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UnitedHealth reported Q3 FY2026 revenue of $112.7 billion, compared with the consensus of $111.4 billion. The company reported adjusted EPS of $4.69, versus the consensus of $4.12.
Revenue was down −0.41% from $113.2 billion in Q3 FY2025, while diluted EPS was $4.77, up 84.1% from $2.59. UnitedHealth reported operating income of $6.6 billion and said the increase included a $610 million favorable reserve release. The company reported a 5.82% operating margin, compared with 3.81% a year earlier, and free cash flow of $4.3 billion, compared with $5.1 billion in Q3 FY2025.
UnitedHealth said Optum Health operating income was $735.0 million, while Optum operating income was $3.7 billion. UnitedHealthcare served 48,300,000 customers at September 2026.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $112.7 billion | $113.2 billion | −0.41% |
| Diluted EPS | $4.77 | $2.59 | 84.1% |
| Gross margin | 100.0% | 18.2% | 81.8 percentage points |
| Operating margin | 5.82% | 3.81% | 2.0 percentage points |
| Free cash flow | $4.3 billion | $5.1 billion | −15.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $4.69 | $4.12 | Beat by 13.8% |
| Revenue | $112.7 billion | $111.4 billion | Beat by 1.18% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On the latest provided earnings call, Stephen Hemsley said UnitedHealthcare had improved Medicare performance through benefit planning and design while addressing persistently elevated medical costs. He said Medicaid was performing in line with expectations as the company worked with states on appropriate rates, while Optum Health was building momentum as it returned to an integrated value-based care delivery model.
Analysts pressed executives on commercial cost trends and margins. Dan Kueter said commercial trend was modestly above 11%, citing the independent dispute-resolution process under the No Surprises Act, provider coding intensity, pharmacy costs and utilization patterns. He said the company was not achieving the full commercial margin expansion it had planned for 2026, and that elevated trends extended the timeline for full margin recovery past 2027.
Tim Noel said medical-cost trends remained high across UnitedHealthcare product lines compared with historical levels. He said Medicaid trends were largely in line with expectations, Medicare trends were below planning assumptions but did not represent an inflection point, and exchange-business results had no 2026 financial impact because UnitedHealth had pledged to return profits to consumers. Noel said the company would wait until the next call to provide a new 2026 Medicare trend point estimate.
Krista said Optum Health’s value-based care margins were in line with, and slightly better than, expectations, driven by medical and operating performance. She said the company was continuing care-management, clinical-management and operating initiatives, while investing in technology and workflow enhancements in the second half.
Sandeep said Optum Insight was slightly ahead of expectations in Q2, partly reflecting operational execution and AI efficiency gains, while remaining on track for its full-year guidance. Patrick Conway said UnitedHealth was using AI in care-management administration, prior authorization, clinical documentation and scheduling.
Guidance
UnitedHealth updated its FY2026 outlook to adjusted EPS of at least $20.50 and GAAP EPS of at least $19.50. The company changed its GAAP EPS outlook from a range to an at-least amount.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS, non-GAAP | FY2026 | $20.50 | — | New |
| EPS, GAAP | FY2026 | $19.50 | $19.50–$20.00 | Cut |
| Customers growth, Optum Rx | FY2026 | 95.0% | — | New |
| Debt | FY2026 | UnitedHealth Group remains on track to reduce its debt-to-capital ratio to approximately 40% by the end of 2026. | — | New |
| Share repurchases | FY2026 | $5.0 billion | — | New |
| Operating margin, Medicare | FY2026 | 3.00% | — | New |
| Customers, Medicare Advantage | FY2026 | 1,100,000 | — | — |
| Operating income, Optum Health | FY2026 | $2.2 billion | — | New |
| Operating income, Unitedhealthcare | FY2026 | $12.0 billion | — | New |