UnitedHealth Group (UNH) investor relations material

Executive summary

• Second quarter 2026 revenues reached $112.0 billion, flat to slightly up year-over-year, with strong performance in Medicare Advantage and Optum Health, while commercial benefits remain pressured by elevated cost trends.

• Earnings from operations rose 55% to $8.0 billion, driven by improved cost management and favorable reserve development.

• Adjusted EPS for Q2 was $6.38, up from $4.08 year-over-year; reported EPS was $6.04; net margin was 4.9%.

• Cash flows from operations totaled $11.1 billion for Q2 and $20.0 billion for the first half, reflecting strong earnings and disciplined working capital management.

• The organization is focused on modernization, affordability, transparency, and leveraging AI to improve operational efficiency and healthcare experiences.

Financial highlights

• Total revenues for Q2 were $112 billion; for the first six months, $223.8 billion, up 1% year-over-year.

• Operating earnings grew 55% to $8 billion; net earnings for the first half were $12.2 billion, up 21% year-over-year.

• Medical care ratio improved to 86.7% from 89.4% in Q2 2025, aided by $860 million in net favorable prior period medical development.

• Operating cost ratio rose to 12.7% from 12.3% year-over-year, reflecting investments in technology and community support.

• Return on equity for the first half was 24.3%, up from 20.6% in 2025.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $19.50–$20.00; reported EPS expected at $18.45–$18.95.

• Operating earnings outlook increased for UnitedHealthcare (at least $12 billion) and Optum Health (at least $2.2 billion).

• Full-year medical care ratio expected at 88.1% ± 25 bps; operating cost ratio at the higher end of the range due to investments.

• Commercial margin recovery now expected beyond 2027 due to persistent cost trends.

• Management expects elevated medical cost trends and competitive pressures to persist.