UnitedHealth raises profit forecast again as turnaround efforts gather pace
UNH•UnitedHealth raised its 2026 adjusted profit forecast to at least $20.50 per share from a previous range of $19.50 to $20. Third-quarter adjusted profit was $4.69 per share, while its medical cost ratio improved to 88.4%.
1. Higher profit forecast
UnitedHealth raised its 2026 adjusted profit forecast for the third time this year, citing tighter medical-cost spending in its insurance business and improved margins in Optum. The company now expects adjusted profit of at least $20.50 per share, above analysts’ average estimate of $19.86.
2. Quarterly results
Third-quarter adjusted profit rose to $4.69 per share from $2.92 a year earlier, beating the $4.14 analyst estimate. Revenue of $112.69 billion also topped expectations of about $111.4 billion, and operating income increased to $6.6 billion from $4.3 billion.
3. Costs and membership
The medical cost ratio was 88.4%, compared with 89.90% a year earlier. A $610 million reserve benefit lowered quarterly medical costs, reflecting lower-than-expected claims for earlier services. UnitedHealthcare revenue fell to $86.3 billion from $87.1 billion; membership also declined across its employer-sponsored, Medicaid and Medicare Advantage businesses.
