UnitedHealth shares jump after earnings beat, higher profit forecast
UnitedHealth Group (UNH) on Tuesday raised its annual profit forecast after reporting stronger-than-expected quarterly earnings, as the U.S. health insurer kept medical costs under control — sending its shares up more than 5% in premarket trading, News.Az reports, citing Reuters.
The company had lowered its profit forecast in July after suspending prior guidance in May, which had triggered a selloff in its stock.
Newly reinstated CEO Stephen Hemsley has been working to restore investor and consumer confidence following a surge in medical costs and public frustration over high healthcare prices. Hemsley, who replaced several senior executives earlier this year, emphasized a renewed focus on stability and growth.
“We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond, and our results this quarter reflect solid execution toward that goal,” Hemsley said.
For the third quarter ended September 30, UnitedHealth’s medical loss ratio — the share of premiums spent on medical care — was 89.9%, in line with company expectations and close to analysts’ forecast of 89.87%, according to LSEG data. Insurers typically target a ratio near 80%.
Revenue at Optum Health, its healthcare services unit, remained flat year-over-year at $25.9 billion. However, Optum Rx, the company’s pharmacy benefit management arm, saw revenue climb 16% to $39.7 billion, driven by higher prescription volumes from both new and existing clients.
UnitedHealth now expects adjusted profit per share for 2025 to be at least $16.25, up from its prior forecast of $16.00, and above analysts’ consensus estimate of $16.20.
On an adjusted basis, the company reported earnings of $2.92 per share for the quarter, exceeding analysts’ average estimate of $2.79.
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