UnitedHealth Group Inc has raised its full-year earnings outlook after reporting stronger-than-expected results for the second quarter of the 2026 financial year (Q2 FY26).
The American healthcare group said it expected FY26 adjusted earnings per share (EPS) of between US$19.50 and $20.00 resulting from the performance year to date and an improved outlook for the remainder of the year.
The company reported net earnings of US$5.848 billion (A$8.36 billion) for the three months ended 30 June 2026, an 18% increase on the previous corresponding period.
Adjusted EPS soared 56% to $6.38, which was significantly ahead of Wall Street expectations, on revenue which edged up by 0.4% to $112.032 billion.
“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,” Chief Executive Officer Stephen Hemsley said in a news release.
Chief Financial Officer Wayne DeVeydt attributed the improved results partly to cost controls in the Medicare health insurance business and higher government reimbursement in Medicaid plans for low-income Americans.
"These results are not a reflection of a trend bending or coming under control, but rather our efforts to start pushing down what is already an elevated number," DeVeydt was quoted in a Reuters story as saying.
The company had faced investor concerns after disappointing results in 2025 forced it to withdraw its financial outlook, but since then Hemsley has restructured the business.
UnitedHealth’s shares (NYSE: UNH) surged almost 8% in morning trading as investors responded positively to evidence that medical cost pressures were being controlled and the turnaround strategy was gaining traction, according to Reuters.
The shares ended $4.86 (1.16%) higher at $423.38 on Thursday (Friday AEST), capitalising the company at $384.49 billion.
