UnitedHealth Group rises after earnings beat, boost to full-year profit guidance
The industry has been reeling amid rising costs of care, particularly for government-sponsored plans.
UnitedHealth rose in premarket trading after it reported earnings results that beat Wall Street expectations, a sign the company may be getting its operations under control after a tumultuous year.
The healthcare giant reported adjusted earnings per share of $2.92, higher than the $2.80 analysts polled by FactSet were expecting. UnitedHealth raised its annual adjusted profit guidance to at least $16.25 per share from the at least $16.00 per share it predicted in July, slightly higher than the $16.21 per share analysts were expecting.
UnitedHealth reported a medical loss ratio of 89.9%, less than the 90.7% the Street was penciling in. UnitedHealth and its peers in insurance have been ravaged by higher-than-expected medical costs, particularly for government-sponsored plans, which have been driven by high drug prices, among other factors.
Stephen Hemsley, CEO of UnitedHealth Group, said the company sees “durable and accelerating growth in 2026 and beyond, and our results this quarter reflect solid execution toward that goal.”
Last week, Molina Healthcare — which specializes in providing government-sponsored plans — reported earnings results that severely missed Wall Street expectations, dragging down some of its peers’ stock prices with it. Elevance Health reported earnings that beat expectations last week but warned that Medicaid plans, which UnitedHealth also provides, will be less profitable in 2026. Cigna, another major health insurer, reports on Thursday.
Beyond sector-wide headwinds, UnitedHealth is also grappling with government investigations into its Medicare Advantage practices. The company disclosed this summer that it is cooperating with the Department of Justice on a probe relating to that side of its business.
