medical emergencies.
Hemsley promised the review of the company’s businesses last year after UnitedHealth missed its own profit expectations for the first time since 2008. UnitedHealth commissioned business consulting firm FTI Consulting to conduct the analysis.
FTI in a previous report found that UnitedHealth sometimes lacked standardized documentation in its HouseCalls program.
FTI's report analyzed 200 visits, representing 494 diagnoses. The new report has not yet resulted in changes to the company's policies, Decker said.
Reporting by Amina Niasse; Editing by Stephen Coates
Our Standards: The Thomson Reuters Trust Principles., opens new tab
UnitedHealth se odklání od růstu za každou cenu a soustředí se na ziskovost; v 1. čtvrtletí zlepšil MCR na 83,9 % a zvýšil výhled upraveného EPS na rok 2026.
Key Takeaways UnitedHealth is exiting lower-margin business and focusing on profitability to strengthen earnings quality.UNH improved first-quarter MCR to 83.9%, raised 2026 adjusted EPS outlook and targets a 3.6% net margin.Optum expansion in value-based care, specialty pharmacy and technology services supports long-term growth. UnitedHealth Group Incorporated (UNH - Free Report) is navigating a more challenging operating environment as elevated healthcare utilization, rising Medicare Advantage costs and tighter reimbursement have pressured margins. It has shifted its focus from rapid enrollment growth to stronger earnings quality. Now the key question for investors is whether this strategic reset can restore earnings momentum.
Rather than pursuing enrollment growth at any cost, UnitedHealth is taking a more disciplined approach by repricing Medicare Advantage plans, exiting less profitable markets and focusing on restoring margins and long-term profitability. Early signs suggest the strategy is gaining traction. In the first quarter of 2026, adjusted earnings topped expectations, while the Medical Care Ratio (MCR) improved 90 basis points year over year to 83.9%, reflecting better control over medical costs. It also raised its full-year adjusted EPS outlook and expects net margin to improve to around 3.6% in 2026 from 2.7% in 2025.
UnitedHealth's turnaround isn't just about cutting costs and improving profitability. Optum remains a key growth driver as UnitedHealth expands value-based care, specialty pharmacy and technology-enabled services. These businesses should support margin expansion and more durable earnings growth over time.
The company is also reinventing its PBM business by introducing a transparent, fee-based pricing model that moves away from the traditional rebate-driven system. Together with ongoing investments in Optum's care delivery and technology capabilities, these initiatives could strengthen customer relationships, support sustainable earnings growth and create long-term value for investors.
How Are UNH's Peers Positioned?UnitedHealth isn't alone in adapting to a tougher healthcare environment. Peers from the Medical space, including The Cigna Group (CI - Free Report) and Elevance Health, Inc. (ELV - Free Report) , are also prioritizing operational efficiency and higher-quality growth.
Cigna Group continues to strengthen its healthcare services business, with Evernorth driving growth through specialty pharmacy and AI-powered care solutions. The recent launch of Pharmacy Forward highlights Cigna's focus on simplifying specialty care while supporting long-term earnings growth.
Elevance Health remains focused on disciplined pricing, medical cost management and expanding ELV's Carelon health services platform. Continued investments in value-based care and integrated healthcare services should help improve operating efficiency and support steady long-term growth despite ongoing industry cost pressures.
UNH’s Price Performance, Valuation & EstimatesShares of UnitedHealth have risen 40.1% in the past 12 months compared with the industry’s 42.1%. growth.
Image Source: Zacks Investment Research
From a valuation standpoint, UNH trades at a forward price-to-earnings ratio of 21.71X compared with the industry average of 18.52X. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $18.32 per share, implying a 12.1% increase from the year-ago period’s level.
Image Source: Zacks Investment Research
UNH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group po silných výsledcích za 1. čtvrtletí zvýšila výhled na EPS pro fiskální rok 2026 na více než 18,25 USD a schválila odkup vlastních akcií za 2 mld. USD.
SummaryUnitedHealth Group is reiterated as a buy, with a raised price target near $460, reflecting improved earnings guidance and operational turnaround.Q1 results beat expectations, with non-GAAP EPS of $7.23 and revenue of $111.7B, prompting an FY 2026 EPS outlook above $18.25 and a $2B buyback.UNH benefits from strong free cash flow, a 2.18% yield, positive EPS revisions, and strategic investments in modernization and AI.Technical momentum is robust, but near-term resistance exists below $440; support is at $380, with a measured-move upside target near $480. JHVEPhoto/iStock Editorial via Getty Images
Shares of UnitedHealth Group (UNH) have been on a roller coaster ride in the past year-plus. At one point in 2026, the Health Care sector giant was down more than 20% YTD. Jump ahead more than three
9.44K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
UnitedHealth plánuje do AI investovat 3 miliardy USD v letech 2026 a 2027 a tvrdí, že už nyní přináší zhruba 2 USD hodnoty na každé 1 USD investice. Firma to využívá ke snižování administrativních nákladů a zvyšování produktivity.
Artificial intelligence (AI) has become more than a technology initiative at UnitedHealth Group (UNH +2.63%). It's increasingly becoming a business strategy.
The company plans to invest $3 billion in AI across 2026 and 2027, and management says it's already generating roughly $2 of value for every $1 invested through lower administrative costs, higher productivity, and new software products.
That's not a trivial development from one of the largest healthcare companies in the world.
Image source: Getty Images.
AI is tackling healthcare's biggest inefficiencies Healthcare remains one of the most administratively complex industries in the United States.
Insurance claims, prior authorizations, billing, scheduling, customer service, and medical documentation require enormous amounts of manual work. In fact, data from Morgan Stanley show that insurers and healthcare providers collectively spend roughly $80 billion each year on administrative transactions.
About one-third of the company's AI investment is going toward software products within Optum Insight (the company's technology and data analytics division). At the same time, the remaining two-thirds is focused on improving internal operations. The objective isn't simply to make employees more productive. It's to redesign workflows across the organization.
The returns are already showing up Unlike some corporate AI initiatives that remain largely experimental, UnitedHealth says it's already seeing measurable benefits.
AI tools are helping automate customer service, summarize clinical records, detect fraud, schedule appointments, and process administrative requests that previously required significant human involvement. As a result, management expects much of the return on its AI investments to materialize within 12 to 18 months.
The company is also using AI to improve prior authorization. Today, approximately 95% of prior authorization requests are submitted electronically, about half are processed in real time, and 90% receive a decision within one business day.
For a company serving nearly 150 million people, even small efficiency improvements can produce meaningful financial results.
This is not a random trend UnitedHealth isn't investing in AI simply to keep up with the latest technology trend. The company is trying to solve one of healthcare's biggest cost problems.
If AI continues reducing administrative expenses while improving customer service and speeding up care decisions, it could expand margins across multiple business lines. At the same time, Optum Insight plans to commercialize many of the AI tools it develops internally, creating another potential source of recurring revenue.
The broader business also continues to perform well.
In the first quarter of 2026, UnitedHealth generated $111.7 billion in revenue and adjusted earnings of $7.23 per share, both ahead of Wall Street expectations. Management also raised full-year earnings guidance to more than $18.25 per share, reflecting improving operating performance.
Today's Change
(
2.63
%) $
10.91
Current Price
$
426.54
Lowering costs and improving productivity Artificial intelligence won't solve every challenge facing UnitedHealth. Healthcare remains heavily regulated, reimbursement rates continue to evolve, and medical costs remain difficult to predict.
But unlike many companies still searching for practical AI applications, UnitedHealth is deploying the technology where it can directly lower costs and improve productivity. If management continues delivering the returns it's projecting, AI could become a meaningful driver of long-term earnings growth.
And that's what makes this initiative worth watching.
AI isn't just another expense for UnitedHealth. It has the potential to become a significant competitive advantage.
UnitedHealth Group nově proplácí test Shield od Guardant Health pro screening kolorektálního karcinomu u pojištěnců od 45 let. Přístup k němu tak má více než 100 milionů lidí.
Updated United policy coverage from the largest commercial insurer in the U.S. means 100 million total covered lives have access to the FDA-approved Shield blood test for colorectal cancer (CRC) screeningShield is the first and only FDA-approved blood test included in both ACS and NCCN guidelinesWith rising rates of CRC in younger people, the first major commercial insurer in the U.S. expands Shield coverage to eligible policyholders aged 45 or older PALO ALTO, Calif.--(BUSINESS WIRE)--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today announced its Shield™ blood test for colorectal cancer screening (CRC) is now covered for eligible UnitedHealth Group (UHG) members1, making it the first major commercial insurer to provide coverage for adults 45 or older amid rising CRC rates for adults under 652 and mortality for younger adults as the leading cause of cancer death for those under 50.3
Shield is the first and only FDA-approved blood test for primary colorectal cancer screening in average-risk adults age 45 and older and can be completed with just a blood draw during a routine doctor’s visit, offering Americans a more accessible screening option that overcomes the barriers associated with traditional methods.
Approximately 40 million Americans are covered by UHG’s plans, including members under employer and individual plans, beneficiaries covered by Medicare Advantage and individuals with supplemental Medicare coverage. The updated policy coverage from UHG offers those above the age of 45 and at average risk of colorectal cancer access to the latest innovation in colorectal cancer screening.
“More than 100 million people across America now have access to the Shield blood test,” said AmirAli Talasaz, Guardant Health co-CEO. “With the rising rates of colorectal cancer in younger people, expanding Shield coverage through United, the nation’s largest commercial health insurer, to the 45+ population as a primary screening option marks a critical milestone in our commercial expansion to make colorectal cancer screening more accessible.”
Demonstrating strong clinical performance and real-world evidence published in the New England Journal of Medicine (NEJM),4 Shield is the only FDA-approved blood test included in both ACS5 and National Comprehensive Cancer Network (NCCN) guidelines.6
About Shield
Shield is a methylation partitioning cell-free DNA (mp-cfDNA) non-invasive, blood-based screening test that detects alterations associated with colorectal cancer in the blood. It is intended as a screening test for individuals at average risk for the disease, age 45 or older, and is not intended for individuals at high risk for colorectal cancer. The Shield test can be considered in a manner similar to guideline-recommended non-invasive CRC screening options and can be completed during any healthcare visit. A positive Shield result raises concern for the presence of colorectal cancer or advanced adenoma and the patient should be referred for colonoscopy evaluation.
About Guardant Health
Guardant Health is a leading precision oncology company focused on guarding wellness and giving every person more time free from cancer. Founded in 2012, Guardant is transforming patient care and accelerating new cancer therapies by providing critical insights into what drives disease through its advanced blood and tissue tests, real-world data and AI analytics. Guardant tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and treatment selection for patients with advanced cancer. For more information, visit guardanthealth.com and follow the company on LinkedIn, X (Twitter) and Facebook.
Guardant Health Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the potential utilities, values, benefits and advantages of Guardant Health’s liquid biopsy tests or assays, which involve risks and uncertainties that could cause the actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended December 31, 2025 and in its other reports filed with or furnished to the Securities and Exchange Commission. The forward-looking statements in this press release are based on information available to Guardant Health as of the date hereof, and Guardant Health disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Guardant Health’s views as of any date subsequent to the date of this press release.
