Unitedhealth Group Stock Earnings Reports

Key points for investors: UnitedHealth reported adjusted EPS of $2.92 and revenue >$113 billion for Q3 2025, with total domestic membership above 50 million. Medical care ratio was 89.9% in the quarter (vs. 85.2% a year ago), and management says medical cost trends remain historically high but in line with prior guidance. The company is executing a broad recovery plan: extensive repricing across UnitedHealthcare (majority of risk books priced for 2026) intended to drive margin improvement next year; expected Medicare Advantage membership contraction of ~1 million in 2026 (product exits, pricing discipline); planned ACA rate increases (avg >25%) and targeted service-area reductions that may reduce ACA enrollment significantly; Optum Health will narrow networks, exit lower‑performing products (200k lives exited, VBC membership expected to decline ~10% in 2026) and refocus on value‑based care; Optum Insight and Optum Health will receive additional investments (AI, product modernization) while Optum Rx continues to grow (double‑digit pharmacy revenue growth and expanded rebate pass‑through). Management estimates the V28 Medicare cut as a >$6 billion headwind to enterprise in 2026 and expects to offset about half of that in Optum Health via payer contracting. They invested >$450 million this quarter in employee incentives and UnitedHealth Foundation contributions. Capital priorities: debt-to-capital ~44.1% (post-Amedisys $3.4B cash out), target ~40% by H2 2026; buybacks/acquisitions paused while deleveraging but could resume later in 2026; dividend policy unchanged. Company will give full 2026 guidance with Q4 results in January. Strategic target: return to solid earnings growth in 2026 and accelerate to sustainable double‑digit growth beginning in 2027, with long-term Optum Health margin targets of 6%–8%.