UnitedHealth Group reported third-quarter 2026 revenue of $112.7 billion and earnings from operations of $6.6 billion, while raising its full-year earnings outlook as profitability improved across UnitedHealthcare and Optum.
The company reported diluted earnings of $4.56 per share and adjusted earnings of $4.69 per share.
UnitedHealth Group now expects full-year 2026 earnings of at least $19.50 per share and adjusted earnings of at least $20.50 per share.
Third-quarter earnings from operations increased from $4.3 billion in the prior-year period, driven by what the company described as disciplined execution across UnitedHealthcare and Optum.
Net earnings attributable to UnitedHealth Group shareholders reached $4.11 billion, compared with $2.35 billion a year earlier.
The company generated $5.1 billion in operating cash flow during the quarter, equivalent to 1.2 times net income.
UnitedHealth Group’s medical care ratio improved to 88.4% from 89.9% in the third quarter of 2025.
The improvement reflected medical cost management initiatives, pricing discipline, benefit design changes, and enhancements to care delivery focused on affordability and integrated value-based care.
The quarter included $610 million of favorable prior-period medical reserve development related to 2026 dates of service.
UnitedHealth Group’s operating cost ratio also improved to 12.8% from 13.5% a year earlier, reflecting operating efficiencies while the company continued investing in technology, processes, employees, and consumer and clinician experiences.
The company has repurchased $5 billion of common stock and paid $6.2 billion in dividends through the first nine months of 2026.
UnitedHealthcare served 48.3 million people and generated third-quarter revenue of $86.3 billion.
UnitedHealthcare operating earnings increased to $2.83 billion from $1.81 billion a year earlier, while its operating margin improved to 3.3% from 2.1%.
The company attributed the improvement to benefit changes, pricing discipline, and stronger medical and operating cost management.
UnitedHealthcare Employer & Individual generated $20.2 billion in revenue, compared with $19.9 billion in the prior-year quarter.
Medicare & Retirement generated $42.4 billion in revenue, while Community & State revenue totaled $23.7 billion.
UnitedHealth Group said at least 69% of members were enrolled in four-star or higher Medicare Advantage plans under the 2027 Stars results, in line with expectations.
Optum generated $66.9 billion in third-quarter revenue and $3.73 billion in earnings from operations.
Optum Health posted a significant improvement in profitability, with operating earnings increasing to $735 million from $41 million in the prior-year period.
Its operating margin increased to 3.2% from 0.2%, reflecting stronger operating discipline and medical cost management across its value-based care markets.
Optum Insight revenue increased 3% to $5.5 billion, while operating earnings rose to $1.28 billion from $920 million.
The business continues developing AI-enabled healthcare solutions designed to streamline clinical documentation, improve payment accuracy and speed, and reduce administrative work for clinicians.
Optum Rx generated $39.9 billion in revenue and $1.72 billion in operating earnings, up from $1.55 billion a year earlier.
UnitedHealth Group also outlined several initiatives focused on healthcare affordability and access.
The company has committed $1 billion to the United Health Foundation for initiatives including rural healthcare, maternal and children’s health, and behavioral health.
UnitedHealthcare is also working to eliminate 30% of its current prior approval volume by the end of 2026 and nearly two-thirds of prior approval requirements for pediatric care.
The company is supporting approximately 1,500 rural hospitals and associated clinicians by accelerating payments, shortening reimbursement timelines, and exempting those clinicians from most prior approval requirements.
UnitedHealth Group also plans to expand doula coverage nationally through employer-sponsored plans, with more than 7 million members expected to be eligible by January 2027.
The company has also committed to passing through 100% of manufacturer drug rebate discounts to clients by January 1, 2028 as part of efforts to improve pharmacy benefit transparency and affordability.
KEY QUOTES:
“Our third quarter results reflect the discipline and execution our teams are bringing to every part of our business, as we continue evolving UnitedHealth Group to deliver a simpler, more supportive experience for patients and the clinicians who care for them.”
Stephen Hemsley, Chief Executive Officer of UnitedHealth Group
