Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $113 billion | Not stated |
| Adjusted EPS | $4.69 | up from $2.92 a year ago |
| Consolidated medical care ratio | 88.4% | compared to 89.9% last year |
| Stock repurchases (YTD) | $5 billion | Not stated |
| Dividends paid (YTD) | $6.2 billion | Not stated |
Guidance and outlook
- Full year 2026 adjusted EPS guidance of at least $20.50.
- Long-term target growth range of 13% to 16%.
How management sounded
Positive (+6 on our -10 to +10 scale). Management raised full-year guidance and expressed clear confidence in their 2027 growth outlook, citing operational improvements and AI integration. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Medicaid Margins
Asked: Analysts asked about the Medicaid run rate and if the business is back to breakeven.
Answer: Management stated performance is moderately better than the forecasted range and they aspire to return to rated margins by the end of 2028.
Medicare Advantage Growth
Asked: Analysts inquired about the approach to growth in 2027 and competitiveness.
Answer: Management noted they are focused on durable product offerings like dual special needs plans and chronic special needs plans, with 94% of Medicare-eligible individuals having access to their plans.
Commercial Medical Trends
Asked: Analysts asked about the stabilization of commercial medical trends and pricing for 2027.
Answer: Management indicated trends are stabilizing but remain high, and they have priced for 2027 with the expectation that these elevated trends will persist.
Optum Health Margins
Asked: Analysts asked about the path to the 6% to 8% margin range for Optum Health.
Answer: Management expressed confidence in the durability of performance improvements and expects to pace towards the 6% to 8% margin range by 2028.
What to watch before the next call
- The company plans to provide a more comprehensive update on the 2027 outlook before the end of the year.
- Monitoring of medical cost trends, particularly in specialty pharmacy and acute health care service intensity.
- Progress on the implementation of prior authorization reforms and their impact on administrative burdens.
