UnitedHealth Group (UNH) Q1 2026 earnings

UnitedHealth Group on Tuesday reported first-quarter earnings that beat estimates and raised its 2026 earnings outlook, as the company better manages rising medical costs and streamlines its operations.

The nation’s largest private insurer said it expects 2026 adjusted earnings of more than $18.25 per share, up from a previous forecast of more than $17.75 per share. UnitedHealth is maintaining its full-year revenue guidance of more than $439 billion, which the company said in January reflects “right sizing across the organization.”

Here’s what the company reported for the first quarter compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: $7.23 was revised from $6.57 expected
• profit: $111.72 billion compared to $109.57 billion expected

UnitedHealth is relying on a new leadership team to execute its transformation plan. The strategy includes reducing memberships, selling Optum’s healthcare unit’s UK business, investing heavily in artificial intelligence, simplifying access to care and increasing transparency to restore profitability – along with the company’s reputation – after a series of hurdles over the past two years.

The company recorded net income in the first quarter of $6.28 billion, or $6.90 per share, compared to $6.29 billion, or $6.85 per share, in the same period last year. Excluding items such as business divestiture, restructuring and an expected reduction in reserves for unprofitable contracts, UnitedHealth had earnings of $7.23 per share.

Revenues rose to $111.72 billion from $109.58 billion in the previous quarter. The company’s insurers, UnitedHealthcare, and Optum topped analysts’ sales estimates for the quarter, according to StreetAccount.

Notably, UnitedHealth appears to be better able to deal with rising medical costs – an issue that has hobbled the broader insurance industry for more than two years. Insurers, especially those running private Medicare plans, have been pressured by the influx of people seeking care, which has led to post-pandemic delays of high-cost specialty drugs like GLP-1s, among other factors.

UnitedHealth’s medical benefits ratio — a measure of total medical expenses paid compared to premiums collected — was 83.9% in the first quarter. This is an improvement from the 84.8% recorded in the same period of the previous year. A lower ratio usually indicates that the company collected more in premiums than it paid in interest, resulting in increased profitability.

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

UnitedHealth said in a statement that the first-quarter ratio reflects its strong management of medical costs and the release of funds previously allocated to unprofitable Optum contracts. But the company noted that this improvement was partially offset by “consistently higher” medical costs.

“We continue to help simplify and modernize health care for the people and caregivers we serve, providing greater value, affordability, transparency and connection,” Stephen Hemsley, CEO of UnitedHealth, said in the statement.

The results come just weeks after the Trump administration finalized a 2027 payment rate increase for Medicare Advantage plans that was much larger than initially proposed, in a boost for UnitedHealth and other health insurance stocks.