Health insurance company UnitedHealth (NYSE: UNH) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 2% year on year to $111.7 billion. Its non-GAAP profit of $7.23 per share was 9.4% above analysts’ consensus estimates.
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UnitedHealth (UNH) Q1 CY2026 Highlights:
- Revenue: $111.7 billion vs analyst estimates of $109.8 billion (2% year-on-year growth, 1.7% beat)
- Adjusted EPS: $7.23 vs analyst estimates of $6.61 (9.4% beat)
- Adjusted EBITDA: $10.37 billion vs analyst estimates of $9.51 billion (9.3% margin, 9% beat)
- Management raised its full-year Adjusted EPS guidance to $18.25 at the midpoint, a 2.8% increase
- Operating Margin: 8%, in line with the same quarter last year
- Free Cash Flow Margin: 7.3%, up from 4.2% in the same quarter last year
- Market Capitalization: $293.6 billion
“We are continuing to help simplify and modernize health care for the people and care providers we serve, bringing greater value, affordability, transparency and connectivity,” said Stephen Hemsley, chief executive officer of UnitedHealth Group.
Company Overview
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, UnitedHealth’s sales grew at a decent 11.3% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. UnitedHealth’s annualized revenue growth of 8.9% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, UnitedHealth reported modest year-on-year revenue growth of 2% but beat Wall Street’s estimates by 1.7%.
Looking ahead, sell-side analysts expect revenue to decline by 1.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.
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Adjusted Operating Margin
UnitedHealth was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 7.7% was weak for a healthcare business.
Looking at the trend in its profitability, UnitedHealth’s adjusted operating margin decreased by 3.2 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 3.8 percentage points. We still like UnitedHealth but would like to see some improvement in the future.
In Q1, UnitedHealth generated an adjusted operating margin profit margin of 8.4%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Sadly for UnitedHealth, its EPS declined by 2.4% annually over the last five years while its revenue grew by 11.3%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
Diving into the nuances of UnitedHealth’s earnings can give us a better understanding of its performance. As we mentioned earlier, UnitedHealth’s adjusted operating margin was flat this quarter but declined by 3.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q1, UnitedHealth reported adjusted EPS of $7.23, up from $7.20 in the same quarter last year. This print beat analysts’ estimates by 9.5%. Over the next 12 months, Wall Street expects UnitedHealth’s full-year EPS of $16.34 to grow 12.7%.
Key Takeaways from UnitedHealth’s Q1 Results
It was encouraging to see UnitedHealth beat analysts’ full-year EPS guidance expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 6.3% to $344.10 immediately following the results.
UnitedHealth put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
