Overview
- UnitedHealth, which reported Tuesday, beat first-quarter forecasts with $7.23 in adjusted EPS on $111.7 billion in revenue and raised its 2026 outlook to above $18.25 per share.
- Shares jumped roughly 6% to 10% after the release as management also committed to at least $2 billion in buybacks by the end of the second quarter.
- The medical benefit ratio improved to 83.9%, meaning the company kept more premium dollars after paying claims through tighter cost controls and reserve releases.
- The company shrank membership to about 49.1 million by exiting weaker contracts, including a drop of about 965,000 Medicare Advantage members in the quarter.
- Optum’s earnings stayed under pressure, with operating income down about 15% to $3.3 billion, while a 2.48% Medicare Advantage rate boost and a $1.5 billion AI push are intended to shore up margins.