UnitedHealth Beats on Q2 Earnings and Raises Outlook Despite Membership Pressure

UnitedHealth Group, the largest US health insurer, reported second-quarter revenue of about $112 billion, up roughly 15% from a year earlier, and adjusted earnings of $6.38 per share, comfortably ahead of Wall Street's expectation of $4.90. The company raised its full-year adjusted earnings outlook to a range of $19.50 to $20 per share, up from a prior forecast of more than $18.25, as it works to stabilise margins by shrinking membership, exiting unprofitable contracts and investing heavily in artificial intelligence. Its medical care ratio, a measure of medical costs relative to premiums collected, improved to 86.7% from 89.4% a year earlier, signalling better cost control. Still, the insurer flagged pressure on enrolment: its UnitedHealthcare unit served 48.5 million people, down about 525,000 from the prior quarter, and management projected the loss of roughly 500,000 Affordable Care Act exchange members and 1.1 million Medicare Advantage members in 2026, largely due to affordability challenges as healthcare costs rise. The results reflect a broader industry squeeze from higher utilisation and costly specialty drugs.