UnitedHealth Group reported second quarter net income of $5.48 billion as medical costs dropped, triggering an improved financial outlook for the rest of the year, the company said July 16, 2026. In this photo is a general view outside the United Healthcare corporate headquarters on December 4, 2024 in Minnetonka, Minnesota. (Photo by Stephen Maturen/Getty Images)
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On Thursday, UnitedHealth Group announced a second quarter net income of $5.48 billion, benefiting from reduced medical costs, and setting a positive financial trajectory for the remainder of the year.
The parent organization of UnitedHealthcare, the largest health insurer in the U.S., has revised its full-year 2026 adjusted net earnings forecast to a range of $19.50 to $20 per share. This is an increase from the previous forecast of over $17.75 per share.
According to the company, “The second quarter 2026 medical care ratio was 86.7% compared to 89.4% in the second quarter 2025.” This ratio, reflecting the percentage of premium revenue spent on medical costs, decreased year-over-year due to strategic benefit design, pricing discipline, member mix, and medical cost management efforts.
For the quarter ending June 30, UnitedHealth reported a net income of $5.48 billion, or $6.04 per share, up from $3.4 billion, or $3.74 per share, in the same period the previous year. Total revenue saw a slight increase to $112.03 billion from $111.6 billion in the prior year, aided by growth in Optum health services and UnitedHealthcare’s employer and individual business plans.
Several health insurers, including UnitedHealth, have experienced medical loss ratios rising to 90% and above as a surge in patient claims occurs. Last year, UnitedHealth’s fourth-quarter medical care ratio was 91.5%. The industry aims for these ratios to be below 90%, ideally in the mid-80s, which was the case less than two years ago.
UnitedHealth’s medical loss ratio has remained under 90% for two consecutive quarters, surpassing Elevance Health’s benefit expense ratio of 89.7% in its recent second-quarter report, which noted an 80 basis point increase year-on-year.
The improved medical cost landscape for UnitedHealthcare is partly due to strategic moves by new management to exit unprofitable markets, ceasing the sale of individual coverage under the Affordable Care Act and withdrawing from numerous counties where it no longer offers privatized Medicare Advantage plans. Insurers like UnitedHealthcare, Aetna from CVS Health, Humana, and Elevance Health have faced challenges managing the medical expenses of the growing number of older adults in Medicare Advantage plans.
These market exits resulted in a decrease in health plan membership, with UnitedHealthcare serving approximately 48.5 million customers in the second quarter of this year, down from 49.8 million at the end of 2025. Membership also declined by 525,000 from the end of the first quarter, which reported around 49 million members.
