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UnitedHealth Lifts Full-Year Earnings Outlook as Second-Quarter Revenue Unexpectedly Rises

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UnitedHealth Lifts Full-Year Earnings Outlook as Second-Quarter Revenue Unexpectedly Rises

UnitedHealth (UNH) raised its full-year earnings outlook on Thursday as the health insurance giant recorded an unexpected year-over-year increase in its second-quarter revenue.

The company now anticipates adjusted earnings to be in a range of $19.50 to $20 per share for 2026, up from its previous guidance of more than $18.25. The current consensus on FactSet is for non-GAAP EPS of $18.49.

The stock rose 6.6% in the most recent premarket activity.

UnitedHealth's revenue came in at $112.03 billion for the June quarter, up from $111.62 billion the year before, defying the Street's view for a decrease to $110.81 billion. Adjusted EPS jumped to $6.38 from $4.08, topping the average analyst estimate of $4.91.

"Our results and outlook reflect the continuing progress in our work to simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people," Chief Executive Stephen Hemsley said in a statement.

Revenue in the UnitedHealthcare segment, which provides health care benefits, including those covered under Medicare and Medicaid, slipped to $86.02 billion from $86.1 billion in the prior-year period. The division served 48.5 million people in the quarter, down by 525,000 on a sequential basis, the company said.

The Optum business, which serves the global health care marketplace, saw sales decrease to $65.66 billion from $67.23 billion. Within the segment, Optum Health and Optum Rx recorded lower revenue, while Optum Insight increased to $5.4 billion from $5.23 billion.

UnitedHealth said its medical care ratio, which is used to measure medical costs as a percentage of premium revenue, declined to 86.7% from 89.4% in the 2025 quarter, buoyed by "benefit design and pricing discipline, member mix and medical cost management initiatives." A lower ratio generally signifies higher profitability.

For the ongoing year, the health insurer estimates the medical care ratio to come in at 88.1%, plus or minus 25 basis points, compared with its initial estimate in January for 88.8%, plus or minus 50 basis points.

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