UnitedHealth Q4 EPS Beats by $0.02, Revenue Misses by $160M as Guidance Signals Decline
UnitedHealth reported Q4 EPS of $2.11, beating estimates by $0.02, while revenue of $113.22B missed $113.38B forecasts and FY26 revenue guidance above $439B implies a decline. Jefferies cut its target from $418 to $340 and Oppenheimer lowered to $385, leaving the average analyst target at $376.75.
1. Lee Financial Co Takes Initial Stake and Institutional Ownership Shifts
In the third quarter, Lee Financial Co purchased 3,390 shares of UnitedHealth Group, representing a new position valued at approximately $1.17 million, according to its latest Form 13F filing with the SEC. During the same period, Brighton Jones LLC increased its holdings by 176.2%, adding 28,231 shares to reach 44,249 shares, while Revolve Wealth Partners LLC boosted its stake by 137.1% through the acquisition of 2,324 additional shares for a total of 4,019 shares. Other firms establishing or expanding positions include CMT Capital Markets Trading GmbH (new stake worth $340,000), Patriot Financial Group Insurance Agency LLC (up 42.5% to 5,312 shares), and Montz Harcus Wealth Management LLC (up 12.2% to 679 shares). As of the end of the quarter, hedge funds and institutional investors collectively held 87.86% of UnitedHealth Group outstanding stock.
2. Analysts Adjust Ratings and Price Targets
Over the past month, prominent sell-side firms refined their outlook on UnitedHealth Group shares. Jefferies Financial Group narrowed its target from $418 to $340 while maintaining a buy recommendation, and Oppenheimer cut its objective from $415 to $385 but upheld an outperform rating. TD Cowen raised its target from $335 to $338 and kept a hold stance, and KeyCorp reiterated an overweight rating. Zacks Research upgraded to hold from strong sell. Among the 29 analysts covering the company, one holds a strong buy, seventeen a buy, nine a hold and two a sell, resulting in an average Moderate Buy consensus and an aggregate target of $376.75.
3. Q4 Results and FY 2026 Guidance Highlight Slower Growth
In its fourth-quarter report, UnitedHealth Group delivered $2.11 in adjusted earnings per share, narrowly topping consensus by $0.02, on revenues of $113.22 billion, just shy of analyst estimates by $160 million. Quarterly revenue grew by 12.3% year-over-year, while net margin stood at 2.69% and return on equity reached 14.79%. Management’s guidance for fiscal 2026 calls for earnings around 17.75 per share, below the street’s average forecast of 29.54 EPS, and projects annual revenues modestly below the prior year’s $447.6 billion. Investors will closely monitor the company’s ability to reaccelerate top-line growth and margin expansion in its two core units, UnitedHealthcare and Optum.