UnitedHealth Group reported second-quarter results showing its medical care ratio fell to 86.7% from 89.4% a year ago, helping operating earnings rise 55% and prompting the company to raise its 2026 adjusted EPS guidance. The quarter included $860 million of favorable prior-period medical development, while commercial medical costs are increasing at a rate exceeding 11% due to higher provider billing and coding intensity and specialty drug costs. Elevance Health's second-quarter benefit expense ratio was 89.7%, up 80 basis points year over year, but the company raised its 2026 adjusted EPS guidance to at least $27. CVS Health's Aetna business benefited from lower medical costs in the second quarter, leading to an earnings beat and raised 2026 adjusted EPS guidance of $7.90 to $8.10. UnitedHealth shares have risen 47.9% in the past 12 months, and the stock trades at a forward price-to-earnings ratio of 18.83X compared with the industry average of 16.48X.
CVS Health CorpAetna's lower medical costs led to an earnings beat and raised 2026 EPS guidance.
Elevance Health IncRaised 2026 adjusted EPS guidance despite higher benefit expense ratio.
UnitedHealth Group IncorporatedLower medical care ratio drove 55% operating earnings rise and raised 2026 EPS guidance.
