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UnitedHealth Group Stock Rises on Earnings. Here’s Why.

Oct 27, 2025 16:15:00 -0400 by Josh Nathan-Kazis | #Healthcare #Earnings Report

UnitedHealth posted better-than-expected third-quarter earnings and hiked its full-year guidance. (Dreamstime)

Key Points

Shares of UnitedHealth Group gained in premarket trading Tuesday after the healthcare giant posted better-than-expected third-quarter earnings and hiked its full-year guidance.

Adjusted earnings of $2.92 a share surpassed the $2.80 analysts had forecast, according to FactSet. Revenue rose to $113.2 billion from $100.8 billion a year ago, in line with the $113 billion Wall Street expected.

The company raised its full-year adjusted earnings outlook to at least $16.25 a share, up from at least $16 previously.

“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,” CEO Stephen Hemsley said in a statement.

Revenue rose 16% to $87.1 billion at the company’s UnitedHealthcare insurance segment. The metric was flat year over year at Optum Health, at $25.9 billion. OptumRx, the company’s pharmacy benefits manager, posted revenue of $39.7 billion, up 16% from last year.

Notably, UnitedHealth’s medical-loss ratio, or the share of premium revenue spent on medical claims and quality improvement, came in at 89.9%, below analysts’ calls for 90.7%.

Shares climbed 4.1% following the report. Smaller healthcare peers Elevance Health and Humana got a boost from the results, rising 1.6% and 2.5%, respectively.

This is breaking news. Read a preview of UnitedHealth Group’s earnings below and check back for more updates.

UnitedHealth Group shares have climbed steadily over the past three months, as the company has struggled to recover from the historic selloff in the spring, when it slashed guidance and booted its CEO.

The stock is still down 28% this year, but it’s up 45% since the start of August, thanks in no small part to the disclosure that Berkshire Hathaway had taken a significant stake.

The big test comes Tuesday, when UnitedHealth reports third-quarter results and investors see whether Warren Buffett’s enthusiasm for the stock was well-founded.

Investors aren’t expecting any big surprises on Tuesday. In a securities filing in early September, UnitedHealth reaffirmed the earnings guidance that its new CEO, Stephen Hemsley, set in July. That would seem to make a guidance cut on Tuesday unlikely.

Instead, the questions are about what sort of hints management will offer about anticipated performance next year, and whether the broader recovery Hemsley had promised remains on track.

In its second-quarter earnings report, UnitedHealth said to expect full-year adjusted earnings of at least $16 per share and full-year revenue of between $445.5 billion and $448 billion. That guidance replaced the earlier estimates released under its prior CEO, Andrew Witty; the company pulled that guidance in May.

Analysts now expect UnitedHealth to report third-quarter earnings of $2.80 per share on sales of $113 billion, according to FactSet. Analysts expect a medical loss ratio, which measures the proportion of premiums paid out to cover medical expenses, of 90.7%.

This earnings season comes at a complex moment for the insurance industry. Medicare Advantage, the government-funded program for U.S. seniors that has been behind much of the recent trouble for the sector, remains a question mark. Medicaid, meanwhile, is set to undergo significant changes as a result of the One Big Beautiful Bill Act, which could lead to decreased enrollment, and the plans offered on the Affordable Care Act exchanges are set to see their premiums skyrocket as subsidies come to an end.

UnitedHealth will report its results early Tuesday and hold an investor conference call at 8 a.m. Eastern time.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com and Mackenzie Tatananni at mackenzie.tatananni@barrons.com