Major US Health Insurers Beat Q4 Earnings, Caution on 2026

Two major U.S. health insurers, UnitedHealth Group and Elevance Health, reported fourth-quarter earnings that beat profit expectations but issued cautious outlooks for 2026, citing persistent high medical costs and regulatory pressures on government-backed plans. The disclosures, made on January 27 and 28, triggered sharp declines in their stock prices and broader sector weakness.

UnitedHealth Group, the largest health insurer by market value, posted adjusted earnings of $2.11 per share for the quarter ended December 31, surpassing Wall Street's average estimate of $2.10. Revenue, however, fell short at $113.2 billion, below the anticipated $113.82 billion. For the full year 2025, the company's adjusted medical care ratio, which measures medical expenses as a percentage of premiums, reached 88.9 percent, up from 85.5 percent in 2024 and slightly better than the expected 89.1 percent.

Looking ahead, UnitedHealth projected 2026 revenue exceeding $439 billion, a roughly 2 percent decline from 2025 levels and the first annual drop in a decade. Analysts had forecasted $454.6 billion. The company anticipates adjusted earnings per share of at least $17.75, edging above the average...