A month has gone by since the last earnings report for UnitedHealth Group (UNH). Shares have added about 8.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is UnitedHealth due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
UnitedHealth Q1 Earnings Beat Estimates on Rising Premiums
UnitedHealth reported first-quarter 2026 adjusted earnings per share (EPS) of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year.
Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%.
The strong quarterly results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Rx. However, weakness in Optum Health and declining risk-based membership partially offset the positives.
Q1 Business Performance of UNH
UnitedHealth’s first-quarter premium of $87.6 billion increased from $86.5 billion a year ago and beat the consensus mark of $86.1 billion.
UNH’s adjusted medical care ratio (MCR) was 83.9% in the first quarter, which improved 90 bps from the year-ago period. The metric was lower than the Zacks Consensus Estimate of 85.7%. MCR witnessed a decrease due to solid medical cost management and favorable reserve development. Medical costs of $73.5 billion rose from $73.4 billion a year ago.
First-quarter total operating costs of $102.7 billion increased 2.3% year over year due to higher medical costs and operating costs. The figure came higher than our model estimate of $101.5 billion. The first-quarter 2026 operating cost ratio deteriorated to 13.8% from 12.4% a year ago.
UnitedHealth’s adjusted operating earnings declined 1.7% year over year to $9 billion in the first quarter.
UNH’s Business Platforms
Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, rose 1.9% year over year to $86.3 billion in the first quarter. The metric beat the Zacks Consensus Estimate of $85.1 billion and our estimate of $84.4 billion. The UnitedHealthcare business catered to 49.1 million people as of March 31, 2026, which fell 2.1% year over year. However, the figure beat the Zacks Consensus Estimate of 48.1 million.
Adjusted earnings from operations amounted to $5.7 billion, up from $5.2 billion a year ago. The adjusted operating margin increased to 6.6% from 6.2% a year ago.
Revenues in the Optum business line were $63.7 billion, which fell from $63.9 billion a year ago due to lower contributions from Optum Health. However, the figure surpassed the consensus mark of $61.6 billion. Optum’s adjusted earnings from operations declined to $3.3 billion from $3.9 billion a year ago. The adjusted operating margin of 5.1% decreased from 6.1%.
UNH’s Financial Position (As of March 31, 2026)
UnitedHealth exited the first quarter with cash and short-term investments of $31.2 billion, which rose from the 2025-end level of $28.1 billion. Total assets of $312.6 billion increased from the $309.6 billion figure at 2025-end.
Long-term debt, less current maturities, amounted to $71.4 billion, down from the $72.3 billion figure as of Dec. 31, 2025. Short-term borrowings and the current maturities of long-term debt were $6.5 billion.
Total equity of $103.9 billion advanced from the 2025-end level of $100.1 billion.
UnitedHealth generated operating cash flows of $8.9 billion in the first quarter of 2026, which grew from the prior-year figure of $5.5 billion. In the first quarter of 2026, it paid dividends worth $2 billion.
UNH’s Revised 2026 Outlook
Management earlier projected revenues for 2026 above $439 billion, which are below the 2025 level due to planned right-sizing across operations. Adjusted EPS is now expected to be more than $18.25 for 2026, up from the previous guidance of at least $17.75, indicating improving margins. It is higher than the Zacks Consensus Estimate of $17.66. Net margin was expected to be around 3.6%, up from 2.7% in 2025.
The company earlier expected MCR to be 88.8% (± 50 bps) in 2026, down from 89.1% in 2025, while the operating cost ratio was likely to be 12.8% (± 50 bps). The tax rate was expected to be around 19.25%.
Operating cash flows were estimated to be $18 billion, down from the 2025 level. UNH is expected to make repurchases of $2.5 billion and pay dividends worth $8 billion in 2026. Capex was estimated at $3.8 billion for the year.
Furthermore, management earlier expected medical memberships to be within 46.945-47.495 million in 2026, with significant declines in commercial risk, Medicare Advantage and Medicaid heads.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, UnitedHealth has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, UnitedHealth has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
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