UnitedHealth maps path back to Wall Street’s good graces

Core Insights - UnitedHealth has faced challenges this year due to unexpectedly high medical costs, resulting in a significant stock decline of over 27% year to date and missing earnings expectations for the first time in over a decade [3][4] - The company's third quarter results showed a revenue increase of 12% year over year, totaling $113.2 billion, although net income fell by 61% to $2.3 billion [4] - UnitedHealth's CEO indicated progress in the company's turnaround strategy, which includes executive reshuffling and cost control measures [6][8] Financial Performance - Revenue for the third quarter reached $113.2 billion, reflecting a 12% increase compared to the previous year [4] - Net income decreased to $2.3 billion, a 61% decline year over year, but still exceeded analysts' expectations [4] - The company anticipates adjusted earnings of at least $16.25 per share for the current year [7] Strategic Outlook - UnitedHealth is focusing on operational improvements and prudent pricing strategies, aiming for solid earnings growth in the upcoming year [8] - The company is preparing for significant membership losses in 2026, expecting to lose about 1 million Medicare Advantage members and reduce Affordable Care Act enrollment by approximately two-thirds [8]