UnitedHealth Raises Guidance Amid Member Loss, DOJ Probe

UnitedHealth beat third-quarter expectations with adjusted EPS of $2.92 and revenue of about $113.1–113.2 billion, up roughly 12% year-over-year, while GAAP net income fell to about $2.35 billion ($2.59 a share) from $6.05 billion a year earlier. The company raised full-year adjusted EPS guidance to at least $16.25 (from $16.00) and at least $14.90 GAAP, modestly topping analyst forecasts. Management said healthcare utilization is tracking closer to expectations and the medical-loss ratio improved to about 89.9%, even as elevated medical costs and reduced Medicare funding pressured profits. UnitedHealth described 2025 as a transition year — resetting prices and trimming unprofitable lines, including cuts to individual enrollment and roughly a 1 million-member decline in Medicare Advantage — while Optum showed mixed revenue trends. The results follow a turbulent period that included Stephen Hemsley's abrupt return as CEO, a DOJ probe into Medicare billing practices, and a roughly 27–28% year-to-date stock decline, though management says it is positioning the company for durable growth in 2026 and accelerating growth in 2027.