Oct 13, 2026, 6:14 AM ETHealthcare

UnitedHealth Group — Third Quarter 2026 Earnings Summary

UNHUNITEDHEALTH GROUP INC

Financial Performance

Consolidated revenues for the third quarter of 2026 were $112.7 billion, down from $113.2 billion in the third quarter of 2025.
Earnings from operations were $6.6 billion, an increase from $4.3 billion in the third quarter of 2025.
Net margin was 3.6% for the quarter, compared to 2.1% in the prior year period.
Diluted earnings per share (EPS) were $4.56, compared to $2.59 in the third quarter of 2025.
Adjusted earnings per share were $4.69, compared to $2.92 in the third quarter of 2025.
Cash flows from operations were $5.1 billion, representing 1.2 times net income.
The debt-to-capital ratio was 41.7% as of September 30, 2026, compared to 41.2% in the second quarter of 2026.
The company repurchased $5.0 billion of common stock and paid $6.2 billion in dividends year-to-date.
Medical cost ratio was 88.4% for the quarter, down from 89.9% in the third quarter of 2025, driven by $610 million of net favorable prior period reserve development.
Operating cost ratio was 12.8%, down from 13.5% in the third quarter of 2025.
Days claims payable were 47.0, and days sales outstanding were 16.9.

Updated full-year 2026 earnings outlook to at least $19.50 per share.
Updated full-year 2026 adjusted earnings outlook to at least $20.50 per share.
The company targets a long-term debt-to-capital ratio of approximately 40.0% by year-end.
Committed to eliminating 30% of current prior approval volume by the end of 2026.
Committed to eliminating nearly two-thirds of prior approval requirements for pediatric care by the end of 2026.
Committed to 100% pass-through of manufacturer drug rebate discounts to clients by January 1, 2028.
Expected to publicly report prior approval metrics to help clinicians and members understand the process.

UnitedHealthcare:
- Generated revenues of $86.3 billion and earnings of $2.8 billion, serving 48.3 million consumers.
- Operating margin was 3.3%, up from 2.1% in the third quarter of 2025.
- Employer & Individual: Revenues were $20.2 billion (up from $19.9 billion); membership contracted by 165,000 due to employer attrition.
- Medicare & Retirement: Revenues were $42.4 billion (down from $43.4 billion); membership contracted by 935,000 since year-end 2025. 69% of members were in 4+ Star plans for 2027.
- Community & State: Revenues were $23.7 billion (down from $23.8 billion); membership contracted by 85,000 due to Medicaid eligibility changes.
Optum:
- Generated revenues of $66.9 billion and earnings of $3.7 billion, caring for over 120 million patients.
- Operating margin was 5.6%, up from 3.6% in the third quarter of 2025.
- Optum Health: Revenues were $22.9 billion, down 10% year-over-year; earnings were $735 million with an operating margin of 3.2%.
- Optum Insight: Revenues were $5.5 billion, up 3% year-over-year; earnings were $1.3 billion.
- Optum Rx: Revenues were $39.9 billion; earnings were $1.7 billion. Adjusted scripts were 393 million, down from 414 million in the prior year quarter.

UnitedHealthcare is expanding eligibility for its Gold Card status to exempt high-performing clinicians from routine approval requirements.
The company launched the industry's first fully transparent, fee-based pharmacy care model to decouple PBM pricing from drug list prices.
Announced nationwide coverage expansion for doula care with employer-sponsored plans, with over 7 million members eligible by January 2027.
Expanded access to child and family behavioral health coaching, with approximately 13 million members now eligible.
Supporting 1,500 rural hospitals by accelerating payments, cutting reimbursement timelines in half, and exempting clinicians from most prior approval requirements.

Risks include the ability to effectively estimate, price for, and manage medical costs.
Potential impacts from new or changes in existing healthcare laws, regulations, or their enforcement.
Risks associated with cyberattacks, privacy/data security incidents, or failure to comply with related regulations.
Reductions in revenue or delays to cash flows received under government programs.
Changes in Medicare, CMS star ratings program, or risk adjustment data validation audits.
DOJ legal actions concerning participation in the Medicare program.
Risks associated with the sale of remaining operations in South America.
Competitive pressures, including the ability to maintain or increase market share.
Risks related to the increasing use of artificial intelligence and other emerging technologies.

CEO Stephen Hemsley stated that third-quarter results reflect "discipline and execution" as the company evolves to deliver a "simpler, more supportive experience."
Management highlighted that the medical cost ratio improvement reflected medical cost management, pricing discipline, benefit design changes, and care delivery enhancements focused on affordability.
The operating cost ratio improvement reflected realized efficiencies partially offset by accelerating investments in technology, processes, and people.
Management noted that Optum Health's earnings improvement was driven by strengthened operational discipline and medical cost management initiatives.

Committed $1 billion to the United Health Foundation to support rural health, maternal and children's health, and behavioral health.
Committed to voluntarily eliminating and rebating profits from individual Affordable Care Act coverage offerings in 2026, returning money to approximately 1 million ACA members.
Eliminated 33% of drug reauthorizations for a list of nearly 270 chronic condition medications.
Created a new Public Responsibility Committee for the Board of Directors and added a new independent director.
Released an independent review of the HouseCalls program showing an error rate nearly three times lower than recent Federal CMS audits.
Eliminated 10% of total UnitedHealthcare prior approval volume by removing requirements for home health services.
Increased payments to independent and community physicians for brand name drugs, benefiting approximately 2,300 pharmacies.