Overview
- UnitedHealth, which reported results Tuesday, posted adjusted earnings of $7.23 per share on $111.72 billion in revenue, topping Wall Street forecasts.
- The company raised its 2026 adjusted earnings target to more than $18.25 per share and kept full‑year revenue guidance above $439 billion.
- Its medical benefit ratio improved to 83.9%, signaling tighter control of care spending and reflecting some reserve releases on loss‑making Optum contracts.
- Optum remained a drag, with operating income down 15% to $3.3 billion as the company exits weaker contracts, invests in operations, and plans to sell Optum’s UK business, while Optum Rx revenue rose 2%.
- Executives expect to lose about 1.3 million Medicaid members this year but said retention is tracking better than feared, and a finalized 2027 Medicare Advantage rate increase offers a future tailwind.