UnitedHealth Group (UNH) earnings Q1 2026

UnitedHealth Group on Tuesday reported first-quarter profit above forecasts and raised its 2026 profit outlook as the company better manages high medical costs and streamlines its operations.

The nation’s largest private insurer said it expects adjusted earnings in 2026 to be above $18.25 per share, down from its previous outlook of more than $17.75 per share. UnitedHealth is maintaining its full-year revenue forecast of more than $439 billion, which the company said in January reflects “rightsizing across the enterprise.”

Here’s what the company reported: first quarter Compared to Wall Street expectations, according to a survey of analysts by LSEG:

• Earnings per share: $7.23 adjusted, expected $6.57
• Revenues: 111.72 billion dollars, while the expectation was 109.57 billion dollars

UnitedHealth is relying on a new leadership team to execute a turnaround plan. The strategy includes reducing membership, selling the Optum health care unit’s UK business, investing heavily in artificial intelligence, streamlining access to care and increasing transparency to restore profitability (as well as the company’s reputation) after a series of setbacks over the past two years.

The company reported net income of $6.28 billion, or $6.90 per share, for the first quarter, compared to $6.29 billion, or $6.85 per share, in the same period a year ago. UnitedHealth earned $7.23 per share when excluding items such as business divestitures, restructuring and the expected reduction of reserves for unprofitable contracts.

Revenue rose to $111.72 billion, up from $109.58 billion in the prior-year quarter. The company’s insurers, UnitedHealthcare and Optum, beat analysts’ sales estimates for the quarter, according to StreetAccount.

In particular, UnitedHealth appears to be better at dealing with higher medical costs; This problem is one that has dogged the insurance industry for more than two years. Insurers, especially those that run Medicare plans privately, have been strained by the influx of people seeking care after the pandemic because of costly specialty drugs like GLP-1s, which they delayed, among other factors.

UnitedHealth’s medical benefit ratio (a measure of total medical expenses paid based on premiums collected) was 83.9% in the first quarter. This is an improvement from the 84.8% reported in the same period the previous year. A lower ratio generally indicates that the company collected more premiums than benefits paid, leading to higher profitability.

Analysts were expecting an 85.5% rate for the quarter, according to StreetAccount.

UnitedHealth said in a statement that the first-quarter rate reflected strong management of medical costs and the release of funds previously set aside for unprofitable Optum contracts. However, this improvement was partially offset by “ever-increasing” medical costs, the company said.

“We continue to help simplify and modernize healthcare for the people and care providers we serve, delivering greater value, affordability, transparency and connection,” UnitedHealth CEO Stephen Hemsley said in a statement. he said.

The results come just weeks after the Trump administration finalized a much larger 2027 payment rate increase than originally proposed for Medicare Advantage plans by boosting shares of UnitedHealth and other health insurers.