UnitedHealth Raises Full-Year Earnings Outlook Following Third-Quarter Beat

02:07 PM EDT, 10/13/2026 (MT Newswires) -- UnitedHealth Group (UNH) increased its full-year earnings outlook Tuesday after reporting better-than-expected third-quarter results and an improvement in its medical care ratio. The health insurance giant now anticipates adjusted earnings of at least $20.50 a share for 2026, up from its previous guidance range of $19.50 to $20. The consensus on FactSet is $19.90. The improved outlook reflects UnitedHealth's performance through the third quarter, "balanced by expected investments in the final months of the year," Chief Financial Officer Wayne DeVeydt said on an earnings call, according to a FactSet transcript. DeVeydt said that the $20.50 figure is "a solid run rate on which to grow" and that the current market consensus for 2027 EPS "may understate the opportunity ahead," with the lower end of the company's 13% to 16% long-term growth target range "a more reasonable starting point." The FactSet consensus for 2027 is $22.58. For the September quarter, the company's adjusted EPS jumped to $4.69 from $2.92 a year earlier, beating Wall Street's $4.14 estimate. Revenue fell to $112.69 billion from $113.16 billion, but topped the Street's $111.31 billion views. The company's medical care ratio, which is used to measure medical costs as a percentage of premium revenue, dropped to 88.4% in the third quarter from 89.9% a year earlier, reflecting better medical cost management, benefit design changes and pricing discipline, among other factors. A lower ratio generally signifies higher profitability. Truist Securities described UnitedHealth's latest financial performance as strong. "We are encouraged by ongoing initiatives across the company, including steps taken around prior authorizations, pharmacy transparency and affordability and increased governance/oversight," the brokerage said in a note to clients. Revenue in the UnitedHealthcare segment -- which provides health benefits, including under Medicare and Medicaid -- decreased to $86.33 billion in the third quarter from $87.07 billion a year earlier. The 2027 Medicare Advantage results of at least 69% of members in 4-plus star plans were in line with company expectations. Medicare Advantage membership has contracted by 935,000 since the end of 2025, according to the statement. UnitedHealthcare Chief Executive Tim Noel told analysts the unit is seeing "positive momentum" across Medicare and Medicaid businesses, though costs remain "stubbornly high" across the sector. The Optum business, which serves the global health care marketplace, saw sales move down to $66.88 billion from $69.18 billion in the third quarter annually. UnitedHealth CEO Stephen Hemsley said on the call that the wider healthcare environment "remains dynamic," with regulatory developments, changing consumer expectations and technological advancement continuing to reshape the industry. "These factors are pressuring basic affordability and access as never before," Hemsley said. Rivals CVS Health (CVS) and Humana (HUM) are expected to report results in November. Elevance Health (ELV) is scheduled to post its earnings later in October. Price: 377.99, Change: -0.53, Percent Change: -0.14