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(Sharecast News) - Shares in UnitedHealth Group advanced in New York on Thursday after the healthcare insurance and health services group lifted its full-year guidance following a strong second quarter.
Revenue edged up to $112.0bn, up from $111.6bn a year earlier and ahead of the $110.8bn consensus forecast.
Earnings from operations surged to $8.0bn from $5.2bn, while diluted earnings per share jumped to $6.04 from $3.74 previously, smashing the $4.63 market estimate.
The medical care ratio, the proportion of an insurer's premium revenue spent on members' medical claims and related healthcare costs, improved to 86.7% from 89.4%, helped by benefit design, pricing discipline, member mix and medical-cost management, including $860m of favourable prior-period reserve development.
Meanwhile, operating cash flow reached $11.1bn, equivalent to 1.9 times net income, while debt-to-capital stood at 41.2%.
Chief executive Stephen Hemsley said the results reflected "continuing progress" in simplifying operations, improving affordability and applying modern technology to improve healthcare.
Looking ahead, UnitedHealth now expects 2026 adjusted EPS of $19.50 to $20.00, up from a previous range of $17.75-18.25 previously. It also forecast operating cash flow of about $24bn and share repurchases of at least $5bn.
The stock was up 3.5% at $433.13 by 1636 BST.
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