UnitedHealth Beats Q1 Expectations And Raises Full-Year Profit Outlook, Shares Rise 8%

UnitedHealth Group (NYSE:UNH) reported first-quarter results that exceeded analyst expectations on both earnings and revenue, while also issuing a full-year profit outlook above forecasts, driving shares 8% higher in pre-market trading on Tuesday.

The company posted adjusted earnings per share of $7.23, surpassing the consensus estimate of $6.59. Revenue reached $111.7 billion, ahead of the $109.44 billion expected by analysts.

Looking forward, UnitedHealth projected full-year 2026 adjusted earnings of at least $18.25 per share, exceeding the consensus estimate of $17.87.

Performance across its Optum segments was mixed. Optum Rx, the pharmacy benefits division, generated revenue of $35.7 billion, representing a 2% increase year-over-year, driven by growth in specialty pharmacy services but partially offset by membership declines at UnitedHealthcare.

Optum Insight reported relatively flat revenue at $5.1 billion, while Optum Health revenue declined 3% to $24.1 billion due to a reduction in value-based care membership.

The company reported a net margin of 5.6% for the quarter, slightly lower than 5.7% in the prior-year period. Operating cash flow totaled $8.9 billion, equivalent to 1.4 times net income, and the company’s debt-to-capital ratio stood at 42.9% as of March 31.