10-QPeriod: Q1 FY2026

UNITEDHEALTH GROUP INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:UNH

Summary

UnitedHealth Group Inc. (UNH) reported its first quarter 2026 results, demonstrating steady revenue growth and robust earnings per share, though facing some membership contractions in key areas. Total revenues increased by 2% year-over-year to $111.7 billion, driven by price increases at UnitedHealthcare and growth at Optum Rx, offsetting declines in Medicare Advantage and Medicaid enrollment. Earnings from operations remained strong at $9.0 billion, with diluted earnings per share reaching $6.90, reflecting operational management and favorable reserve development despite increased operating costs. Significant strategic actions were undertaken, including portfolio divestitures and restructuring efforts, which resulted in net gains and impacts across segments like Optum Insight and Optum Health. While the company experienced a decline in the number of people served by UnitedHealthcare, particularly in Medicare Advantage and Medicaid, due to benefit design, pricing actions, and reduced eligibility, it also initiated forward share repurchase contracts and paid substantial dividends, indicating continued confidence and commitment to shareholder returns. The company is also actively pursuing pending acquisitions expected to close in the latter half of 2026.

Financial Highlights

54 data points
Beta

Revenue

$111.72B

88.5% Gross Margin

Net Income

$6.28B

5.6% Net Margin

EPS (Diluted)

$6.90

Total Assets

$312.64B

Cash & Equivalents

$28.00B

Free Cash Flow

$8.15B

Financial Statements
Beta
Revenue$111.72B
Cost of Revenue$12.82B
Gross Profit$98.90B
SG&A Expenses$15.39B
Operating Expenses$102.73B
Operating Income$8.99B
Interest Expense$955.00M
Net Income$6.28B
EPS (Basic)$6.92
EPS (Diluted)$6.90
Shares Outstanding (Basic)908.00M
Shares Outstanding (Diluted)910.00M

Key Highlights

  • 1Total revenues grew 2% to $111.7 billion for the three months ended March 31, 2026, compared to the prior year.
  • 2Diluted earnings per share (EPS) increased to $6.90 from $6.85 in the prior year period.
  • 3UnitedHealthcare served 1.1 million fewer people, primarily due to benefit design and pricing actions, and reduced Medicaid eligibility.
  • 4Optum Health revenues saw a 3% decrease, largely due to fewer patients served under value-based arrangements.
  • 5The company initiated forward share repurchase contracts totaling $500 million as of March 31, 2026.
  • 6Cash flows from operating activities were robust, totaling $8.9 billion for the quarter.
  • 7The company has pending acquisitions totaling approximately $3.0 billion expected to close in the second half of 2026.

Frequently Asked Questions

Revenue growth was primarily driven by pricing trends at UnitedHealthcare and growth at Optum Rx. This was partially offset by a decrease in the number of people served through Medicare Advantage, commercial risk-based offerings, and Medicaid, as well as a reduction in patients served under value-based arrangements at Optum Health.

UnitedHealthcare served 1.1 million fewer people due to a combination of factors including benefit design and pricing actions, reduced Medicaid eligibility, and competitive pressures in the commercial risk market. Specifically, Medicare Advantage enrollment decreased due to funding pressures and risk adjustment model revisions.

Operating costs increased by 13% primarily due to investments in people, processes, and technology to enhance consumer and care provider experiences and drive efficiencies. Restructuring and other actions also impacted operating costs. The company is also managing medical costs through affordability initiatives, increased auditing, and clinical policy enforcement, alongside favorable reserve development.

UnitedHealth Group has entered into agreements for pending acquisitions totaling approximately $3.0 billion, with most expected to close in the second half of 2026. The company also continues to return capital to shareholders through dividends, with a quarterly cash dividend reflecting an annual rate of $8.84, and through share repurchases, including recently initiated forward contracts.