-- UnitedHealth Group (UNH) raised its full-year earnings outlook on Tuesday as the health insurance giant recorded an unexpected annual increase in its first-quarter results.
The company now anticipates adjusted earnings of more than $18.25 per share for 2026, up from its previous guidance of over $17.75. The current consensus on FactSet is for non-GAAP EPS of $17.86.
The stock jumped 7.8% in the most recent premarket activity.
The company posted adjusted EPS of $7.23 for the March quarter, up from $7.20 the year before, defying the Street's view for a decline to $6.58. Revenue climbed to $111.72 billion from $109.58 billion, compared with the average analyst estimate for a decrease to $109.43 billion.
Revenue in the UnitedHealthcare segment, which provides health care benefits, including those covered under Medicare and Medicaid, grew to $86.27 billion from $84.62 billion in the prior-year quarter. The division served 49.1 million people in the quarter, compared with 49.8 million at the end of 2025.
The Optum business, which serves the global health care marketplace, saw sales move down to $63.75 billion from $63.89 billion. Within the segment, Optum Insight and Optum Rx recorded revenue gains, while Optum Health decreased to $24.11 billion from $24.84 billion.
UnitedHealth said its medical care ratio, which is used to measure medical costs as a percentage of premium revenue, declined to 83.9% from 84.8% in the prior-year period, driven by robust medical cost management and favorable reserve development, partially offset by "consistently elevated utilization and unit cost trends." A lower ratio generally signifies higher profitability.
Earlier in the month, the Centers for Medicare and Medicaid Services finalized a proposal to raise payments to Medicare insurers by 2.48% on average next year.
"Overall, results were strong, as (UnitedHealth) appears poised to return to its consistent beat-and-raise ways," Oppenheimer said in a note. "We expect the stock to be strong on this release, which should also support the group."