UnitedHealth Group Incorporated

UnitedHealth reported Q3 2026 revenue of $113 billion and adjusted EPS of $4.69, compared with $2.92 in the prior-year quarter. Consolidated medical care ratio was 88.4% versus 89.9% last year. For the full year 2026, management raised adjusted EPS guidance to at least $20.50. In Medicare, management said 2026 results now look to be near the top end of the 2%-4% margin range. In Medicaid, the company said 2026 remains a trough year for core Medicaid margins and now expects them to be moderately better than negative 1%. Looking ahead, management said 2027 should reflect continued progress in Medicare fundamentals, stronger commercial selling, improving Medicaid performance, and benefits from AI and modernization, but it will also include continued investment and still-elevated medical trend.

Steve Hemsley framed the quarter as evidence that actions taken through 2026 are starting to show through in better execution, simpler processes, and more modern capabilities. He emphasized AI-enabled tools, prior authorization reform, and integrated value-based care as central to making care simpler for clinicians and better for patients. His tone was constructive and forward-looking, repeatedly saying the company is gaining traction and building toward 2027 and beyond.

Wayne DeVeydt highlighted the hard numbers: $113 billion of revenue, $4.69 adjusted EPS, and an 88.4% medical care ratio for Q3. He said the updated 2026 adjusted EPS guide of at least $20.50 reflects year-to-date performance plus expected investment in the final months of the year. He also noted balance-sheet strength, with debt-to-capital at 41.7% and a goal to approach 40% by year-end, along with $5 billion of stock repurchased through Q3 and $6.2 billion of dividends paid year to date, expected to exceed $8 billion by year-end. He told investors the current 2026 EPS guide looks like a solid run rate and suggested consensus for 2027 may understate the opportunity ahead.

Analysts pressed on Medicaid turnaround, Medicare Advantage margins, 2027 growth, and commercial pricing. Management said Medicaid trends improved in Q3 and that 2026 should be moderately better than the prior forecast, while Medicare margins are expected near the top end of the 2%-4% range. On commercial, management said trends remain high but are stabilizing, and that 2027 pricing was set assuming those elevated costs continue. Questions also focused on the No Surprises Act dispute process, where management said awards can reach nearly 6% of medical spend in some regions and are driving excess costs; they want the law to work as intended, not be repealed.