UnitedHealth Group Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 16 July 2026: press release. Guidance figures: 10 raised, 2 lowered, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Earnings per share rose year over year: Diluted EPS was $6.04 against $3.74 a year earlier; adjusted EPS was $6.38 against $4.08. Earnings from operations were $8.0 billion against $5.2 billion, with a 4.9% net margin. Source
• Full-year EPS guidance raised: The full-year diluted EPS range is now $18.45 to $18.95 and adjusted EPS $19.50 to $20.00, up from greater than $17.35 and $18.25 in the April release. Source
• UnitedHealthcare margin rose to 4.6%: UnitedHealthcare earnings from operations were $3.9 billion on revenues of $86.0 billion, after $5.7 billion and a 6.6% margin in the first quarter. Source
• Optum margin up 160 basis points: Optum earnings from operations were $4.0 billion on revenues of $65.7 billion, against $3.1 billion a year earlier; the margin was 6.2% against 4.6%. Source
• Medical care ratio down 2.7 points: The medical care ratio was 86.7% against 89.4% a year earlier. The company credited benefit design and pricing discipline, member mix and medical cost management initiatives. Source
• Favorable prior-period reserve development: Net favorable prior period development was $860 million and affected the medical care ratio; the majority relates to 2026 dates of service. Source
• Operating cash flow of $11.1 billion: Cash flows from operations were $11.1 billion, or 1.9 times net income. The company tied the level to the timing of a substantial government payment and working capital management. Source
• Buybacks on track for $5 billion: The company repurchased $4.0 billion of common stock through mid-July 2026 and is on track to buy back at least $5.0 billion for the full year. Source

“Our results and outlook reflect the continuing progress in our work to simplify how we operate, improve both affordability and the health care experience for patients and care providers and apply modern technology to create real improvement for people,”

Stephen Hemsley, chief executive officer of UnitedHealth Group

Guidance

What changed from last quarter

• Guidance raised: Full-year diluted and adjusted EPS guidance raised from April levels. Source
• Guidance raised: Full-year net earnings, operating earnings, cash flow and share repurchase guidance raised. Source
• Guidance lowered: Full-year medical care ratio and tax rate guidance lowered. Source
• New: Voluntary elimination and rebating of individual ACA profits in 2026, not mentioned in the April release. Source
• New: $1 billion commitment to the United Health Foundation for rural, maternal, children's and behavioral health. Source
• New: Fee-based pharmacy care model launched, decoupling PBM pricing from drug list prices and prescription volume. Source
• New: Prior approval reduction program, with 30% of current volume eliminated by the end of 2026. Source
• New: Alegeus acquisition completed on July 2, 2026. Source
• New: Independent review of the HouseCalls program released. Source

Consolidated results and guidance

• Earnings per share rose year over year: Diluted EPS was $6.04 against $3.74 a year earlier; adjusted EPS was $6.38 against $4.08. Earnings from operations were $8.0 billion against $5.2 billion, with a 4.9% net margin. Source
• Full-year EPS guidance raised: The full-year diluted EPS range is now $18.45 to $18.95 and adjusted EPS $19.50 to $20.00, up from greater than $17.35 and $18.25 in the April release. Source
• Revenue rose modestly: Revenues were $112.0 billion against $111.6 billion a year earlier and $111.7 billion in the first quarter, with premiums of $86,956 million. Source

Segment results

• UnitedHealthcare margin rose to 4.6%: UnitedHealthcare earnings from operations were $3.9 billion on revenues of $86.0 billion, after $5.7 billion and a 6.6% margin in the first quarter. Source
• Optum margin up 160 basis points: Optum earnings from operations were $4.0 billion on revenues of $65.7 billion, against $3.1 billion a year earlier; the margin was 6.2% against 4.6%. Source
• Optum Health revenue down 5%: Optum Health revenues were $23.5 billion, down 5% from a year earlier, after about 700,000 fewer value-based-care patients were served. Its earnings from operations were $1.2 billion, a 5.1% margin. Source
• Optum Insight earnings rose: Optum Insight earnings from operations were $1.4 billion against $1.2 billion, which the company attributed to operational improvements and timing of contracts, on $5.4 billion of revenue. Source
• Optum Rx revenue and scripts eased: Optum Rx revenues were $38.3 billion against $38.5 billion, and earnings from operations were $1.5 billion against $1.4 billion. Adjusted scripts fell to 387 million from 414 million. Source

“UnitedHealth Group remains committed to addressing the issues that make health care costly and complicated for the people and providers we serve.”

UnitedHealth Group Inc., press release

Membership and customer mix

• UnitedHealthcare served fewer people: UnitedHealthcare served 48.5 million people at June 30, 2026, against 49.1 million at March 31 and 50.1 million a year earlier. Source
• Medicare Advantage seniors declined: Seniors in Medicare Advantage, including complex populations also in Medicaid, fell by 965,000 since year-end 2025. Medicare and Retirement revenues were $42.4 billion against $42.6 billion. Source
• Louisiana exit and Medicaid rules: Community and State served 380,000 fewer people, mainly from the planned exit from the Louisiana health plan and ongoing Medicaid eligibility requirements. Revenues were $23.6 billion. Source
• Employer and Individual attrition: Employer and Individual served 145,000 fewer people from attrition in employer self-funded and fully-insured products, with revenues of $20.0 billion. Source

Medical costs and reserve development

• Medical care ratio down 2.7 points: The medical care ratio was 86.7% against 89.4% a year earlier. The company credited benefit design and pricing discipline, member mix and medical cost management initiatives. Source
• Favorable prior-period reserve development: Net favorable prior period development was $860 million and affected the medical care ratio; the majority relates to 2026 dates of service. Source
• Operating cost ratio up 0.4 points: Operating costs were $14,268 million against $13,778 million a year earlier, reflecting investments in technology, processes and people, according to the company. Source
• Claims payable days at 47.0: Days claims payable were 47.0, against 48.6 in the first quarter and 44.5 a year earlier; the company attributes the sequential change to normal seasonality. Source

Cash, debt and share repurchases

• Operating cash flow of $11.1 billion: Cash flows from operations were $11.1 billion, or 1.9 times net income. The company tied the level to the timing of a substantial government payment and working capital management. Source
• Debt-to-capital ratio at 41.2%: Debt-to-capital was 41.2% at June 30, 2026, against 42.9% at March 31 and 44.1% a year earlier. The company continues to target about 40.0%. Source
• Buybacks on track for $5 billion: The company repurchased $4.0 billion of common stock through mid-July 2026 and is on track to buy back at least $5.0 billion for the full year. Source

Affordability and access commitments

• ACA plan profits rebated: The company committed to voluntarily eliminate and rebate profits from individual ACA offerings in 2026, returning the money to about 1 million members. Source
• Prior approval volume cut 30%: The company plans to eliminate 30% of current prior approval volume by the end of 2026, and to cut nearly two-thirds of pediatric prior approval requirements. Source
• Fee-based pharmacy model launched: The pharmacy care model decouples PBM pricing from drug list prices and prescription volume, and adds digital tools to compare medication costs upfront. Source
• Rebate pass-through by 2028: The company committed to pass 100% of manufacturer drug rebate discounts through to clients by January 1, 2028. Source
• Rural hospitals get faster payments: Support for 1,500 rural hospitals includes accelerated payments, reimbursement timelines cut in half, and exemption from most medical prior approval requirements. Source

Strategy, acquisitions and portfolio

• Alegeus acquisition completed: Optum Insight completed the Alegeus acquisition on July 2, 2026, expanding consumer-directed health account capabilities. The April release expected closing in the back half of 2026. Source
• Optum Health recentering value-based care: Optum Health reported steady momentum as the business recenters on its integrated value-based care delivery model, with better access and provider satisfaction. Source
• South American businesses still held for sale: Net incremental losses on businesses held for sale, including remaining South American operations, were $61 million for the quarter and are excluded from adjusted results. Source
• $1 billion committed to foundation: The company committed $1 billion to the United Health Foundation for rural health, maternal and children's health, and behavioral health. Source

Governance and leadership

• New board committee and directors: The board created a Public Responsibility Committee, named a Lead Independent Director and committee chairs, and added a new independent director. Source
• Leadership roles refreshed: The company refreshed leadership roles and said it is re-energizing its culture and commitment to mission. Source
• HouseCalls review supports diagnoses: An independent review of the HouseCalls program found sampled diagnoses overwhelmingly supported by medical records, at an error rate nearly three times lower than CMS audits. Source

Coming up, as management said on 16 July 2026

• Electronic prior approval standard: More than 70% of UnitedHealthcare prior approvals are expected to be included in standardized electronic submissions by the end of 2026. Source
• Doula coverage eligibility by 2027: Doula care coverage under employer-sponsored plans is expected to make more than 7 million members eligible by January 2027. Source

Figures management reported

Risks management discussed

• Regulatory: The ACA rebate depends on Congress, which is working toward longer-term solutions for the stability and affordability of these plans. Source
• Demand: Community and State membership fell by 380,000, driven by the Louisiana plan exit and Medicaid eligibility requirements. Source
• Operational: The operating cost ratio rose to 12.7% as the company continues investing in technology, processes and people. Source
• Financial: Losses on businesses held for sale, including remaining South American operations, were $61 million for the quarter. Source

Earlier plans management reported on

• On track: Management says the company is on track for at least $5.0 billion of share repurchases for the full year 2026. Source
• Not stated: The April release said about 40.0% would be reached in the back half of 2026; this release says the target is by year-end. Source
• Met: The acquisition was completed on July 2, 2026, matching the timing the first-quarter release had expected. Source
• Not stated: Target stated for the end of 2026; this release gives no progress figure against it. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.