UnitedHealth Group (UNH) shares rose in premarket trading as analysts assessed the healthcare giant's third-quarter 2026 results. Adjusted earnings per share (EPS) of $4.69 easily beat the consensus of $4.14, while the medical care ratio (MCR) came in better than expected. Revenue of $112.69 billion also surpassed expectations of $111.31 billion.

Analysts are now assessing the company's earnings outlook and Medicare Advantage business as attention shifts to 2027.

TD Cowen Maintains Hold Rating on UNH

TD Cowen analyst Ryan Langston reiterated his Hold rating on UNH with a $402 price target, implying 6.4% upside. Langston noted that the company maintained its 2027 earnings outlook, with adjusted EPS of $20.50 serving as the starting point. UNH expects earnings growth at the lower end of its long-term 13%-16% target range, which Langston considers a cautious approach.

He also highlighted positive signs in Medicare Advantage. UNH expects the share of members enrolled in plans rated four stars or higher to rise from 69% to about 75%. The company also aims to reach the upper end of its 2%-4% Medicare Advantage profit margin target.

At OptumHealth, UNH expects earnings and profit margins to improve through 2027 and 2028, although Q4 is typically a weaker period. However, rising healthcare costs and payment disputes remain challenges. Expensive specialty drugs and increasing costs charged by healthcare providers are also putting pressure on the business.

Mizuho Names UNH a 'Top Pick'

Mizuho analyst Ann Hynes reiterated her Buy rating on UNH with a $493 price target, implying 30.5% upside. Hynes highlighted the company's strong third-quarter results, with adjusted EPS beating consensus estimates by 13%. She also pointed to continued margin improvement, with trends meeting or exceeding expectations across all business segments.

UNH's MCR came in 1.5 percentage points below consensus expectations, helped by a $610 million benefit from prior-period developments. Even excluding this benefit, the ratio was better than expected. A lower MCR means UNH spends a smaller share of its premium revenue on medical claims, which can support profitability.

Hynes attributed the strong results mainly to UnitedHealthcare and OptumHealth. She identified 2027 earnings growth, Medicare Advantage membership, Star Ratings, and medical cost trends as key factors to watch.

Is UNH Stock a Buy?

On TipRanks, UNH has a Strong Buy consensus rating based on 16 Buys and four Hold ratings. The average UnitedHealth price target of $485.59 implies 28.5% upside potential from current levels. Year-to-date, UNH shares have gained 16.7%.