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Earnings Score 82 Bullish

UnitedHealth Group Rebounds with Q1 Earnings Beat and Raised 2026 Guidance

Apr 21, 2026 16:23 UTC
UNH
Medium term

UnitedHealth Group has signaled a recovery from a challenging 2025, posting first-quarter results that exceeded analyst expectations on both top and bottom lines. The healthcare giant subsequently raised its full-year profit outlook, sparking a sharp rally in its share price.

  • Q1 revenue reached $111.72 billion, exceeding analyst expectations
  • Adjusted EPS of $7.23 outperformed the $6.57 consensus
  • Full-year adjusted earnings guidance increased to $18.25 per share
  • Company is exiting non-U.S. businesses to refocus on domestic healthcare
  • Shares surged over 9% following the announcement
  • Jefferies raised price target to $373

UnitedHealth Group (NYSE: UNH) reported first-quarter revenue of $111.72 billion, a 2% year-over-year increase that surpassed the consensus estimate of $109.57 billion. Adjusted earnings per share came in at $7.23, significantly beating the $6.57 expected by analysts. The market responded aggressively to the news, with shares jumping more than 9% at the open. This strong performance marks a critical turnaround for the company following a volatile 2025, during which the stock declined 34% and the firm experienced its first earnings miss since 2008. Management attributed previous struggles to miscalculated premiums for physician and hospital services, which have since been addressed through premium hikes and operational restructuring. CEO Stephen Hemsley highlighted a strategic pivot toward U.S. healthcare, including the exit of non-U.S. operations and a refresh of nearly half of the top 100 leadership roles. The company is also leveraging accelerated AI and technology investments to improve data processing, pharmacy practices, and reporting transparency. Based on the Q1 momentum, the company raised its full-year earnings guidance to $17.35 per share from $17.10, and adjusted earnings guidance to $18.25 from $17.75. Analysts have reacted positively to the recovery; Jefferies maintained its 'buy' rating and raised its price target for UNH from $340 to $373.

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