UnitedHealth (UNH) has posted a number of profit warnings over the last year. These profit warnings - and some other issues - have resulted in its stock price falling substantially. The company has been working hard to turn things around in recent months, however. And third-quarter1 earnings, released on October 28, showed progress. Here’s a look at some highlights from the Q3 report.
Solid Q3 Earnings
UnitedHealth’s Q3 earnings were better than expected. For the quarter, revenue amounted to $113.2 billion, up 12% year-over-year, and higher than the consensus forecast of $113.162 billion. Meanwhile, adjusted earnings per share (EPS) came in at $2.92 versus $2.793 expected. Cash flow from operations was $5.9 billion - 2.3 times net income.
Diving deeper into the earnings, UnitedHealthcare revenues grew 16% year over year to $87.1 billion, driven by growth in Medicare & Retirement and Community & State. As for Optum, revenues here grew 8% year over year to $69.2 billion, driven by strong growth at Optum Rx, UnitedHealth’s pharmacy benefit manager. For the quarter, the company’s medical loss ratio - the percentage of premiums spent on medical care - stood at 89.9%. This was in line with analysts’ estimates; however, health insurers typically aim for a ratio of around 80%.
Guidance Raised Slightly
In terms of guidance, UnitedHealth said that it now expects adjusted net earnings of at least $16.25 per share for 2025. Its previous guidance was $16.00. As for 2026 guidance, CEO Stephen Hemsley - who returned to the company in May after leading it between 2006 and 2017 - said that a forecast would be provided in January. He noted here that the company is positioning itself for "durable and accelerating growth in 2026 and beyond."
Wall Street’s Views
Commenting on the results, Oppenheimer analyst Michael Wiederhorn said that UnitedHealth has begun the process of fixing the business under new management, and that the Q3 results suggest that things are on track. This echoed sentiment from analysts at other firms, who also noted that the results showed progress in turning things around.
The Outlook for UNH Stock
As for where UNH stock goes from here, however, analysts4 appear to be divided. While some Wall Street firms, such as Deutsche Bank and TD Cowen, see the stock as fully valued after its recent move higher, others, such as Piper Sandler and RBC Capital, have price targets in excess of $400.
Footnotes:
1UnitedHealth Group, UnitedHealth Group Reports Third Quarter 2025 Results and Raises Full Year 2025 Earnings Outlook, as of October 28, 2025
2Proactive, UnitedHealth raises full-year guidance as Q3 earnings beat estimates, as of October 28, 2025
3Reuters, UnitedHealth raises 2025 profit forecast, expects 2026 pressure on Medicaid business, as of October 28, 2025
4Tipranks, UnitedHealth (UNH) Stock Forecast & Price Target, as of October 28, 2025
