UnitedHealth Group reported second-quarter financial results on Thursday that exceeded analyst expectations for both profit and revenue. The company earned an adjusted $6.38 per share, surpassing the $4.90 per share projected by Wall Street. Following the report, the company's shares increased approximately 8% in morning trading.
The company raised its 2026 adjusted profit forecast to a range of $19.50 to $20.00 per share, up from an earlier estimate of at least $17.75. Chief Financial Officer Wayne DeVeydt attributed the performance to improved medical cost management within the Medicare business and higher government reimbursement rates for Medicaid plans.
The medical cost ratio, which measures the percentage of premiums spent on patient care, fell to 86.70% from 89.4% a year earlier. UnitedHealth stated this improvement was driven by changes in insurance plan designs and new product pricing. While overall revenue rose to $112 billion, the company reported a decline in membership for plans purchased through the ACA marketplace following the expiration of pandemic-era subsidies.
In the Optum health services division, operating income rose 29% year-over-year to $4 billion. Management credited this growth to operational improvements in its technology segment and increased clinical efficiency. CEO Stephen Hemsley noted that the company has committed $1.5 billion toward artificial intelligence to reduce administrative burdens.