UnitedHealth share price: UNH Stock jumps to new high after UnitedHealth Group Inc earnings raise profit forecast

UnitedHealth share price on Tuesday jumped after UnitedHealth Group Inc earnings were announced. UNH stock rose over 3 per cent in premarket trading after third-quarter earnings came ahead of Wall Street expectations as the U.S. health insurer kept medical costs in check. UnitedHealth Group Inc raised its annual profit forecast and said it aims to grow in 2026, in a sign that the turnaround efforts under new CEO Stephen Hemsley were gaining steam.

Hemsley, who was at the helm of the company from 2006 to 2017, has been working to regain investor and consumer trust in the wake of an unexpected surge in medical costs, a federal probe and Americans' anger at the high price of health care.

He was brought in May as a part of a management shakeup after the company's first earnings miss in over a decade in April.


The healthcare giant now sees 2025 adjusted profit per share to be at least $16.25, compared with its previous estimate of at least $16.00, and above analysts estimate of $16.20 per share, according to data compiled by LSEG.

UnitedHealth said it continues to see elevated costs, which the industry has been struggling with for more than two years.

For the quarter ended September 30, the company's medical loss ratio - the percentage of premiums spent on medical care - stood at 89.9 per cent, in line with the company's expectations. Insurers aim for a ratio close to around 80 per cent.

Analysts on average had expected the company to report a ratio of 89.87 per cent. UnitedHealth's quarterly revenue at its Optum health services unit was flat year-over-year at $25.9 billion.

Revenue at Optum Rx, UnitedHealth's pharmacy benefit manager, rose 16 per cent to $39.7 billion, partly helped by higher prescription volumes. On an adjusted basis, the company earned a profit of $2.92 per share for the quarter, beating analysts' average estimate of $2.79.

FAQs

Q1. What is UnitedHealth Group Inc CEO?
A1. UnitedHealth Group Inc CEO is Stephen Hemsley.

Q2. What is UnitedHealth Group Inc earnings forecast?
A2. UnitedHealth Group Inc now sees 2025 adjusted profit per share to be at least $16.25, compared with its previous estimate of at least $16.00, and above analysts estimate of $16.20 per share, according to data compiled by LSEG.