UnitedHealth Group Posts $5.4 Billion Quarterly Profit as Medical Expenses Cool

UnitedHealth Group reported second quarter net income of $5.48 billion as medical costs dropped, triggering an improved financial outlook for the rest of the year, the company said July 16, 2026. In this photo is a general view outside the United Healthcare corporate headquarters on December 4, 2024 in Minnetonka, Minnesota. (Photo by Stephen Maturen/Getty Images)

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UnitedHealth Group announced on Thursday that it earned $5.48 billion in net income for the second quarter, helped by a decline in medical costs that prompted the company to lift its financial guidance for the remainder of 2026.

The parent company of UnitedHealthcare, the largest health insurer in the United States, revised its full-year 2026 adjusted net earnings forecast to between $19.50 and $20 per share. The update reflects performance through the first half of the year and a brighter outlook going forward, up from a previous projection of more than $17.75 per share.

The medical care ratio for the second quarter of 2026 came in at 86.7%, down from 89.4% in the same period a year earlier. This metric measures the share of premium revenue spent on medical claims. UnitedHealth attributed the improvement to disciplined benefit design and pricing, changes in membership mix, and cost-management initiatives.

For the quarter ended June 30, UnitedHealth recorded net income of $5.48 billion, or $6.04 per share, compared with $3.4 billion, or $3.74 per share, a year ago. Total revenue edged up to $112.03 billion from $111.6 billion, supported by growth in certain Optum health services and in employer and individual plans offered by UnitedHealthcare.

Several insurers have seen medical loss ratios climb to 90% or higher as providers work through a backlog of patient demand. UnitedHealth’s ratio reached 91.5% in the fourth quarter of last year. The industry generally favors ratios below 90%, closer to the mid-80s levels seen less than two years ago.

UnitedHealth has now kept its medical loss ratio under 90% for two straight quarters. The result also beat rival Elevance Health, which reported a second-quarter benefit expense ratio of 89.7%, up 80 basis points from a year earlier, in its earnings release Wednesday.

The improving cost trend follows decisions by new leadership to leave unprofitable Affordable Care Act markets and to exit numerous counties where privatized Medicare Advantage plans were offered. UnitedHealthcare, along with Aetna, Humana, and Elevance, has faced pressure controlling expenses for a record Medicare Advantage enrollment.

Those market exits reduced membership. UnitedHealthcare served about 48.5 million people in the second quarter, down from 49.8 million at the end of 2025 and 49 million at the end of the first quarter, a drop of 525,000 members.

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