UnitedHealth raises outlook

UnitedHealth Group raised its 2026 profit outlook after first-quarter results topped Wall Street expectations on April 21. (unitedhealthgroup.com) The company reported first-quarter revenue of $111.7 billion, up 2% from a year earlier, with earnings of $6.90 a share and adjusted earnings of $7.23 a share. It now expects 2026 adjusted earnings of more than $18.25 a share, up from the more than $17.75 target it gave on January 27. (unitedhealthgroup.com 1) (unitedhealthgroup.com 2) Chief executive Stephen Hemsley said the quarter reflected “actions taken in the past several months” and that all major business segments exceeded plan. In prepared remarks, the company said pricing at UnitedHealthcare improved against elevated medical-cost trends and that operational changes at Optum Health continued to take hold. (unitedhealthgroup.com) That guidance increase lands after a bruising 2025, when UnitedHealth cut its full-year forecast in April as care use by older patients ran hotter than expected. In its first-quarter 2025 release, the company said its medical care ratio rose to 84.8%, up from 84.3% a year earlier, as senior care activity increased. (unitedhealthgroup.com) Medicare Advantage sits at the center of that turnaround. In that business, private insurers get a fixed monthly payment from the federal government to manage Medicare benefits, so margins improve when pricing, benefits, and care costs line up more closely. (unitedhealthgroup.com 1) (unitedhealthgroup.com 2) Investors welcomed the update. UnitedHealth shares closed at $353.42 on April 22, up $7.41, or 2.14%, for the day after the earnings release. (investing.com) Analysts also moved quickly. Investing.com reported Deutsche Bank raised its price target to $360 from $304 after the quarter, while Morgan Stanley and Bernstein had already pointed to improving Medicare Advantage margins and a steadier outlook for Optum Health. (investing.com 1) (investing.com 2) (investing.com 3) UnitedHealth’s next scheduled earnings report is set for July 9, and the market is now measuring whether one strong quarter can hold up through the rest of 2026. (investing.com)