UnitedHealth Group reported first-quarter adjusted earnings per share of $7.23 on revenue of $111.7 billion, beating Wall Street estimates on both measures. The company also raised its full-year adjusted EPS guidance to above $18.25.
Why it matters
UnitedHealth is the largest health insurer in the United States, covering more than 50 million people. Its financial health serves as a barometer for the entire managed care industry, which has been under pressure from rising medical costs and Medicaid membership losses since mid-2025.
The numbers
The medical care ratio, which measures the percentage of premium revenue spent on medical claims, came in at 83.9%. That figure was better than analysts had expected and suggests the company is regaining control over costs that spiralled in 2025.
Revenue of $111.7 billion represented 2% growth year-over-year. While modest by UnitedHealth’s historical standards, the result was notable given that the company had warned in January of its first revenue decline in decades.
The January shock
UnitedHealth shares lost roughly 20% in late January after the company paired its Q4 2025 results with 2026 revenue guidance of “greater than” $439 billion, approximately 2% below the prior year and well short of analyst expectations near $454 billion. The guidance cut was driven primarily by Medicaid redeterminations, which removed millions of members from state-run plans nationwide.
Recovery trajectory
The Q1 beat and raised guidance suggest the worst of the Medicaid headwind may have passed. Management indicated that membership stabilisation is ahead of internal projections.
Yet the stock, trading near $277, remains 54% below its 52-week high of $606.36. Analysts remain divided on whether the recovery in fundamentals can translate into sustained share price gains given the broader political uncertainty around healthcare policy and reimbursement rates.