UnitedHealth Beats Q3 Estimates and Raises 2026 Adjusted EPS Outlook to at Least $20.50

UnitedHealth Group beat third-quarter expectations on Tuesday before the market opened. Adjusted earnings were $4.69 per share, ahead of the $4.14 analyst consensus compiled by LSEG, and up from $2.92 a year earlier. GAAP earnings per share were $4.56, and net income to common shareholders reached $4.11 billion, up from $2.35 billion in the prior-year quarter. Revenue was $112.69 billion, slightly above the roughly $111.4 billion LSEG expected and a little below the $113.16 billion reported a year ago.

The company raised its full-year 2026 adjusted EPS outlook to at least $20.50, from the $19.50 to $20.00 range set in July. The LSEG consensus for the year had been $19.86. The medical care ratio, the share of premiums spent on medical claims, improved to 88.4% from 89.9% a year earlier, and the company said $610 million of favorable prior-period reserve development related to 2026 dates of service helped the quarter. The operating cost ratio fell to 12.8% from 13.5%, and consolidated operating margin widened to 5.8% from 3.8%.

Shares of UnitedHealth rose in premarket trading, by about 2% in early reports and roughly 4% to about $395 by 9:25 AM Eastern, with peer Humana up about 2% in the same window. Moves in the stock varied by source and by time of day, so the close may differ.

Segment detail was mixed. UnitedHealthcare revenue slipped to $86.3 billion from $87.1 billion, and Optum Health revenue fell 10% to $22.9 billion, even as Optum Health's operating margin improved to 3.2% from 0.2%. Investors may watch whether the medical care ratio holds without reserve releases, how Optum Health revenue trends as the company exits less favorable contracts, and whether the raised outlook leaves room for further upgrades.