UnitedHealth lifts 2025 profit forecast, aims for growth in 2026

Core Insights - UnitedHealth raised its annual profit forecast and aims for growth in 2026, indicating successful turnaround efforts under new CEO Stephen Hemsley [1][2] - The company's shares rose over 5% in premarket trading following better-than-expected quarterly earnings and controlled medical costs [1] Financial Performance - UnitedHealth now projects 2025 adjusted profit per share to be at least $16.25, up from a previous estimate of $16.00, and above analysts' expectations of $16.20 [2] - The company's medical loss ratio for Q3 ended September 30 was 89.9%, aligning with expectations, while analysts had anticipated a ratio of 89.87% [4] - Quarterly revenue for the Optum health services unit remained flat year-over-year at $25.9 billion, while revenue at Optum Rx, the pharmacy benefit manager, increased by 16% to $39.7 billion due to higher prescription volumes [4][5] - On an adjusted basis, the company reported a profit of $2.92 per share for the quarter, surpassing analysts' average estimate of $2.79 [5] Management and Strategy - CEO Stephen Hemsley, who previously led the company from 2006 to 2017, is focused on regaining investor and consumer trust following rising medical costs and dissatisfaction with healthcare prices [3] - Hemsley has initiated a management shakeup, replacing several long-time executives to strengthen performance and position the company for sustainable growth [3]