UnitedHealth (UNH) Stock Jumps on Strong Q3 Earnings Beat

TLDR

• UnitedHealth Group posted Q3 adjusted earnings of $2.92 per share, surpassing the $2.80 analyst consensus.
• The healthcare company reported revenue of $113.2 billion, up from $100.8 billion in the prior year period.
• Full-year adjusted earnings guidance increased to at least $16.25 per share from the previous $16 floor.
• Medical-loss ratio of 89.9% beat analyst expectations of 90.7%, indicating better cost management.
• Shares gained 4.1% following the earnings announcement, with rivals Elevance Health and Humana also rising.

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UnitedHealth Group delivered third-quarter results that exceeded Wall Street expectations on Tuesday. Adjusted earnings reached $2.92 per share, topping the analyst consensus of $2.80.

The healthcare company reported quarterly revenue of $113.2 billion. This represented growth from $100.8 billion in the year-ago period and aligned with Wall Street projections.

Net income totaled $2.35 billion for the quarter. This compared to $6.06 billion in the same period last year.

UnitedHealth Group Incorporated, UNH

The company increased its full-year adjusted earnings outlook. The new guidance calls for at least $16.25 per share, up from the previous target of $16.

Business Segment Performance

UnitedHealthcare’s insurance division generated revenue of $87.1 billion. That marked a 16% increase from the prior year quarter.

Optum Health recorded flat revenue at $25.9 billion year-over-year. The OptumRx pharmacy benefits segment posted $39.7 billion in revenue, representing 16% growth.

The medical-loss ratio came in at 89.9%. This key metric, which measures the percentage of premiums spent on medical claims and quality improvement, beat the 90.7% analyst forecast.

CEO Stephen Hemsley stated that healthcare utilization aligned with company expectations. He emphasized the focus on strengthening performance and positioning for growth in 2026.

Stock Movement and Recovery Path

Shares climbed 4.1% in premarket trading after the earnings release. The positive results also lifted competing healthcare stocks, with Elevance Health up 1.6% and Humana gaining 2.5%.

UnitedHealth stock has rebounded 45% since early August. However, shares remain down 28% year-to-date following spring financial challenges.

The company underwent leadership changes earlier this year. Hemsley returned as CEO in May after previously serving as chairman.

Berkshire Hathaway’s stake disclosure earlier this year provided a boost to investor sentiment. The stock has shown steady gains over the past three months.

The company reaffirmed guidance in early September. This move signaled management confidence in financial projections.

UnitedHealth faces ongoing challenges in its Medicare business, which is under Justice Department investigation. Management expects Medicare margins to improve in 2026.

The managed-care industry continues dealing with rising medical spending and regulatory pressures. UnitedHealth is working through these headwinds while executing its turnaround strategy.

Hemsley set conservative 2025 projections in July as part of the company’s reset plan. Tuesday’s guidance increase shows progress in the recovery effort.

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