UnitedHealth Group delivered a stronger-than-expected second quarter and increased its 2026 earnings outlook, signaling progress in its effort to stabilize margins after a stretch of elevated medical costs across the insurance industry. The company now expects adjusted earnings of $19.50 to $20 per share for the year, up from a prior forecast of more than $18.25 per share, while keeping revenue guidance above $439 billion.
For the quarter, the nation’s largest private insurer reported adjusted earnings of $6.38 per share on revenue of $112.03 billion. Analysts surveyed by LSEG had expected $4.90 per share and $110.85 billion in revenue. Net income rose to $5.48 billion, or $6.04 per share, from $3.41 billion, or $3.74 per share, a year earlier. The stock gained about 7% in premarket trading after the results.
The company said the improvement reflects a broader turnaround effort that includes shrinking membership, leaving unprofitable contracts and investing $1.5 billion in artificial intelligence to streamline operations. According to CFO Wayne DeVeydt, AI is being used to speed up prior authorization work, improve payment accuracy and help detect fraud, waste and abuse, but not to decide whether care is approved or denied. He said medical costs remained elevated versus historical norms and described the recovery as a multiyear process.
Both UnitedHealthcare and Optum exceeded sales expectations in the quarter, according to StreetAccount. UnitedHealthcare served 48.5 million people, down 525,000 from the prior quarter, as affordability pressures weighed on Affordable Care Act exchange plans and Medicare Advantage enrollment. DeVeydt said revenue has held up because higher pricing has offset lower membership, though he warned that pattern is not healthy for the system over the long term.
Source: cnbc.com
