UnitedHealth Group Inc. (NYSE:UNH) shares are climbing Wednesday. Bernstein reiterated their rating and price target following a third-quarter earnings beat.
- UnitedHealth Group shares are trending higher. Why is UNH stock trading higher?
UnitedHealth Tops Third-Quarter Estimates
Bernstein analyst Lance Wilkes reiterated an Outperform rating on UnitedHealth and maintained the price target at $512.
Wilkes called UnitedHealth’s third-quarter 2026 results, released Wednesday morning, a solid beat. Adjusted profit of $4.69 per share compares with the $4.12 consensus, a 13.7% gap. Revenue of $112.7 billion beat the $111 billion consensus by 1.5%.
The medical loss ratio (MLR) came to 88.4%. Consensus stood at 89.9%, which puts the result 145 basis points below it.
UnitedHealthcare and Optum Health Drive Beat
Two units powered the quarter, Wilkes said: UnitedHealthcare and Optum Health. Their outperformance produced both the beat and the higher guidance. Wilkes said Medicare Advantage (MA) pricing discipline, contract exits and limited use of medical services probably fueled both units. The MA turnaround keeps producing results, Wilkes added.
UnitedHealth’s other Optum businesses exceeded expectations by a small margin. Wilkes also pointed to the company’s mix of businesses and gains across its divisions.
Wilkes read the guidance increase as a sign that Medicaid is steadying. It also suggests employer managed care organization (MCO) results face no further strain.
UnitedHealth Investors Watch 2027 Growth Signals
UnitedHealth shares have fallen over recent months, so Wilkes expects investors to welcome the report. Wilkes said traders will focus on early signals for 2027, whether for earnings per share or for earnings at the operating units.
Wilkes also sees the quarter as a sign of lasting strength in Medicare Advantage across the sector. That signal covers other MA companies and value-based care (VBC) companies.
Barclays and Baird Adjust UnitedHealth Targets
Two other firms updated their views Wednesday morning, according to Benzinga Pro:
- Barclays analyst Andrew Mok stuck with Overweight and pared the price target to $440.
- Baird analyst Michael Ha stayed at Neutral and lowered the price target to $427.
Meanwhile, health care stocks rallied alongside UnitedHealth. The Health Care Select Sector SPDR Fund (XLV) gained 1.46%.
UNH Shares Are Rising
UNH Price Action: UnitedHealth shares were up 3.45% at $390.81 at the time of publication on Wednesday, according to Benzinga Pro.
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