UnitedHealth Group (NYSE:UNH) stock is trading higher after the insurance mammoth cited a return to sustained growth in its third-quarter 2025 earnings on Tuesday and raised its 2025 guidance.
The company reported adjusted earnings of $2.92, down from $7.15 a year ago, beating the consensus of $2.79.
Revenues increased 12% year over year to $113.161 billion, slightly edging higher than the consensus of $113.064 billion.
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The third quarter medical care ratio of 89.9% was in line with expectations outlined in the second quarter of 2025.
The year-over-year increase of 470 basis points was primarily driven by elevated cost trends, the ongoing effects of the Biden-era Medicare funding reductions, and changes to the Part D program from the Inflation Reduction Act.
The third quarter 2025 operating cost ratio of 13.5% compared to 13.2% in the year-ago quarter.
Segment Performance
UnitedHealthcare revenues grew 16% year-over-year to $87.1 billion, driven by Medicare & Retirement and Community & State growth.
UnitedHealthcare served 50.1 million consumers domestically, up 795,000 year-over-year.
Optum revenues grew 8% year-over-year to $69.2 billion, driven by growth in Optum Rx.
“We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond, and our results this quarter reflect solid execution toward that goal,” said Stephen Hemsley, chief executive officer of UnitedHealth Group.
Outlook and Strategic Developments
UnitedHealth raised its 2025 earnings outlook to reflect net earnings of at least $14.90 per share and adjusted net earnings of at least $16.25 per share, compared to at least $16 expected earlier and the consensus of $16.20.
Separately, according to a recent media report, the U.K. division of UnitedHealth’s Optum, which operates the electronic patient record system EMIS used by most British general practitioners (GPs), is attracting private equity interest just two years after its acquisition.
Price Action: UNH stock was trading higher by 4.30% to $381.70 premarket at last check Tuesday.
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