UnitedHealth beats first-quarter estimates and raises 2026 profit forecast amid recovery effort

US healthcare conglomerate UnitedHealth has lifted its full-year profit outlook and delivered first-quarter results ahead of analyst expectations, offering early evidence that a period of elevated costs and operational turbulence may be stabilising under renewed leadership.

According to RTÉ, the company now expects 2026 adjusted profit per share to exceed $18.25 (€15.40), an increase of 50 cents from its prior forecast, against analyst expectations of $17.86 per share based on data compiled by LSEG. First-quarter adjusted profit came in at $7.23 per share, beating estimates by 66 cents.

UnitedHealth's first-quarter medical cost ratio the proportion of premiums spent on medical care stood at 83.9%, significantly below analyst estimates of 85.70%, a result that underpinned the improved outlook.

CFO Wayne DeVeydt said the company is maintaining a measured approach to guidance. "You may say, 'It looks like you beat the quarter by more than that. Why not raise by more?' We like to believe our execution is the primary driver, but we want to see if any of these trends change in April and May."

CEO Stephen Hemsley, who assumed the role almost a year ago, has overseen a series of structural changes aimed at restoring investor confidence following a difficult period that included escalating medical costs, a federal probe, criticism of insurance industry practices and the death of a senior executive. Measures undertaken include exiting non-US businesses and certain health plans, leadership restructuring and increased investment in artificial intelligence.

Revenue at Optum Rx, UnitedHealth's pharmacy benefit manager, rose 2% to $35.7 billion (€30.1 billion), while Optum Health, which provides primary care, generated revenue of $24.1 billion (€20.3 billion).

Read the complete report for a full breakdown of UnitedHealth's quarterly results and revised outlook