UnitedHealth rises 6% after Q2 beat, raises 2026 outlook

UnitedHealth Group reported stronger-than-expected second-quarter results and raised its full-year adjusted earnings outlook for 2026, sending the stock higher in premarket trading. The company lifted its 2026 adjusted earnings guidance to $19.50–$20 per share from a prior target of more than $18.25, and kept a revenue target of more than $439 billion.

For the quarter ended June, UnitedHealth posted adjusted earnings of $6.38 per share on $112.03 billion in revenue. Net income was $5.48 billion, or $6.04 per share, up from $3.41 billion, or $3.74 per share, a year earlier. The adjusted figure excludes restructuring costs, divestitures and reserve adjustments tied to unprofitable contracts.

The company narrowed its medical cost ratio to 86.7% from 89.4% a year earlier, below analyst expectations of roughly 88.5%. Chief Financial Officer Wayne DeVeydt attributed the improvement to tighter cost controls in Medicare Advantage and higher reimbursement rates for Medicaid plans. He cautioned that healthcare costs remain historically elevated, saying, “These results are not a reflection of trend bending or coming under control, but rather our efforts to start pushing down what is already an elevated number.”

UnitedHealth said executives expect revenue to outperform the current target following the stronger quarter. The firm highlighted artificial intelligence and operational restructuring as parts of a multi-year plan to restore margins. The company has committed about $1.5 billion to AI projects aimed at improving administrative efficiency, strengthening payment accuracy and reducing fraud, waste and abuse. DeVeydt told reporters that AI is speeding administrative tasks such as prior authorizations and helping improve patient care quality, while stressing AI tools are not being used to make final treatment approval decisions. He added, “I would say the turnaround, and I would emphasize that on our culture, it’s really happening … that turnaround is translating to strong, strong earnings.”

UnitedHealth has been reshaping its business by reducing operations in less profitable areas and exiting contracts that weighed on margins. Membership declined to 48.5 million during the quarter, down about 525,000 from the prior three months. The company cited higher premiums and benefit changes for falling enrollment in Affordable Care Act exchange plans and Medicare Advantage products, and expects to lose roughly 500,000 exchange members and 1.1 million Medicare Advantage members during 2026. DeVeydt warned that relying on price increases to offset membership declines is not sustainable over the long term.

The wider insurance industry faces pressure from rising healthcare utilization as patients seek delayed care and from costly specialty medicines, including GLP-1 weight-loss drugs. After two quarters of better-than-expected results, analysts have become more positive on UnitedHealth’s prospects. The stock has gained about 25% year to date and several brokerages have raised ratings and price targets, though the shares have moved above the consensus price target used by many analysts.

UnitedHealth is the largest private health insurer in the United States and operates through health benefits and health services businesses. The company has emphasized technology investments and cost controls as it seeks to restore historical earnings growth and manage rising healthcare costs.