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UnitedHealth Group raises profit forecast on third-quarter earnings beat
Yahoo Finance • • business
Key Points:
- UnitedHealth Group raised its 2026 adjusted profit per share forecast to at least $20.50, up from a previous range of $19.50 to $20, surpassing analyst expectations of $19.86.
- The company reported a strong third quarter with adjusted earnings of $4.69 per share, significantly higher than the $2.92 from a year earlier and above the $4.14 analyst estimate.
- UnitedHealth improved its medical cost ratio to 88.4% in Q3, better than both analyst estimates and the previous year's 89.9%, due to plan design, pricing changes, and cost controls.
- Despite a slight decline in insurance business revenue to $86.3 billion, operating income rose to $6.6 billion from $4.3 billion, driven mainly by improved margins in its Optum clinical care and health technology units.
- Membership in UnitedHealthcare's employer-sponsored and Medicaid plans declined due to attrition and eligibility changes, with a notable exit of 935,000 members from its Medicare Advantage business since the end of 2025.
