UnitedHealth Group Inc. (NYSE:UNH) shares are up on Wednesday as the company raised its profit outlook following a report indicating easing medical costs.
UnitedHealth Raises Outlook After Earnings Beat
UnitedHealth reported first-quarter adjusted earnings of $7.23, surpassing the consensus estimate of $6.58, while revenues increased 2% year-over-year to $111.721 billion, also exceeding expectations.
The largest private health insurer also revised its fiscal 2026 adjusted earnings per share guidance from over $17.75 to more than $18.25, reflecting positive momentum in its operations.
Medicare Balance Program Remains A Key Watchpoint
In an investor call on Tuesday, UnitedHealth highlighted “challenges” around the Medicare pilot program, dubbed the Balance program, to cover obesity drugs.
“There are some notable challenges and outstanding questions with the currently planned structure,” said UnitedHealth’s chief of government programs, Bobby Hunter, on Tuesday.
Bobby added, “So we’re still working through that process internally, and we look forward to continuing the dialogue with CMS.”
In December 2025, the Centers for Medicare & Medicaid Services (CMS)