Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBy Amina NiasseThu, July 16, 2026 at 12:09 PM GMT+2 3 min readBy Amina NiasseNEW YORK, July 16 (Reuters) - UnitedHealth Group raised on Thursday its 2026 profit forecast as the company tightened spending on medical costs and improved operating income in its Optum health services business.Shares of the healthcare giant rose nearly 5% before the bell.Chief Financial Officer Wayne DeVeydt said cost controls in the Medicare health insurance business and increases in payments for Medicaid plans for low-income Americans helped second-quarter results.On an adjusted basis, UnitedHealth earned $6.38 per share in the second quarter, compared with an average analyst estimate of $4.90, according to data compiled by LSEG."These results are not a reflection of a trend bending or coming under control, but rather our efforts to start pushing down what is already an elevated number," said DeVeydt.UnitedHealth now expects 2026 adjusted profit per share of $19.50 to $20.00 compared with its original forecast of at least $17.75. Analysts expect profit of $18.47 per share for 2026, according to data compiled by LSEG.CEO Stephen Hemsley returned to the helm last year after the health insurance company missed financial estimates and suffered a nationally disruptive ransomware attack, and after a top executive was killed outside its investor meeting.Hemsley has refocused the organization and refreshed half of its top leadership, exited some health insurance products, and committed $1.5 billion to invest in artificial intelligence.COST CONTROLSUnitedHealth reported a second-quarter medical cost ratio - the percentage of premiums spent on medical care - of 86.70%, better than analysts' estimate of 88.47% and the year earlier's 89.4%.Health insurance unit UnitedHealthcare reported second-quarter revenue of $86 billion compared with $86.1 billion in the same quarter last year, while overall revenue rose to $112 billion from $111.6 billion. That beat analyst expectations of about $111 billion, according to LSEG.The company said insurance plan design changes and new pricing on products led to improvement in its medical cost ratio.Higher costs for insurance drove membership decline, particularly for people purchasing plans through the Obamacare marketplace, where extra pandemic-era government subsidies expired, said DeVeydt.UnitedHealthcare expects 500,000 people to disenroll from Obamacare plans in 2026, DeVeydt said.The company kept its overall revenue outlook for 2026 unchanged at $439 billion, DeVeydt said.OPTUM IMPROVEMENTOn a yearly basis, second-quarter operating income for Optum increased 29% to $4 billion, driven by improved operations at technology segment Optum Insight and better access to care in its clinical unit.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info