UnitedHealth Group (UNH) Q2 2026 earnings

UnitedHealth Group on Thursday reported second-quarter earnings that topped previous estimates and raised its full-year profit outlook, as the company better manages rising medical costs and uses artificial intelligence to help streamline operations.

The largest private insurer in the United States said it expects 2026 adjusted earnings of between $19.50 and $20 per share, up from a previous forecast of more than $18.25 per share. UnitedHealth maintains its full-year revenue guidance of more than $439 billion. But Chief Financial Officer Wayne Davidt said in an interview that he expects the company to do “even better” in light of its second-quarter results.

However, he said medical costs in the quarter were still “high compared to historical levels” — an issue that has haunted the broader insurance industry for more than two years.

“These results are not a reflection of trend bending or control, but rather our efforts to start lowering what is already a high number,” Davidt said.

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

• EPS: $6.38 was revised from $4.90 expected
• profit: $112.03 billion compared to $110.85 billion expected

The company’s shares jumped more than 7% in morning trading.

UnitedHealth’s turnaround plan is gaining momentum following a restructuring and executive shakeup designed to address challenges in the industry. The healthcare giant is stabilizing margins by trimming memberships, exiting unprofitable contracts and pumping $1.5 billion into artificial intelligence to streamline operations.

DeVeydt said the company is using artificial intelligence to improve efficiency and patient care. For example, AI helps speed up processes such as prior authorizations and improve payment accuracy by detecting potential fraud, waste and abuse. This can help reduce costs while improving patient care. AI tools do not determine whether care has been approved or denied, he said.

“I would say transformation, and I would emphasize that in our culture, it is already happening… This transformation is translating into strong, strong profits,” Davidt told reporters. “So it shows that when we can do things the way we think they should be done, we can be a solution and be profitable at the same time.”

But he stressed that the transformation is “a journey that takes several years.”

The company recorded net income in the second quarter of $5.48 billion, or $6.04 per share, compared to $3.41 billion, or $3.74 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 $6.38 per share.

Revenues rose to $112.03 billion from $111.62 billion in the previous quarter. The company’s insurer, UnitedHealthcare, and its Optum healthcare unit topped analysts’ sales estimates for the quarter, according to StreetAccount.

UnitedHealth said rising health care costs are forcing insurers to raise premiums and adjust benefits, contributing to membership losses in both Affordable Care Act exchange plans and privately run Medicare Advantage plans. The company said revenues remained stable because higher prices offset declines in enrollment.

But Davidt said the dynamism “is not a good thing for the system in the long run.”

UnitedHealthcare served 48.5 million people in the second quarter, down 525,000 from the previous quarter. DeVeydt attributed the membership decline largely to affordability pressures caused by rising health care costs, and predicted a loss of approximately 500,000 ACA exchange members and 1.1 million Medicare Advantage members in 2026.

Insurers, especially those running Medicare Advantage plans, have been pressured by the influx of people seeking care, which has led to delays in post-pandemic drugs and high-cost specialty drugs like GLP-1s, among other factors.

But UnitedHealth’s medical benefits ratio — a measure of total medical expenses paid compared to premiums collected — was 86.7% in the second quarter. This is an improvement over the 89.4% 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 88.5% for the quarter, according to StreetAccount.

The findings come about a year after UnitedHealth revealed it was facing a Justice Department investigation into its Medicare billing practices.

DeVeydt said the company has no updates but continues to cooperate with the government.