UnitedHealth Group (NYSE:UNH) exceeded Wall Street’s third-quarter expectations, while its Optum Health division reported operational improvements and the company outlined a multi-year path toward stronger margins despite a year-over-year decline in the unit’s revenue.

Optum CEO Patrick Conway told investors Wednesday that the unit’s recovery is centered on a "continued return to value-based care principles." Optum reported a 27% year-over-year increase in online appointment self-scheduling and a 10% rise in home health visits, Conway said during the company’s earnings call.

Optum Health revenue fell 10% year-over-year to $22.9 billion, driven by fewer value-based care patients in markets where it lacked sufficient scale to support clinicians. Meanwhile, Optum Insight revenue rose 3% to $5.5 billion, and Optum Rx generated $39.9 billion. In September, UnitedHealth sold a stake in certain Florida-based Optum Health operations to TPG Inc. (NASDAQ:TPG).

"It is now more important than ever to provide seamless care and coverage for our chronic and complex patients through all phases of the care continuum, from primary care to specialist, to home to the pharmacy," Conway said.

Optum Health’s Margin Goal Could Take Years

Krista Nelson, Optum Health’s CEO, said the division’s medical management and clinical programs should remain "durable" through 2027. Optum Health serves about 20 million patients, including 4 million covered through fully accountable care arrangements. Nelson identified accountable care and shared-savings models as continuing growth opportunities.

She said reaching Optum Health’s 6% to 8% margin target will take time, describing the effort as "a multi-year journey to make sure we’re pacing appropriately."

UnitedHealth Raises 2026 Outlook

UnitedHealth Group beat third-quarter earnings estimates and raised its 2026 adjusted earnings outlook to at least $20.50 per share, up from its previous range of $19.50 to $20. Management also told analysts that their 2027 estimates appear conservative.

The medical care ratio improved to 88.4% from 89.9%, driven by plan design and pricing changes. The company said the third-quarter results reflect progress from actions taken throughout 2026 and support confidence in achieving the company’s long-term annual growth target of 13% to 16% from 2027 onward.

The company is also introducing AI-powered Medicare Advantage plan recommendations based on members’ care histories and local options. It expects to complete previously announced prior authorization reforms by year-end, cutting total prior authorizations by 30% and those for patients under 18 by two-thirds, while speeding up decisions and reducing administrative burdens for clinicians.

Benzinga’s Edge Rankings place UnitedHealth in the 21st percentile for quality and the 56th percentile for momentum, reflecting its average performance in both areas. Benzinga’s screener allows you to compare UNH’s performance with its peers.  

Price Action: On a year-to-date basis, UNH shares surged 14.43%, as per Benzinga Pro. In Wednesday’s pre-market session, it is trading 0.45% higher at $379.47.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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