Company Reports

On July 16, UnitedHealth reported second-quarter results, including roughly steady revenue at $112 billion (versus FactSet consensus of $111 billion) and 56% adjusted EPS growth to $6.38 (versus consensus of $4.91), mostly on margin expansion. The firm also raised its 2026 guidance.

UnitedHealth Group operates a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). Historically, this integrated strategy resulted in some of the best returns in the managed care industry that others have attempted to copy, including CVS Health, which added Aetna's medical insurance assets to its retail stores and PBM, and Cigna, which added Express Scripts' PBM assets to its medical insurance base. But recent margin pressures and regulatory concerns have added uncertainty to the story.

After the market closed on May 15, Berkshire Hathaway revealed recent portfolio moves in a regulatory filing that included the complete sale of its stake in UnitedHealth, less than a year after the position was revealed in August 2025. Shares fell in early trading on May 18.

On April 21, UnitedHealth reported first-quarter results that included 2% revenue growth and flat adjusted earnings per share. Management also raised its 2026 outlook to adjusted EPS of at least $18.25, from at least $17.75 previously. The shares rallied about 9% in early trading on the news.

After hours on April 6, the Centers for Medicare & Medicaid Services released its final rate notice for the 2027 Medicare Advantage program, which included a 2.5% overall increase, compared with a flat initial rate notice in late January.

UnitedHealth Group operates a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). Historically, this integrated strategy resulted in some of the best returns in the managed care industry that others have attempted to copy, including CVS Health, which added Aetna's medical insurance assets to its retail stores and PBM, and Cigna, which added Express Scripts' PBM assets to its medical insurance base.

After a disappointing Medicare Advantage initial rate notice after hours on Jan. 26, UnitedHealth reported its fourth-quarter results and provided EPS guidance for 2026 of greater than $17.75, or roughly in line with initial expectations. Shares fell nearly 20% in early trading on Jan. 27, though.

After hours on Jan. 26, the Centers for Medicare & Medicaid Services released its initial rate notice for the 2027 Medicare Advantage program, which included a flat overall rate increase rather than the 5% increase in 2026. Most of that differential is related to new risk assessment-related changes.

According to the Wall Street Journal, a US Senate committee has reported "aggressive" risk-adjustment tactics in Medicare Advantage at UnitedHealth, although no formal recommendations were made and no wrongdoing was found. UnitedHealth shares were down about 1% in premarket trading on this news.

On Nov. 9, the US Senate agreed to terms that would reopen the US federal government after a record shutdown period. However, the solution did not include a plan to extend federal subsidies on the individual exchanges.

UnitedHealth turned in third-quarter results that were slightly higher than consensus on the bottom line, despite the 59% adjusted EPS decline year over year on 12% revenue growth. Management also increased its adjusted EPS guidance by $0.25 to at least $16.25 in 2025.

UnitedHealth Group operates a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). Historically, this integrated strategy resulted in some of the best returns in the managed care industry that other MCOs have attempted to copy, including CVS Health that added Aetna's medical insurance assets to its retail stores and PBM and Cigna that added Express Scripts' PBM assets to medical insurance base. With the alignment of these interests, we think vertically integrated organizations like UnitedHealth have the opportunity to help bend the healthcare cost curve in the US. However, questions continue to swirl around whether UnitedHealth's pursuit of profits outweighs those potential benefits to the system.

After hours on Aug. 14, Berkshire Hathaway revealed that it had accumulated a 5 million share position in UnitedHealth worth about $1.6 billion. Shares in UnitedHealth soared over 10% in after-hours trading, and the other managed care organizations we cover also rose.

UnitedHealth Group operates a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). Historically, this integrated strategy resulted in some of the best returns in the managed care industry that other managed care organizations have attempted to copy, including CVS Health that added Aetna's medical insurance assets to its retail stores and PBM and Cigna that added Express Scripts' PBM assets to medical insurance base. With the alignment of these interests, we think vertically integrated organizations like UnitedHealth have the opportunity to help bend the healthcare cost curve in the US. However, questions continue to swirl around whether UnitedHealth's pursuit of profits outweighs those potential benefits to the system.

In the second quarter, UnitedHealth delivered 13% revenue growth, but adjusted EPS declined 40%, as its medical insurer and value-based caregiver absorbed elevated medical costs. To reflect this dynamic, UnitedHealth reinstated 2025 guidance at lower levels, including at least $16 of adjusted EPS.

After proactively reaching out to the Department of Justice following recent reports in The Wall Street Journal, UnitedHealth announced that it was cooperating with criminal and civil investigations about its Medicare Advantage program. Shares fell about 2% after this announcement.

The Centers for Medicare and Medicaid Services announced plans to increase regulation of the Medicare Advantage market to curb overpayments to private insurers like UnitedHealth.

UnitedHealth Group operates a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). Historically, this integrated strategy resulted in some of the best returns in the managed care industry that other managed care organizations have attempted to copy, including CVS Health that added Aetna's medical insurance assets to its retail stores and PBM and Cigna that added Express Scripts' PBM assets to medical insurance base. With the alignment of these interests, we think vertically integrated organizations like UnitedHealth have the opportunity to help bend the healthcare cost curve in the US. However, questions continue to swirl around whether UnitedHealth's pursuit of profits outweighs those potential benefits to the system.

UnitedHealth Group operates a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). Historically, this integrated strategy resulted in some of the best returns in the managed care industry that other managed care organizations have attempted to copy, including CVS Health that added Aetna's medical insurance assets to its retail stores and PBM and Cigna that added Express Scripts' PBM assets to medical insurance base. With the alignment of these interests, we think vertically integrated organizations like UnitedHealth have the opportunity to help bend the healthcare cost curve in the US, but questions continue to swirl around whether the MCO industry's pursuit of profits outweighs those broader benefits for the US health system.

The Wall Street Journal reported on May 14 that a criminal component had been added to an already-reported civil investigation of UnitedHealth's risk-rating practices in Medicare Advantage. UnitedHealth later responded that it had not been notified of the criminal probe.