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
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--(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.
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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.
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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.
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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.
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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
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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.
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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.
UnitedHealth Group vzrostla na 420 USD, na nejvyšší úroveň od 25. dubna, a od letošního minima přidala 78 %. Firma zároveň ve 1. čtvrtletí oznámila tržby 111,72 miliardy USD a EPS 7,23 USD, obojí nad odhady.
The UnitedHealth Group stock price has embarked on a major rally in the past few months and has recently formed the encouraging golden cross pattern. UNH jumped to $420, its highest level since April 25. It has soared by 78% from its lowest level this year.
UnitedHealth Group, the biggest health insurance company in the United States, is doing well this year. This is a sharp contrast to what happened last year when it became one of the top laggards in Wall Street.
The stock has rebounded even after Warren Buffett’s Berkshire Hathaway sold all the shares in the first quarter. This rally is mostly because of a change of policy by the Trump administration.
In April, the US administration said that it would boost payments to Medicare Advantage plans next year. It will boost the payments by 2.48% to $13 billion, higher than the 0.09% that the CMS had proposed earlier this year. In a note at the time, a Morningstar analyst said:
"Final rates typically rise from initial rate notices, and we think investors appreciated that pattern remaining intact, despite the ongoing regulatory pressure on this end market.”
In addition to the UNH stock, other similar companies are doing well. CVS Health jumped to $103 on Monday, up sharply from last year’s low of $43.55. While CVS is known for its pharmacies, it is also a big name in the health insurance industry. Humana shares have soared by 135% from its lowest point this year.
The UNH stock price has also soared after the company published strong financial results. These numbers revealed that its revenue soared to $111.72 billion in the first quarter, higher than the expected $109.57. This revenue growth showed that the company was still seeing strong demand during the quarter, a move that will help the new management implement the turnaround.
Its earnings per share (EPS) rose $7.23 beating the analysts estimates of $6.57. Most notably, the company also boosted its forward estimates. It now expects that adjusted earnings will be $18.25 this year, while the annual revenue will soar to $439 billion.
Analysts, on the other hand, predict that the revenue will jump to over $444 billion this year. These numbers explain why analysts are upbeat about its performance, with Bank of America hiking its target to $475 from the previous $450. Leetink Partners and Mizuho see the stock continuing rising.
UnitedHealth stock chart | Source: TradingView
The daily chart shows that the UnitedHealth Group stock has done well in the past few months. It has soared above the crucial resistance level of $381, the highest point in October last year. It was the neckline of the double-bottom-like pattern at $258.
The stock has formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other. This pattern normally leads to more upside over time.
The stock has also remained above the Ichimoku cloud indicator. Therefore, the path of the least resistance is upwards, with the next key target to watch being at $500.
UnitedHealth se od letošního minima vyšplhal asi o 80 % na zhruba 427 USD díky zlepšení marží a zvýšení celoročního výhledu zisku. Nad akcií ale dál visí vyšetřování DOJ.
Shares of UnitedHealth Group (UNH +2.87%) have done something few investors saw coming a year ago: they've quietly climbed back to the doorstep of a fresh 52-week high. As of this writing, the stock trades near $427, up about 80% from its 2025 low of $234.60 -- a rebound that has outpaced the S&P 500. The collapse that defined last year -- soaring medical costs, a withdrawn forecast, and a sudden change at the top -- has given way to a steady, almost uneventful recovery.
The numbers behind that recovery are real. But after a move this size, the question isn't whether the business is recovering. It's whether the stock still offers investors much upside from here.
Image source: Getty Images.
The margins are improving UnitedHealth's first-quarter results showed the turnaround taking hold where it matters most: the medical care ratio, or the share of premium revenue an insurer pays out in medical claims. That figure fell to 83.9% from 84.8% a year earlier.
For a company in the competitive life insurance business, a single percentage point can be the difference between a struggling insurer and a profitable one.
Management credited the improvement to a mix of pricing discipline, tighter medical cost management, and favorable reserve development. That last piece is worth flagging -- favorable reserve development means past claims came in lighter than the company had set aside for, and it isn't a tailwind a company can lean on every quarter.
The bigger driver, however, is more deliberate.
UnitedHealthcare, the company's insurance arm, repriced its Medicare Advantage plans and accepted membership attrition as part of its focus on margin recovery. That trade-off shows up plainly in the top line: first-quarter revenue rose just 2% year over year to $111.7 billion, a sharp slowdown from the 12% growth the company posted for all of 2025. UnitedHealth is shrinking parts of its book to repair its margins -- and so far, it's working.
The flip side is that a business growing revenue at just 2% has far less room to absorb a surprise.
"The historic disciplines and innovations of UnitedHealthcare are rounding back into place," CEO Stephen Hemsley said on the company's first-quarter earnings call.
The progress has been rewarded. Management raised its full-year 2026 non-GAAP (adjusted) earnings guidance to more than $18.25 per share, and the company generated $8.9 billion in operating cash flow during the quarter, up sharply from a year earlier. After a year in which almost nothing went right, the operational story has clearly stabilized.
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The overhang that won't lift But here's the problem.
The recovery is no longer a secret, and two things still stand between UnitedHealth and a clean bill of health.
The first is legal. UnitedHealth has disclosed that it's responding to both criminal and civil Department of Justice investigations into how it reportedly bills the government for Medicare Advantage members. The probe cuts to the heart of how Medicare Advantage insurers make money -- the way they document patient diagnoses to set their federal reimbursement. This is the kind of risk that's hard to handicap. It could end in a manageable settlement, or it could reshape the economics of the company's most important growth engine. Investors don't know yet, and an unresolved investigation like this can shadow a stock for years.
Then there's the stock's valuation. Sure, near its 2025 low, UnitedHealth shares traded at just 13 times its 2026 adjusted earnings guidance -- a valuation that priced in real fear. Today, the stock's forward price-to-earnings ratio of 23 shows a stock with far more optimism priced in.
Ultimately, for shares to do well from here, the company will need to see continued margin improvement and stabilization in its membership trends. Additionally, for the bull case to go well, UnitedHealth investors should hope that the legal cloud plaguing the company is resolved reasonably.
UnitedHealth is a high-quality business that appears to be steadily improving. But the stock that was an obvious bargain near $235 simply isn't one near $427. With a serious investigation still unresolved and the easy money already made, I'd rather watch this one from the sidelines.
Shares of UnitedHealth Group (UNH +2.87%) are up 25% this year and are still trading near its 52-week high. The healthcare giant's stock offers a good combination of revenue growth, a solid dividend, and strong insulation against economic downturns.
The company has bounced back significantly after it had a bad earnings miss and suspended guidance in April 2025, a move that was followed by the resignation of then-CEO Andrew Witty.
Here are reasons why the stock remains a good buy.
Image source: Getty Images.
It's a great dividend stock UnitedHealth Group just raised its dividend by 5% to $2.32 per quarterly share, marking 17 consecutive years of raises, and at the stock's current price, it yields around 2.3%.
The dividend increase shows the company is confident in its ability to handle rising medical costs and other changes. The company produced $19.7 billion in operating cash flow in 2025, equal to 1.5x net income. Cash from operations has consistently exceeded net income.
The stock is a solid choice for total-return and income-focused investors. The company generates massive, highly reliable free cash flow that supports aggressive share buybacks, as it expects to repurchase $2 billion in shares by the end of the second quarter and to maintain a consistently growing dividend.
Today's Change
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427.47
Two segments balance the business Unlike pure-play health insurers, UnitedHealth Group operates a highly resilient, diversified model split into two powerhouse segments. One is UnitedHealthcare, its huge insurance arm that served 49.1 million people in the first quarter, including individuals, employers, and government programs.
The other is Optum, its health services business that provides pharmacy benefits, data analytics, and direct patient care to more than 123 million people.
In the first quarter, the UnitedHealthcare side was driving its business. The company reported overall revenue of $111.7 billion, up 2% year over year, with UnitedHealthcare reporting $86.3 billion, up 2% from the first quarter of 2025. Earnings per share (EPS) were $6.90, up less than 1% compared to the same period a year ago, and earnings from UnitedHealthcare again were the catalyst, with earnings from operations of $5.7 billion, up 9%, year over year.
It is still selling at an attractive valuation Though UnitedHealth Group's shares have risen more than 25% this year, its shares are still trading at around 31 times earnings and around 22 times future earnings.
The advantage of healthcare stocks is that people need medical care regardless of the state of the economy. Concerns about rising costs combined with no reimbursement raises on the way for 2027 have compressed the company's valuations into reasonable territory compared to its historical averages and put it in a good position compared to its nearest competitors.
It has strong pricing power that reacts to change UnitedHealth Group's medical cost ratio was 83.9% for the first quarter, down 90 basis points from the same period a year ago. That's the good news. The bad news is that medical cost ratios have been increasing for insurers over the past several years, due to changes under the Affordable Care Act, the rising number of older adults seeking medical care, the rising costs of diabetes and weight-loss medications, and medical advancements tied to high-cost medical devices.
UnitedHealth has a clear playbook for managing the recent industrywide spike in medical utilization. Because commercial plans renew continuously throughout the year, management has already begun implementing a strongly responsive pricing strategy. In its Medicare Advantage plans, the company is adjusting premium pricing, streamlining provider networks, and utilizing advanced tools to filter unnecessary clinical costs. That's a key point because UnitedHealth is the largest Medicare Advantage provider, serving more than 8 million people. In April, CMS finalized a 2.48% payment increase for 2027 Medicare Advantage plans, which was more than what was initially proposed, but doesn't solve long-term price concerns, industry executives said.
The company is using AI to trim administrative costs UnitedHealth Group has launched a massive $1.5 billion enterprise-wide artificial intelligence (AI) initiative. By transitioning traditional, fractured processes to AI-first operations, management expects a 2-to-1 return on investment, translating into nearly $1 billion in direct operating-cost reductions.
The company is deploying artificial intelligence across three core operational fronts to aggressively defend and expand its operating margins. It is using generative AI to handle the first point of contact, reducing the need for expensive call center networks.
Launched in March, its digital companion Avery is a generative AI assistant handling inquiries for employers and Medicare Advantage members. It is set up to resolve complex questions about coverage limits, claim status, and copay estimates instantly. By migrating member navigation to self-service AI, UnitedHealth has already reduced call center volume by 25% as of the first quarter, eliminating significant structural overhead.
It is also using AI to simplify and speed up prescription approval times from eight hours to under 30 seconds and considerably drop processing costs. The company sees its AI engine as not only saving money but also, when outsourced, adding revenue.
About a third of UNH's $1.5 billion AI spend is dedicated to transforming OptumInsight into an AI-first software firm. The data analytics, payment integrity, and fraud-detection models trained internally on UNH's massive data pool are being packaged and sold directly to other hospital networks and insurers, turning an internal cost-saver into a high-margin revenue stream.
Akcie UnitedHealth Group od konce března vzrostly o zhruba 57 % na 408 USD za akcii. K růstu přispělo zvýšení plateb Medicare Advantage o 2,48 % pro rok 2027.
After falling to $255 per share in late March, UnitedHealth Group (UNH 0.69%) stock has been on a heater. The leading health insurer has skyrocketed some 57% since March 30 and is currently trading at $408 per share. It went from being down 22% year to date as of March 30 to being up 24% year to date as of June 22.
The major catalyst for the recent spike is a move by the Centers for Medicare & Medicaid Services (CMS) to raise Medicare Advantage insurers' rates by 2.48% in 2027.
And Jim Cramer, host of CNBC's Mad Money, thinks it has more room to run. He said on his show recently:
Finally, we have UnitedHealth. It's another managed care play that's up for the same reason as Humana. The stock pulled back this afternoon, but the legendary CEO, Steve Hemsley, is back, and he's so good. A brutal stint of bad management before he got there. He's turning it around. UnitedHealth, buy it.
Image source: Getty Images.
Cramer also called UnitedHealth a "textbook safety stock." Is he right?
UNH is still a bargain The Mad Money host is absolutely on the money with this call. UnitedHealth stock is still a bargain, even after its recent surge.
While its valuation has crept up, it is still trading at just 21 times forward earnings. That's because it's still down considerably from the near-$600-per-share price it hit just over a year ago in April 2025, before the tariff crash.
Today's Change
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Current Price
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406.43
It may not return to $600 anytime soon, but 77% of Wall Street analysts rate it a buy, with a median price target of $420 per share.
Here are four quick reasons why UnitedHealth stock is a buy:
It smashed earnings estimates last quarter. It raised its 2026 earnings guidance. It's got a high yield and a consistent dividend. As a major healthcare stock, it tends to perform well in market downturns, making it a great defensive play. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
UnitedHealth plánuje investovat 3 miliardy USD do umělé inteligence v letech 2026 a 2027. Technologie už podle firmy přináší návratnost 2:1 a letos může snížit provozní náklady téměř o 1 miliardu USD.
UnitedHealth says AI is driving 2-to-1 returns and could cut operating costs by almost $1 billion this year. Summary
AI is becoming central to UnitedHealth’s cost-cutting and efficiency push.
UnitedHealth Group UNH is putting artificial intelligence at the center of its turnaround strategy as the company looks to recover from last year's profit collapse. The largest US health insurer plans to invest $3 billion in AI across 2026 and 2027, with executives saying the technology is already generating a 2-to-1 return by automating manual work, improving efficiency, and potentially reducing friction for patients.
The company is using AI across a wide range of administrative tasks, from reading medical chart summaries to nurses on the road, to analyzing millions of customer calls, to testing AI agents that call doctors' offices to schedule appointments. UnitedHealth also expects AI to help reduce operating costs by almost $1 billion this year, while Optum Real, a coverage-checking system for medical providers, has processed about a billion transactions since launching last year.
Wall Street appears focused on the potential cost savings, with Morgan Stanley analysts noting that insurers and medical providers spend $80 billion a year on administrative transactions. Still, UnitedHealth may need to convince a skeptical public that AI will benefit patients, not just the bottom line, as the company faces lawsuits over insurer algorithms and scrutiny after a federal inspector general report linked a naviHealth algorithm to higher denial rates that were almost always overturned on appeal.
Berkshire Hathaway v 1. čtvrtletí zcela opustila UnitedHealth a David Tepper svůj podíl výrazně snížil. Ve stejném kvartálu UNH vykázala upravený EPS 7,23 USD a tržby 111,72 miliardy USD.
Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B | BRK.B Price Prediction) fully exited its UnitedHealth Group (NYSE:UNH) position in Q1 2026, and David Tepper’s Appaloosa Management meaningfully reduced its UNH stake in the same quarter. Chase Coleman also sold UnitedHealth shares in Q1. Meanwhile, the sell-side stayed bullish, with a consensus target of $407.38 and 22 buy or strong buy ratings against a single sell.
Two of the most scrutinized capital allocators in the business walked out the same door, in the same quarter. That is worth thinking about.
What Berkshire and Tepper walked away from UNH is not a broken business. Q1 2026 produced adjusted EPS of $7.23 against a $6.61 consensus, revenue of $111.72 billion, and a medical care ratio that improved 90 basis points to 83.9%. Management raised full-year adjusted EPS guidance to greater than $18.25. The stock is up 22.66% year to date through June 17 and 32.82% over the trailing year.
The path to get there involved shrinking. UnitedHealthcare lost 965,000 Medicare Advantage members in Q1 2026 alone, and the 2026 plan calls for a 2.3 to 2.8 million membership contraction from exits of unprofitable contracts. Margin recovery achieved by shedding members is real. It is also structurally different from margin recovery driven by pricing power.
The thesis behind the exits Three forward-looking pressures appear to be sitting on the trade. First, preliminary 2027 Medicare Advantage rate announcements came in below expectations, the same catalyst SGA Global Growth Fund cited on June 17, 2026 when it sold its entire UNH stake. Second, a federal OIG report on June 12, 2026 documented post-hospital care denial rates of 51 to 80% at UnitedHealth’s Medicare Advantage plans, well above peers. Fairview Health Services said the same week it will stop accepting UnitedHealthcare Medicare Advantage in 2027, affecting more than 11,000 patients.
Third, Optum Health’s profitability is rebuilding slower than the Street modeled. Q1 2026 Optum operating earnings of $3.3 billion still trail the prior-year $3.89 billion, even after Q3 2025’s collapse to $255 million from $2.2 billion. Forward P/E sits at 22x, expensive against quarterly earnings growth of 0.7% and revenue growth of 2%.
What this signals for a retirement portfolio Institutional exits do not automatically equal a verdict. Berkshire trims names for tax, concentration, and opportunity-cost reasons that have nothing to do with a company being doomed. Tepper rotates aggressively and frequently. Both have been wrong on individual names. UNH’s 0.65 beta and 2.15% dividend yield still make it a defensive holding by construction.
The useful question is whether the bull case rests on assumptions Berkshire and Tepper rejected. Analyst price targets are anchored to Q1 2026’s margin reset and a clean ramp into 2027. If preliminary 2027 Medicare Advantage rates land where they hint, and if denial-rate scrutiny translates into either rate pressure or forced approvals, both feed straight back into the medical care ratio. That single variable took UNH down to a 52-week low of $228.48.
For a retirement-focused investor, the takeaway is narrower than copying the billionaires. The bullish thesis depends on a 2027 rate environment that two sophisticated holders apparently no longer want to underwrite. Worth weighing before deciding whether the year-to-date rally is the recovery itself or the exit ramp.
UnitedHealth má podle článku navrch díky diverzifikovanému modelu, silnější finanční pozici a širším růstovým možnostem než Humana. Humana sice roste v Medicare a CenterWell, ale ziskovost dál tlačí marže a náklady.
Key Takeaways UNH benefits from insurance, care delivery, pharmacy and technology businesses under one platform.UNH is expanding AI initiatives and value-based care efforts to improve efficiency and growth.Humana's Medicare membership and CenterWell revenues rose strongly, but EPS estimates remain pressured. UnitedHealth Group Incorporated (UNH - Free Report) and Humana Inc. (HUM - Free Report) are leading U.S. managed-care and health insurance companies operating in an industry that is navigating higher medical-cost trends, evolving reimbursement policies and changing regulatory requirements. Both companies have significant exposure to the Medicare Advantage market, making them key participants in one of the fastest-growing segments of the healthcare insurance landscape.
While UNH and HUM compete within the same sector and face many of the same industry dynamics, their business models and strategic priorities differ. UnitedHealth benefits from a diversified healthcare platform that spans insurance, health services and care delivery, whereas Humana maintains a greater focus on government-sponsored healthcare programs, particularly Medicare-related offerings. These distinctions influence their growth profiles, profitability trends and overall market positioning.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better bet now.
The Case for UNHUnitedHealth's growth is supported by the breadth of its healthcare ecosystem, which combines insurance, pharmacy services, care delivery and healthcare technology under one platform. The company generated total revenues of $111.7 billion, which grew 2% year over year in the first quarter of 2026, benefiting from pricing actions, a favorable member mix and improving operational execution across its businesses.
UnitedHealthcare unit remains a key earnings driver for the company, supported by its leading positions in Medicare Advantage, commercial insurance and government-sponsored programs. Recent pricing actions have improved alignment between premiums and healthcare costs, while a greater focus on affordability initiatives and cost management is helping stabilize margins. The business is also expanding digital engagement, with nearly half of its members now using its digital platform and digital interactions becoming the primary channel for customer service. In the first quarter of 2026, the unit’s revenues rose 1.9% year over year.
Another major contributor to future growth is Optum Health, where the company continues to strengthen its value-based care models. The segment served around 93 million people in first-quarter 2026. Greater care coordination, improved patient navigation and enhanced clinical oversight are helping reduce unnecessary hospital and post-acute care utilization, supporting better health outcomes while improving operating performance.
Technology is becoming another key pillar of UnitedHealth's strategy. The company plans to invest nearly $1.5 billion in AI-related initiatives in 2026 to streamline administrative processes, improve customer experiences and increase productivity across its operations. Meanwhile, Optum Insight is expanding AI-driven solutions for healthcare providers and payers, creating an additional avenue for growth beyond traditional insurance operations.
Alongside these efforts, investments in provider connectivity, automation and streamlined authorization processes are helping improve member experiences, drive operational efficiencies and strengthen the long-term competitiveness of the insurance segment. The company benefits from significant scale and diversification, although persistent medical-cost inflation and regulatory changes could weigh on earnings growth in the near term. UNH beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 0.8%.
Financially, UNH is in a solid position. It ended the first quarter of 2026 with $31.2 billion in cash and short-term investments, sufficient to cover its short-term borrowings and current maturities of long-term debt, which stands at $6.5 billion. Its total debt-to-capital of 40.75% is below HUM’s 42.9% and the industry’s 42.9%. In the first quarter of 2026, it paid dividends worth $2 billion.
The Case for HUMHumana's growth is being driven by continued expansion in its Medicare-focused businesses and the increasing scale of CenterWell, its healthcare services platform. In the first quarter of 2026, total revenues rose 23.5% year over year, supported by strong growth in Medicare Advantage and Medicare Part D membership. Total Medicare membership increased to nearly 11 million members, while Medicare Advantage membership climbed 23% year over year to 7.1 million in the quarter.
CenterWell remains a key strategic growth engine for Humana as the company continues to deepen its presence across primary care, home health and pharmacy services. The segment generated $6.1 billion in revenues in the first quarter of 2026, up nearly 20% from the prior-year period. By strengthening the integration between healthcare services and insurance operations, CenterWell supports member engagement, care coordination and long-term growth opportunities beyond the company's core insurance business.
The company is emphasizing disciplined pricing, benefit optimization and cost-management initiatives to improve Medicare Advantage margins following a period of elevated healthcare utilization. This approach is designed to strengthen earnings quality and support a more sustainable long-term growth profile while maintaining competitiveness in its core markets. It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 3.8%.
HUM is also investing in data interoperability, digital capabilities and quality-improvement initiatives that support its integrated care model. These efforts are intended to enhance healthcare outcomes, improve operational efficiency and strengthen Star Ratings performance over time, which remains a key driver of reimbursement levels, member retention and long-term profitability. However, competitive pressures and ongoing cost trends remain key factors that could influence earnings and margin recovery in the years ahead.
Nevertheless, as of March 31, 2026, the company had cash and cash equivalents of $5 billion, with short-term debt of $1.7 billion only, which implies a solid capital position. Humana has been returning excess capital to its shareholders in the past several years. It repurchased common shares in connection with employee stock plans for $107 million in the first quarter of 2026. The company also paid dividends of $107 million during the quarter. However, its dividend yield of 1% is below UNH’s 2.3%.
Price Performance ComparisonIn the year-to-date period, HUM shares have outperformed UNH, the industry and the S&P 500.
Price Performance – UNH, HUM, Industry & S&P 500
Image Source: Zacks Investment Research
How Do Estimates Compare for UNH & HUM?The Zacks Consensus Estimate favors UNH at this stage. The consensus estimate for UNH’s 2026 earnings indicates a 12.1% increase from a year ago. Over the past 60 days, the estimate has witnessed 14 upward revisions with no downward adjustments. Meanwhile, the consensus estimate for revenues suggests a 0.9% decline.
On the other hand, the Zacks Consensus Estimate for HUM’s 2026 revenues indicates 25.3% year-over-year growth, but the same for EPS signals a massive 47.4% decline. Over the past 60 days, the estimate has seen three upward revisions with two downward adjustments.
Valuation: UNH vs. HUMFrom a valuation standpoint, UnitedHealth may appear slightly more expensive than the industry at first glance, but it represents its size, operational consistency and business diversification. Humana’s stock currently trades at a higher multiple than UNH. UnitedHealth is currently priced at 20.57X forward 12-month earnings, compared to Humana’s 30.47X, both above the industry average of 17.46X.
Image Source: Zacks Investment Research
UNH currently trades below its average analyst price target of $412.56, implying a 2.9% potential upside from current levels. Meanwhile, HUM trades above its average analyst price target of $300.26, implying a 16.7% potential downside from current levels.
ConclusionBoth UnitedHealth and Humana are leading managed-care companies with strong positions in the Medicare Advantage market. Humana is benefiting from robust membership growth and the expansion of CenterWell, but its earnings recovery remains dependent on improving Medicare Advantage margins and reimbursement dynamics.
UnitedHealth, however, appears to have the edge due to its diversified business model, stronger financial position and broader growth opportunities across insurance, healthcare services and technology. Despite ongoing regulatory and cost-related pressures, its superior earnings growth outlook, attractive valuation and higher dividend yield make UNH the stronger healthcare stock at present, even though both companies currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
