UnitedHealth Raises 2026 EPS Forecast to >$18.25 After Q1 EPS Beats by 66¢
UnitedHealth Group raised its 2026 adjusted EPS forecast by $0.50 to above $18.25 after reporting Q1 adjusted EPS of $7.23, beating estimates by $0.66. The company improved its medical cost ratio to 83.9% while Optum’s operating income fell 15% to $3.3 billion following Medicaid membership losses.
1. Strong First-Quarter Results
UnitedHealth Group reported adjusted earnings of $7.23 per share in Q1, exceeding estimates by $0.66, and generated $111.72 billion in revenue, surpassing consensus forecasts.
2. Raised 2026 Profit Forecast
The company lifted its full-year adjusted EPS outlook by $0.50 to above $18.25, up from over $17.75, outperforming the prior consensus of $17.86 per share.
3. Medical Cost Control and Membership Trends
UnitedHealth improved its first-quarter medical cost ratio to 83.9% compared with the 85.7% estimate and anticipates a net loss of 1.3 million Medicaid members, reflecting changing enrollment dynamics.
4. Optum Operating Income Pressure
Optum’s operating income declined 15% to $3.3 billion as heightened medical costs and strategic investments weighed on profitability.