Barron's describes the earnings beat as part of UnitedHealth's continuing turnaround.
UnitedHealth's earnings beat Wall Street estimates, Barron's reports. The publisher also says the company's turnaround continues.
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UnitedHealth Group posted a stronger-than-expected third quarter and raised its full-year forecast as the company works through a multiyear turnaround.
The health care company reported adjusted earnings of $4.69 per share, up from $2.92 a year earlier. Analysts surveyed by LSEG had expected $4.14, Reuters reported. Revenue reached $112.69 billion, ahead of expectations of about $111.4 billion.
On a standard accounting basis, net income attributable to common shareholders was $4.11 billion, or $4.56 per share, compared with $2.35 billion, or $2.59 per share, in the same quarter last year.
UnitedHealth now expects adjusted earnings of at least $20.50 per share for 2026, up from its previous forecast of at least $19.50 to $20. The new floor is also above the $19.86 average analyst estimate cited by Reuters.
The company's medical cost ratio, which measures the share of insurance premiums spent on medical care, improved to 88.4% from 89.9% a year earlier. UnitedHealth attributed the change to pricing, benefit design and cost controls. The quarter also included a $610 million benefit from reserves set aside for earlier 2026 claims that came in below expectations.
Operating income rose to $6.6 billion from $4.3 billion a year earlier.
The improvement came with a smaller UnitedHealthcare membership base. Revenue at the insurance unit fell to $86.3 billion from $87.1 billion a year earlier. Employer-sponsored enrollment declined by 165,000 during the quarter because of attrition, while Medicaid enrollment fell by 85,000 because of eligibility changes.
UnitedHealth also said its Medicare Advantage membership has declined by 935,000 since the end of 2025. The company said benefit changes, pricing and medical and operating cost controls lifted UnitedHealthcare's operating earnings and margin, while Reuters reported that UnitedHealth had exited some insurance products during the year.
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