UnitedHealth Group (NYSE:UNH) Announces Quarterly Earnings Results

UnitedHealth Group (NYSE:UNH) issued its quarterly earnings results on Tuesday. The healthcare conglomerate reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.02, Zacks reports. UnitedHealth Group had a net margin of 4.04% and a return on equity of 19.23%. The company’s quarterly revenue was up 12.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $6.81 EPS. UnitedHealth Group updated its FY 2026 guidance to 17.750- EPS.

Here are the key takeaways from UnitedHealth Group’s conference call:

• 2026 financial guidance: UnitedHealth expects adjusted EPS of greater than $17.75 (at least +8.6% growth) with revenues around $440 billion and continued strong cash generation, signaling management’s confidence in margin recovery and operating improvements.
• Membership will meaningfully shrink in 2026 as UnitedHealthcare repriced plans: company expects a total risk-member contraction of about 2.3–2.8 million, including 1.3–1.4 million Medicare Advantage lives and ~565k–715k Medicaid members.
• Reported a largely non‑cash, $1.6 billion net-of-tax charge tied mainly to Optum actions — including cyber‑attack true-ups (~$800M), portfolio exits (~$440M gain component) and broad restructuring (with a ~$625M lost‑contract reserve) — reflecting remediation costs and strategic exits.
• Optum momentum and productivity: Optum Rx added ~800 new clients and the Optum segments target low‑to‑high single‑digit adjusted earnings growth (with margin expansion across Rx, Insight and Health); management expects nearly $1 billion of 2026 AI‑enabled operating cost savings and plans ~$1.5 billion of tech/AI investment in 2026.
• Regulatory risk: CMS’s 2027 Advance Notice would further cut Medicare funding and appears to understate current medical utilization, potentially forcing additional benefit reductions, footprint changes and sector‑wide access/affordability pressure.

UnitedHealth Group Stock Performance

Shares of UNH opened at $293.60 on Tuesday. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.82 and a quick ratio of 0.82. The firm has a market cap of $265.96 billion, a PE ratio of 15.35, a PEG ratio of 2.15 and a beta of 0.42. UnitedHealth Group has a 1 year low of $234.60 and a 1 year high of $606.36. The stock’s fifty day moving average price is $332.71 and its two-hundred day moving average price is $323.96.

UnitedHealth Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 16th. Investors of record on Monday, December 8th were paid a $2.21 dividend. The ex-dividend date was Monday, December 8th. This represents a $8.84 annualized dividend and a yield of 3.0%. UnitedHealth Group’s dividend payout ratio is presently 46.14%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Imprint Wealth LLC bought a new position in UnitedHealth Group in the 3rd quarter worth $33,000. Riggs Asset Managment Co. Inc. increased its stake in UnitedHealth Group by 69.4% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 105 shares of the healthcare conglomerate’s stock valued at $33,000 after purchasing an additional 43 shares in the last quarter. Turning Point Benefit Group Inc. purchased a new position in shares of UnitedHealth Group during the third quarter valued at approximately $41,000. Mpwm Advisory Solutions LLC lifted its stake in shares of UnitedHealth Group by 1,090.9% in the 3rd quarter. Mpwm Advisory Solutions LLC now owns 131 shares of the healthcare conglomerate’s stock worth $45,000 after purchasing an additional 120 shares during the period. Finally, Binnacle Investments Inc raised its stake in shares of UnitedHealth Group by 185.8% in the second quarter. Binnacle Investments Inc now owns 383 shares of the healthcare conglomerate’s stock worth $119,000 after buying an additional 249 shares during the period. Hedge funds and other institutional investors own 87.86% of the company’s stock.

Analyst Ratings Changes

A number of analysts have recently commented on UNH shares. Jefferies Financial Group boosted their price target on UnitedHealth Group from $317.00 to $409.00 and gave the company a “buy” rating in a report on Friday, October 17th. Bank of America boosted their price target on UnitedHealth Group from $350.00 to $390.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 8th. TD Cowen upped their price target on shares of UnitedHealth Group from $335.00 to $338.00 and gave the stock a “hold” rating in a research report on Thursday, October 30th. Barclays lifted their price target on UnitedHealth Group from $386.00 to $391.00 and gave the stock an “overweight” rating in a report on Monday, January 5th. Finally, UBS Group increased their target price on UnitedHealth Group from $378.00 to $430.00 and gave the stock a “buy” rating in a research note on Wednesday, October 29th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $386.33.

UnitedHealth Group News Roundup

Here are the key news stories impacting UnitedHealth Group this week:

• Positive Sentiment: Modest quarterly earnings beat and solid revenue growth: Q4 EPS $2.11 vs. $2.09 consensus and revenue up ~12.3% year-over-year, showing underlying business momentum. BusinessWire: UnitedHealth Group Reports 2025 Results
• Positive Sentiment: Company says 2026 adjusted profit is expected to be slightly above analysts’ estimates, citing progress from cost-control measures under management. This supports a path to margin improvement. Reuters: UnitedHealth forecasts 2026 profit slightly above estimates
• Positive Sentiment: Analyst/institution commentary and MarketBeat coverage frame the post‑selloff share price as a buying opportunity given capital-return capacity (dividend + buybacks) and signs of stabilization. MarketBeat: UnitedHealth coverage
• Neutral Sentiment: Full earnings call and transcript coverage provide detail on operations and the turnaround plan for investors seeking management commentary and forward assumptions. Yahoo Finance: Earnings Call Transcript
• Neutral Sentiment: Some analyst actions and price-target revisions continue (e.g., Morgan Stanley trimmed its target), reflecting differing views on pace of recovery; watch upcoming analyst notes. AmericanBankingNews: Morgan Stanley Cuts Target
• Negative Sentiment: Medicare Advantage rate proposal shock: the Trump administration signaled nearly flat 2027 MA rate increases (well below expectations), a major industry catalyst that triggered heavy selling across insurers and is the primary reason UNH shares dropped. Reuters: Trump administration proposes keeping steady Medicare rates
• Negative Sentiment: Weak 2026 revenue guidance: UNH cut its revenue outlook (guidance roughly $439B vs. street expectations near $456.6B), which markets view as material and growth‑negative. MarketWatch: Revenue outlook weakness
• Negative Sentiment: Large one‑time restructuring charge: a ~$1.6 billion hit to Q4 results reduced reported profit and adds near‑term earnings volatility during the turnaround. Forbes: Restructuring charge
• Negative Sentiment: Market reaction and after‑hours plunge: the combination of the Medicare rate news, weak revenue outlook and restructuring charge triggered sharp after‑hours selling across insurers, amplifying intraday weakness in UNH. CNBC: Health insurers tumble after Medicare rates proposal

UnitedHealth Group Company Profile

UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.

UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.