UnitedHealth raises full-year adjusted income guidance, sees growth in 2026

Investing.com - UnitedHealth Group has lifted its annual adjusted income per share forecast, citing quarterly earnings which topped Wall Street expectations, as CEO Stephen Hemsley aims to reposition the health insurance giant for "durable and accelerating growth" next year.

Like other healthcare firms, UnitedHealth has been grappling with increased medical costs, driven in part by higher reimbursement expenses related to patients seeking follow-up visits with specialists.

Government pressure has also intensified on UnitedHealth’s strategy to slow spending by requiring patients to obtain prior authorization before receiving needed care. These types of practices have come under heavy scrutiny following the murder of top UnitedHealth executive last year, prompting pledged changes across the health insurance industry.

Facing these challenges, UnitedHealth surprised investors in April when it unveiled its first earnings miss since 2008.

Hemsley, who took over as CEO in May after helming UnitedHealth from 2006 to 2017, has broadly garnered the support of some of the company’s most prominent investors, including Warren Buffett’s Berkshire Hathaway.

Against this backdrop, UnitedHealth posted a medical care ratio of 89.9%, below Bloomberg consensus projections of 90.7%. The metric gauges the percentage of an insurer’s premium revenue spent on medical claims and quality improvement activities. A higher figure indicates that more premium revenue is being used for patient care.

Partly buoyed by the lower-than-expected expenses, third-quarter adjusted per-share profit came in at $2.92, versus estimates of $2.83. Consolidated revenues were up 12% against a year ago to $113.2 billion, compared to expectations of $113.03 billion.

UnitedHealth subsequently raised its annual adjusted net income per share estimate to at least $16.25, up from its previous outlook of at least $16.

“We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond, and our results this quarter reflect solid execution toward that goal,” Hemsley said in a statement on Tuesday.

Shares of UnitedHealth climbed by more than 4% in premarket U.S. trading following the announcement.