UnitedHealth (NYSE: UNH) posted third quarter financial performance that weakened from year-ago levels but nevertheless exceeded market expectations.
Compared with earnings of $2.92 per share reported during the same quarter last year, UnitedHealth delivered adjusted earnings of $4.69 per share while outperforming analyst expectations of earnings of $4.15 per share.
The company recorded quarterly revenue of $112.69 billion, above analyst projections of $111.40 billion despite softer annual sales comparisons.
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Providing a business outlook, UnitedHealth released forward earnings outlook for the fiscal year 2026 at $20.50 per share, compared with analyst estimates of $16.35 per share.
In the third quarter of 2026, UnitedHealth's medical care ratio improved to 88.4 percent from 89.9 percent in the same period of 2025, driven by medical cost management initiatives and enhancements in care delivery. Net medical reserve development for the quarter was $610 million related to 2026 service dates.
Days claims payable remained steady at 47.0 compared to the second quarter of 2026, while days sales outstanding decreased to 16.9 from 17.7 in the previous quarter and 18.6 in the third quarter of 2025. The operating cost ratio for the third quarter of 2026 was reduced to 12.8 percent from 13.5 percent a year earlier, reflecting operational efficiencies despite increased investments in technology and care delivery improvements.
Stephen Hemsley, chief executive officer of UnitedHealth Group, said, “Our third quarter results reflect the discipline and execution our teams are bringing to every part of our business, as we continue evolving UnitedHealth Group to deliver a simpler, more supportive experience for patients and the clinicians who care for them."