UnitedHealth (UNH) Stock: Earnings Beat Sends Shares Higher in Premarket Trading

TLDR

• UnitedHealth Group beat Q3 earnings expectations with adjusted earnings of $2.92 per share versus the $2.80 analyst forecast.
• Revenue climbed to $113.2 billion from $100.8 billion year-over-year, meeting Wall Street expectations.
• The company raised its full-year adjusted earnings guidance to at least $16.25 per share from $16 previously.
• Medical-loss ratio came in at 89.9%, better than the 90.7% analysts predicted, showing improved efficiency in managing healthcare costs.
• Shares jumped 4.1% in premarket trading, with competitors Elevance Health and Humana also seeing gains of 1.6% and 2.5%.

UnitedHealth Group reported third-quarter earnings that topped analyst expectations on Tuesday morning. The healthcare giant posted adjusted earnings of $2.92 per share, beating the $2.80 forecast from analysts.

Revenue reached $113.2 billion, up from $100.8 billion in the same quarter last year. The figure matched Wall Street’s projections of $113 billion.

The company raised its full-year adjusted earnings guidance to at least $16.25 per share. This marks an increase from the previous floor of $16 per share set in July.

UnitedHealth Group Incorporated, UNH

Net income came in at $2.35 billion, down from $6.06 billion a year ago. The year-over-year decline reflects the company’s ongoing recovery efforts following its spring financial troubles.

Performance Across Business Segments

Revenue at the UnitedHealthcare insurance segment jumped 16% to $87.1 billion. This represented strong growth in the company’s core insurance business.

Optum Health saw flat revenue year-over-year at $25.9 billion. OptumRx, the pharmacy benefits manager division, posted revenue of $39.7 billion, up 16% from last year.

The medical-loss ratio landed at 89.9%. This came in below the 90.7% analysts had expected and shows better-than-anticipated management of healthcare costs.

CEO Stephen Hemsley said healthcare utilization was in line with expectations. He noted the company remains focused on strengthening performance and positioning for growth in 2026 and beyond.

Market Reaction and Recent History

Shares rose 4.1% in premarket trading following the earnings release. Competitors Elevance Health and Humana also gained ground, climbing 1.6% and 2.5% respectively.

The stock has been on a recovery path since August. UnitedHealth shares are up 45% since the start of August but remain down 28% for the year.

The company faced a historic selloff in the spring after slashing guidance and replacing its CEO. Hemsley returned to the chief executive role in May after serving as chairman.

Berkshire Hathaway’s disclosed stake in the company earlier this year helped boost investor confidence. The stock has climbed steadily over the past three months.

UnitedHealth reaffirmed earnings guidance in early September. This suggested management felt confident in avoiding another guidance cut.

The Medicare business remains under investigation by the Justice Department. The company has said it expects improved Medicare margins in 2026.

Rising medical spending and regulatory changes continue to pressure the managed-care industry. UnitedHealth is working to navigate these challenges while rebuilding credibility with Wall Street.

Hemsley delivered a rock-bottom projection for 2025 adjusted earnings in July as part of the company’s reset efforts. The raised guidance Tuesday shows some progress in that turnaround plan.

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