UnitedHealth blows past estimates, hikes earnings outlook as it reins in costs
Article excerpt
In this article UnitedHealth Group on Thursday posted second-quarter earnings that blew past estimates and raised its full-year profit outlook, as the company better manages high medical costs and uses AI to help streamline operations. The largest private insurer in the U.S. said it expects 2026 adjusted earnings of $19.50 to $20 per share, up from a previous outlook of more than $18.25 per share. UnitedHealth is maintaining its full-year revenue guidance of greater than $439 billion. But CFO Wayne DeVeydt said in an interview that he expects the company to "do better than that" given the second-quarter beat. Still, he said medical costs in the quarter remained "elevated over historical levels" – an issue that has dogged the broader insurance industry for more than two years. "These results are not a reflection of trend bending or coming under control, but rather our efforts to start pushing down what is already an elevated number," DeVeydt said. Here's what the company reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: UnitedHealth's turnaround plan is gaining momentum following restructuring and an executive shuffle designed to counter challenges in the industry. The healthcare giant is working to stabilize margins by shrinking membership, exiting unprofitable contracts and pouring $1.5 billion into...
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Revenue climbed to $112.03 billion from $111.62 billion in the prior-year quarter.
