By Amina Niasse
NEW YORK, Oct 13 (Reuters) - UnitedHealth Group on Tuesday raised its 2026 profit forecast as the company tightened spending on medical costs in its health insurance business and improved margins in its Optum clinical care and health technology units.
Shares of the company were up 4.5% at $395.50 in premarket trading.
On an adjusted basis, UnitedHealth earned $4.69 per share in the third quarter, up from $2.92 a year earlier, compared with an average analyst estimate of $4.14, according
to data compiled by LSEG.
UnitedHealth now expects 2026 adjusted profit per share of at least $20.50 compared with its previous forecast of at least $19.50 to $20.
Analysts expected UnitedHealth, which operates one of the largest US health insurance companies, clinical care businesses, pharmacy services and a pharmacy benefits manager, to post profit of $19.86 per share for 2026, according to data compiled by LSEG.
UnitedHealth has been on a turnaround for the past two years after it suffered the biggest healthcare cyberattack on record, missed financial targets and was forced to withdraw its outlook. It was also rattled by the killing of a top executive outside the company's investor day in New York nearly two years ago.
COST CONTROLS
UnitedHealth reported a third-quarter medical cost ratio — the percentage of insurance premiums spent on medical care — of 88.4%, better than analysts' estimates and the year earlier's 89.90%.
The company attributed the improvement to plan design and new pricing on products. The company has exited some health insurance products this year and has named new top executives after missing financial estimates last year.
Revenue from the insurance business fell to $86.3 billion from $87.1 billion a year earlier even as earnings from operations and profit margins rose due to benefit changes, pricing, and medical and operating cost controls.
UnitedHealthcare operates Medicare Advantage health insurance plans for adults aged 65 and older or who have disabilities and also runs Medicaid plans for low-income Americans on behalf of state governments.
The company said that UnitedHealthcare membership declined in its employer-sponsored health plan business by 165,000 people due to attrition and another 85,000 people left the Medicaid rolls due to eligibility changes.
Since year-end 2025, 935,000 members have exited its Medicare Advantage business.
RISING REVENUE
On a yearly basis, third-quarter operating income for UnitedHealth rose to $6.6 billion from $4.3 billion in the year-ago quarter, largely driven by improved operations in its Optum Health clinical unit.
UnitedHealth said technological investments the company has made have reduced the overall costs of providing medical services. Optum exited less favorable contracts for certain health plans that had dragged on earnings in the first quarter.
The company last year said Optum faced regulatory and cost challenges, representing an $11 billion blow to the unit over three years.
Overall third-quarter revenue rose to $112.694 billion from $113.161 billion, the company said. That beat analyst expectations of about $111 billion, according to LSEG.
(Reporting by Amina Niasse; editing by Caroline Humer and Sonali Paul)
