UnitedHealth Group Beats Q3 Estimates and Raises Profit Outlook

UnitedHealth Group Incorporated reported third-quarter adjusted earnings per share of $4.69 and revenue of $112.69 billion, surpassing Wall Street expectations of $4.69 and $4.14 per share, respectively. Following three consecutive strong quarters, the company increased its fiscal 2026 adjusted earnings outlook to at least $20.50 per share, up from the previous range of $19.50 to $20.

Despite the financial growth, CFO Wayne DeVeydt noted that medical costs remain elevated compared to historical norms. He attributed these costs to high expenses for specialty pharmacy drugs, inpatient services, and the independent dispute resolution process mandated by the No Surprises Act.

To address these expenses, the company is executing a turnaround plan that includes exiting unprofitable contracts, shrinking membership, and investing in artificial intelligence and value-based care. These efforts have already resulted in a 10% increase in home health admissions and a 15% year-over-year decrease in acute hospital admissions.