| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 60 | 24.4x | 17.8x | Around median | |
Growth | 24 | 6.5% | 7.1% | Bottom tier | |
Quality | 90 | 11.3% | 4.5% | Top tier | |
Safety | 65 | 1.7x | 2.6x | Around median | |
Capital Return | 69 | 2.30% | 2.12% | Top tier | |
Momentum | 76 | 17.0% | 2.9% | Top tier | |
Sentiment | 43 | 19 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
UnitedHealth Group operates through an integrated system that combines the regulated health benefits businesses of UnitedHealthcare with the Optum group, which includes Optum Health, Optum Rx, and Optum Insight. UnitedHealthcare offers Medicare, Medicaid, and commercial benefits plans, while Optum Health serves approximately 20 million people through primary and specialty care, ambulatory surgery, and home-based care; Optum Rx provides pharmacy benefit management services; and Optum Insight sells technology and services that include AI-powered coding and real-time connectivity between payers and care providers.
In Q2 fiscal year 2026, UnitedHealth Group's revenue was approximately $112 billion and remained nearly flat year over year, while operating profit rose 55% to $8 billion, representing an operating margin of approximately 7.1%. Adjusted earnings per share reached $6.38 versus $4.08 in the comparable period, and the medical care ratio declined to 86.7% from 89.4%, with results benefiting from net favorable prior-period medical development of $860 million. Operating cash flow was approximately $11 billion, or 1.9 times net income.
The operational improvement was driven by better-than-expected performance in Medicare Advantage and improvement at Optum Health, while commercial benefits and Medicaid remained under pressure from medical costs. The company raised its fiscal year 2026 operating profit outlook to at least $12 billion for UnitedHealthcare and $2.2 billion for Optum Health, while Optum Rx and Optum Insight are each expected to generate approximately 55% of their annual earnings during the second half of fiscal year 2026. This composition confirms that the recovery is relatively broad, but uneven across businesses and periods.
The average analyst price target is $473.89, with a “Buy” consensus and a wide range between $373 and $529; the average exceeds the high recorded within the 52-week range of $461.62 by approximately $12.27. However, the $156 spread in targets, and the fact that the low end falls within the 52-week range of $255.97–$461.62, reflect a meaningful divergence in assessments of the impact of margin recovery versus the risks from medical costs, lawsuits, and the tax investigation.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue was approximately $112 billion, and operating profit rose 55% year over year to $8 billion. The company reported adjusted earnings per share of $6.38 versus $4.08, and the medical care ratio declined to 86.7% from 89.4%. The improvement came primarily from better-than-expected Medicare Advantage performance and improvement at Optum Health, while results also benefited from $860 million of favorable prior-period medical development.
The company set its adjusted earnings per share range at $19.50–$20.00 for fiscal year 2026. It expects operating profit of at least $12 billion at UnitedHealthcare and $2.2 billion at Optum Health, with a medical care ratio of 88.1%, plus or minus 25 basis points. It also targets reducing the debt-to-capital ratio to approximately 40% and completing share repurchases of at least $5 billion by the end of 2026.
Medicare costs improved relative to the company's initial estimate of an approximately 10% trend in fiscal year 2026, but management emphasized that this does not represent an inflection point and that costs remain historically elevated. By contrast, the cost trend in commercial benefits exceeded 11% due to dispute resolution under the No Surprises Act, coding intensity, and the rising cost of specialty drugs and GLP-1. In Medicaid, estimated annual rate increases of approximately 6%–7% continue to lag the medical cost trend.
Automated analysis for informational purposes only — not investment advice.
Optum Health made AI-powered ambient documentation tools available to approximately 70% of employed care providers, with a target of exceeding 90% by the end of 2026. Digital prior authorization achieved a 96% initial approval rate, while the commercial product processed approximately half a million requests and saved external organizations 69 thousand administrative hours. Optum Insight also offers the Value Connect platform, whose initial results included a 17% reduction in pharmacy costs for customers.
A shareholder lawsuit announced on August 13, 2026, includes allegations of Medicare fraud, the use of algorithms to deny care, and insider sales worth $237 million. On August 19, 2026, an Internal Revenue Service investigation into financial transfers through foreign subsidiaries was announced, with the agency seeking to increase taxable income for four consecutive years. The company also faces a difficult regulatory environment in the Stars program, as management said the industry's 2026 scores were at their lowest level in approximately a decade, without providing a final forecast for UnitedHealth's results.
