UnitedHealth Group Reports First-Quarter Earnings Exceeding Estimates and Raises 2026 Profit Outlook

UnitedHealth Group reported first-quarter earnings on Tuesday that exceeded analysts' estimates, according to a company release. The health insurer posted adjusted earnings per share of $7.23, compared to the expected $6.57 based on a survey of analysts by LSEG.

Revenue for the quarter reached $111.72 billion, surpassing the anticipated $109.57 billion. The company raised its 2026 adjusted earnings outlook to more than $18.25 per share, up from a prior forecast of more than $17.75 per share. UnitedHealth maintained its full-year revenue guidance of greater than $439 billion, which it attributed to adjustments across the enterprise.

income for the first quarter was $6.28 billion, or $6.90 per share, compared to $6.29 billion, or $6.85 per share, in the same period a year earlier. Excluding certain items such as business divestitures and restructuring, the adjusted earnings were $7.23 per share.

Revenue increased from $109.58 billion in the prior-year quarter. The medical benefit ratio, which measures total medical expenses relative to premiums collected, was 83.9% for the quarter. This figure improved from 84.8% in the year-earlier period and was better than the 85.5% expected by analysts, according to StreetAccount.

The company stated that this reflected management of medical costs and the release of reserves for unprofitable contracts, though it was partially offset by elevated medical costs.

the UnitedHealthcare insurance unit and the Optum health-care unit exceeded analysts' sales estimates for the quarter, based on StreetAccount data. The company is implementing a strategy that includes reducing membership, selling the UK business of its Optum unit, investing in artificial intelligence, streamlining access to care, and increasing transparency.

“We are continuing to help simplify and modernize health care for the people and care providers we serve, bringing greater value, affordability, transparency and connectivity," UnitedHealth CEO Stephen Hemsley said in the release.”

The results follow challenges in the insurance industry, including increased medical costs from delayed care post-pandemic and high-cost drugs. UnitedHealth noted it is addressing these issues to improve profitability. The Trump administration recently finalized a 2027 payment rate increase for Medicare Advantage plans that was larger than initially proposed.