UnitedHealth raises 2026 outlook after earnings beat

UnitedHealth Group raised its 2026 adjusted earnings outlook after third-quarter profit exceeded analyst expectations, while reporting an improved medical care ratio and continued pressure from elevated healthcare costs. The insurer said adjusted earnings were $4.69 per share for the quarter, above the $4.14 average analyst estimate. It now expects adjusted earnings of at least $20.50 per share for 2026, up from a previous range of $19.50 to $20. The company also reported net income of $4.11 billion, or $4.56 per share, compared with $2.35 billion, or $2.59 per share, a year earlier. UnitedHealth’s medical care ratio, which measures medical costs as a share of premiums, fell to 88.4% from 89.9% a year earlier. Lower figures generally indicate that a smaller portion of premium revenue is being spent on care. The company attributed the improvement to changes in plan design and pricing, according to its reported explanation. The quarter’s ratio included $610 million in favorable development of reserves for claims from prior periods, one account of the results reported. Such reserve development can lift quarterly results, but may not recur.