Unitedhealth Stock Gains On Strong Q2 Profit, Raised FY26 Outlook

(RTTNews) - Shares of UnitedHealth Group Inc. were gaining around 7 percent in the pre-market activity on the NYSE, after the health care and well-being major on Thursday said it has raised fiscal 2026 outlook after reporting strong growth in second-quarter profit, even though premiums were lower. The company added that its on track to repurchase at least $5.0 billion for the full year 2026.

Stephen Hemsley, chief executive officer, said, "Our results and outlook reflect the continuing progress in our work to simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people."

Looking ahead for fiscal 2026, the company now expects net earnings of $16.75 billion, net earnings per share of $18.45 to $18.95, and adjusted net earnings per share of $19.50 to $20.00 per share.

The previous outlook was net earnings of $15.60 billion or $17.10 per share, and adjusted net earnings of $17.75 per sahre.

Operating earnings are now expected to be above $25.450 billion, higher than previous view of $24 billion. Adjusted operating earnings are projected to be $25.215 billion.

The company said the outlook revision reflected its year-to-date performance and an improved outlook for the remainder of the year.

In the second quarter, Unitedhealth's net earnings attributable to shareholders came in at $5.484 billion or $6.04 per share, higher than $3.406 billion, or $3.74 per share, last year.

Adjusted earnings were $5.792 billion or $6.38 per share for the period, compared to $4.08 per share a year ago.

Earnings from operations grew to $7.99 billion from last year's $5.15 billion, driven by strong performance across both UnitedHealthcare and Optum. Meanwhile, total operating costs declined to $104.04 billion from $106.47 billion last year.

The company's total revenue for the period rose 0.4 percent to $112.032 billion from $111.616 billion last year.

Premiums dropped to $86.956 billion from $87.905 billion a year ago, however, this was offset by higher revenues from products and services.

In the quarter, UnitedHealthcare segment recorded revenues of $86.0 billion, slightly lower than last year's $86.1 billion.

UnitedHealthcare Employer & Individual revenues increased from last year, while Medicare & Retirement revenues edged down due to fewer seniors served. Community & State revenues also were slightly lower.

Optum Revenues declined to $65.7 billion from $67.2 billion last year.

Optum Health's second quarter 2026 revenues of $23.5 billion decreased 5 percent year-over-year due to ~700,000 fewer value-based care patients served.

The second-quarter medical care ratio was 86.7 percent, lower than 89.4 percent in 2025, driven by benefit design and pricing discipline, member mix and medical cost management initiatives.

In pre-market activity, the shares were trading at $448.79, up 7.2 percent, after closing Wednesday's regular trading 1.6 percent lower.

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