UnitedHealth raises outlook

UnitedHealth Group raised its 2026 profit outlook on April 21 after first-quarter results beat Wall Street estimates. (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. UnitedHealth said full-year 2026 adjusted net earnings should top $18.25 a share, up from its earlier forecast of more than $17.75. (unitedhealthgroup.com) Reuters, in a report published by CNBC, said analysts had expected lower first-quarter profit and that UnitedHealth’s updated outlook reflected better control of medical costs and operational changes. CNBC reported the company is still working through a broader turnaround after a stretch of elevated care use and restructuring. (cnbc.com) UnitedHealth runs the country’s largest private health insurer through UnitedHealthcare and a large care-and-services business through Optum. Its outlook matters across the sector because Medicare Advantage margins and physician-clinic performance have been central questions for insurers since medical costs jumped in 2024 and 2025. (unitedhealthgroup.com) (cnbc.com) The company’s January outlook for 2026 called for revenue above $439 billion, a year-over-year decline tied to what it described as “right-sizing across the enterprise.” Tuesday’s report kept the focus on margin recovery rather than membership growth, with Investing.com noting management expects about two-thirds of first-half earnings to come from UnitedHealthcare and Optum Health. (cnbc.com) (investing.com) Analysts moved quickly after the report. Investing.com said Deutsche Bank raised its price target to $360 from $304 while keeping a Hold rating, and MarketScreener listed target increases from Jefferies to $373 from $340 and Piper Sandler to $403 from $399 on April 20 and April 21. (in.investing.com) (marketscreener.com) Benzinga also reported Oppenheimer raised its target to $405 from $385 after the quarter, while describing analyst views as mixed. That split reflects a stock still recovering from a steep selloff over the past year even after this week’s guidance increase. (benzinga.com) (investing.com) For now, the clearest change is numerical: UnitedHealth added at least 50 cents a share to its 2026 adjusted earnings target in April, and analysts responded by lifting price targets rather than cutting them. (unitedhealthgroup.com) (cnbc.com)