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What happened: UnitedHealth Group (UNH) stock rose more than 8% in early trading on Tuesday.
What’s moving the stock: The health insurer beat Wall Street’s earnings expectations and raised its full-year profit forecast.
Revenue in the first quarter grew to $111.7 billion, higher than the $109.2 billion anticipated by analysts.
Earnings per share of $7.23 also beat estimates of $6.57. The company forecast full-year adjusted earnings per share above $18.25, up from a prior forecast of $17.75. Wall Street was expecting $17.83.
UnitedHealth Group’s medical cost ratio, or the percentage of premiums spent on medical care, was 83.9% for the first quarter of 2026, down 90 basis points from the first quarter of 2025. This closely watched metric, used by Wall Street as a gauge of costs, came in below expectations of 85.6%.
What else you should know: UnitedHealth is seen as a bellwether for the healthcare sector. The company is undergoing a turnaround plan launched last year to combat falling profits, high medical costs, and regulatory headwinds.
Earlier this year, the stock sold off sharply after the Trump administration proposed a lower-than-expected increase for 2027 Medicare Advantage plans.
The stock is down more than 20% over the past year and 3% year to date.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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