UnitedHealth has returned to better-than-expected growth after starting the year swamped by medical costs and then withdrawing its forecast for 2025. Leaders of the health care giant said Tuesday that care use is now climbing at rates they expected, and the company envisions annual growth next year that accelerates in 2027. In the meantime, UnitedHealth is going through a transition year, resetting health insurance prices and trimming unprofitable parts of that business. That includes cuts to its individ ...

Core Insights - UnitedHealth Group reported $113.16 billion in revenue for Q3 2025, a year-over-year increase of 12.2%, but a slight miss of -0.17% compared to the Zacks Consensus Estimate of $113.36 billion [1] - The EPS for the quarter was $2.92, down from $7.15 a year ago, but exceeded the consensus estimate of $2.75 by +6.18% [1] Financial Performance Metrics - Medical Care Ratio was reported at 89.9%, better than the seven-analyst average estimate of 90.9% [4] - Total people served in the Commercial Domestic Risk-based category was 8.44 million, slightly below the five-analyst average estimate of 8.45 million [4] - Total revenues from Investment and other income were $1.13 billion, exceeding the eight-analyst average estimate of $1.09 billion, but reflecting a year-over-year decline of -31.1% [4] - Revenues from Products were $13.3 billion, compared to the $13.8 billion average estimate, marking a +5.3% year-over-year change [4] - Revenues from Services reached $9.75 billion, surpassing the eight-analyst average estimate of $9.31 billion, with a year-over-year increase of +7.1% [4] - Premium revenues were $88.98 billion, slightly below the average estimate of $89.18 billion, with a year-over-year increase of +14.9% [4] - Revenues from Optum Rx were $39.68 billion, exceeding the estimated $38.58 billion, representing a +16% year-over-year change [4] - Total revenues from UnitedHealthcare were $87.07 billion, slightly above the six-analyst average estimate of $87.02 billion, with a year-over-year increase of +16.3% [4] Stock Performance - UnitedHealth shares returned +6% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - The Dow Jones Industrial Average (DJIA) is currently experiencing a mix of strong performers and underperformers as it heads into the Q3 earnings season [1][17] - Caterpillar (CAT) leads the DJIA with a year-to-date increase of 49%, driven by its AI initiatives and role in power generation for data centers [6][7] - Johnson & Johnson (JNJ) follows closely with a 38% return in 2025, bolstered by strong profit numbers and a dividend yield of 2.7% [8][9] - NVIDIA (NVDA) has also performed well, with a 37% increase, and is expected to report Q3 results on November 19 [11] - Goldman Sachs (GS) has seen a decline in performance but recently beat earnings expectations and set a $100 billion fundraising target [13] - UnitedHealth Group (UNH) has struggled, down 27%, but is attempting a comeback following Berkshire Hathaway's investment [14][15] - Apple (AAPL) reached a record high due to strong iPhone 17 sales, with its Q4 report due on October 30 [16] Company Performance - Caterpillar (CAT) has a market cap of $247 billion and is benefiting from AI advancements in turbine manufacturing [6] - Johnson & Johnson (JNJ) is recognized for its strong profit performance and has raised its guidance alongside its earnings report [8][9] - NVIDIA (NVDA) has seen its stock price more than double since April, indicating strong market confidence [11] - Goldman Sachs (GS) has shifted from being a top performer to a laggard but remains a key player in the financial sector [13] - UnitedHealth Group (UNH) is attempting to recover from significant losses, with potential momentum from recent investments [14][15] - Apple (AAPL) has capitalized on strong sales in China, leading to stock upgrades and a record closing price [16]

Traders await an onslaught of news(Photo by: Joe Sohm/Visions of America/Universal Images Group via Getty Images)Universal Images Group via Getty Images Yet another day of new records in the stock market on Monday as the S&P 500 was higher by 1.2%, the Dow up 0.7% and the Nasdaq up almost 2%. This is an amazing run as seemingly big progress on the trade front with China, through in a start to a Fed meeting in which many are hoping for rate cuts and the seeming taming of inflation, and it adds up for the pos ...

Skip to content S&P 500 6,900.00 +0.17% Dow Jones 47,881.60 +0.55% Nasdaq 100 25,957.70 +0.26% Russell 2000 2,512.96 -0.50% FTSE 100 9,719.80 +0.38% Nikkei 225 50,648.20 +0.13% Home >Investing >United Health Jumps After Big Q3 Earnings UnitedHealth Group (NYSE: UNH) beat earnings expectations this morning, posting adjusted EPS of $2.92 against a consensus of $2.82. The stock opened near $379, buoyed by the EPS beat and a raised full-year guidance. But there's a wrinkle worth noting: revenue came in light at ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.92, slightly ahead of expectations [28] - Revenues exceeded $113 billion, reflecting a 12% year-over-year growth, driven by domestic membership expansion of over 780,000 lives year to date [29] - The medical care ratio was 89.9% in the quarter, compared to 85.2% in the same quarter last year, with the full year trending toward the lower end of projections [29] Business Line Data and Key Metrics Changes - UnitedHealthcare's medical cost trends remain historically high but consistent with second quarter guidance, expected to continue throughout 2025 [10] - Medicare Advantage is forecasted to have a full-year 2025 trend of approximately 7.5%, consistent with previous expectations [11] - Optum Health's performance was in line with expectations, reflecting natural seasonality and pull forward of some investments [23] Market Data and Key Metrics Changes - The company expects membership contraction of approximately 1 million in total Medicare Advantage, including individual and group markets [12] - In the ACA markets, average rate increases of over 25% have been submitted in nearly all participating states, likely reducing ACA enrollment by approximately two-thirds [14] - Medicaid funding levels are not sufficient to cover health needs, with expectations of continued challenges through 2026 [15] Company Strategy and Development Direction - The company is focused on returning to consistent enterprise-wide performance levels and is committed to value-based care [7][9] - Actions are being taken to narrow networks and emphasize appropriately aligned physicians and services [8] - The company plans to balance earnings growth ambitions in 2026 with investments for sustainable double-digit growth beginning in 2027 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to solid earnings growth next year, despite external challenges such as Medicare cuts and Medicaid funding pressures [8][9] - The company anticipates 2026 to be a transition year, with a focus on operational rigor and prudent pricing [17] - Management is optimistic about the long-term growth potential of Medicare Advantage, despite current pressures [62] Other Important Information - The company is investing more than $450 million in employee incentives and contributions to the UnitedHealth Foundation [30] - The debt-to-capital ratio remains stable at 44.1%, with expectations to trend closer to 40% in the second half of 2026 [31] - The company is accelerating investments in AI applications to improve enterprise performance [34] Q&A Session Summary Question: Update on sub-businesses in Optum Health - The revenue breakdown is 65% value-based care, 15% care delivery fee-for-service, and 20% payer employer services, with two-thirds of VBC serving UnitedHealthcare [40][42] Question: Competitive position of Optum Insight - Optum's competitive position is strong, with a focus on AI-first products and modernization of existing services [46][50] Question: Membership declines in Medicare Advantage - The company expects approximately 1 million membership contractions in 2026, with a disciplined approach to pricing impacting both group and individual markets [60][62] Question: Medical cost trends in the employer market - Medical cost trends are approximately 11%, with employers evaluating various strategies for 2026 [93]

UnitedHealth (NYSE:UNH) Q3 2025 Earnings Call October 28, 2025 08:00 AM ET Company ParticipantsA.J. Rice - Managing DirectorDan Schumacher - Chief Strategy and Growth OfficerWhit Mayo - Senior Managing Director of Equity ResearchLisa Gill - Managing DirectorBobby Hunter - CEO of Government ProgramsPatrick Conway - CEO of OptumMike Cotton - CEO of MedicaidKrista Nelson - COO of Optum HealthTim Noel - CEO of UnitedHealthcareAndrew Mok - DirectorWayne DeVeydt - CFODave Windley - Managing DirectorStephen Hemsle ...

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $2.92, slightly ahead of expectations, with revenues exceeding $113 billion, reflecting a 12% year-over-year growth [25][26] - The medical care ratio increased to 89.9% from 85.2% year-over-year, with the full year trending toward the lower end of previous projections [26][27] - Operating cost ratio was 13.5%, reflecting larger investments in technology and personnel than originally planned [27] Business Line Data and Key Metrics Changes - UnitedHealthcare's medical cost trends remain historically high but consistent with second quarter guidance, with a forecasted full-year 2025 trend of approximately 7.5% in Medicare Advantage [7][8] - Optum Health's performance was in line with expectations, with anticipated margin improvement across all segments in 2026, despite ongoing Medicare funding cuts [22][23] - The company expects membership contraction of approximately 1 million in total Medicare Advantage, including individual and group markets, due to competitive market dynamics and strategic plan exits [9][10] Market Data and Key Metrics Changes - The company anticipates a challenging environment in Medicaid due to insufficient funding levels, with margins expected to decline further in 2026 [12][13] - The commercial market is expected to contract in line with broader market trends, but self-funded offerings continue to show strong traction [10][11] - The ACA markets are seeing average rate increases of over 25%, with expected enrollment reductions of approximately two-thirds [11] Company Strategy and Development Direction - The company is focused on returning to consistent enterprise-wide performance levels and enhancing operational rigor, particularly in value-based care [4][5] - There is a commitment to narrowing networks and emphasizing appropriately aligned physicians and services to improve competitiveness [5][6] - The company plans to balance earnings growth ambitions with investments that will drive sustainable double-digit growth beginning in 2027 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to solid earnings growth in 2026, despite external challenges such as Medicare cuts and Medicaid funding pressures [5][6] - The company is committed to engaging actively with investors and stakeholders, with plans for an investor conference in the latter half of 2026 [6] - Management highlighted the importance of operational discipline and the need to manage costs effectively in the current environment [33][36] Other Important Information - The company is investing significantly in technology and employee incentives, with over $450 million allocated to these areas [28] - The debt-to-capital ratio remains stable at 44.1%, with expectations to trend closer to 40% in the second half of 2026 [29] - The company is taking aggressive steps on affordability initiatives to improve overall medical trends relative to pricing [32] Q&A Session Summary Question: Update on sub-businesses in Optum Health - The revenue breakdown is 65% value-based care, 15% fee-for-service, and 20% payer employer services, with two-thirds of VBC serving UnitedHealthcare [38][39] Question: Competitive position of Optum Insight - Optum's competitive position is strong, with new AI-first products showing promising results and a focus on evolving traditional services to AI-based offerings [43][44] Question: Membership declines in Medicare Advantage - The company expects approximately 1 million membership contractions in 2026, with a disciplined approach to pricing impacting both group and individual segments [54][56] Question: Medicaid margin recovery - The company expects break-even margins in 2025, with further degradation in 2026 due to funding dislocation, but anticipates recovery in 2027 and 2028 [80][81] Question: Employer market medical cost trends - Medical cost trends are approximately 11%, with employers increasingly interested in value-based care and integrated solutions [83][85]

Let's bring in Kevin Green who is going to help set up the action for today. So, as we mentioned yesterday, we had new records across the board there. What do you make of the positioning of the back of that and ahead of what is going to be a massive couple of days there, Kev.>> Well, good morning, Sam. Well, obviously the market is really positioning for the S&P 500 as well as the NASDAQ 100 to move higher here. We obviously have earnings this week from some of the major uh tech names that could actually mo ...

UnitedHealth Group’s stock rose about 4% early Tuesday morning, offering a slight hint of relief in an otherwise brutal year, with the company’s third-quarter earnings suggesting the worst of the turmoil may have passed, at least for now. But those earnings are also a powerful reminder that the U.S.’s healthcare math, whether corporate or federal, just does not add up. They also arrive as the federal government remains shut down over a Republican-led refusal to fund an extension of the Affordable Care Act ...