UnitedHealth Group Incorporated · Q2 2026 call

Our second quarter results and updated full year 2026 outlook demonstrate continuing progress toward delivering more consistent and dependable performance. They are a sign of stronger broad-based performance disciplines taking hold in each of our businesses and a restless desire to drive mission-aligned change across the enterprise

Our commercial benefits business, consistent with the broader and more diverse commercial market it serves, continues to experience higher than expected cost trends

We expect the 2026 Medicare medical cost trend to come in below our initial estimate of around 10%.

We now expect full-year Medicare Advantage enrollment to decline by approximately 1.1 million and Medicare margins to finish 2026 above 3%.

Within our commercial offerings, as I noted, we are not yet seeing evidence of cost trend moderation. In fact, it is the opposite, with medical cost trends modestly above 11% level we previously saw.

in the quarter, we committed to eliminating, by the end of this year, 30% of prior authorization volume and nearly two-thirds of prior authorization requirements for pediatric care.

enhanced support for patients during key transitions of care has resulted in approximately 10% reduction in hospitalizations since implementation late last year in the Western and Southern regions of Optum Health

we expect to end 2026 with more than 95% of clients on 100% pass-through

UnitedHealth Group reported adjusted earnings per share of $6.38, compared to $4.08 in the prior year. Total revenues were $112 billion, largely consistent with the prior year, while operating earnings of $8 billion grew 55% year-over-year.

Our reported medical care ratio of 86.7% includes $860 million of net favorable prior period medical development, the majority of which is in-year development. This compares to 89.4% in 2Q 2025.

Through mid-July, we have deployed $4 billion for repurchases of 11.4 million shares. We now expect to complete total share repurchases of at least $5 billion in 2026, compared to initial guidance of $2.5 billion.

Our debt to capital ratio was 41.2% at the end of the quarter, compared to 44.1% one year ago, and 170 basis point sequential improvement from the first quarter of this year. We remain on track to reduce our debt to capital ratio to approximately 40% by the end of 2026.

We're providing new adjusted earnings per share guidance range of $19.50 to $20, with slightly more earnings in 3Q relative to 4Q. We are increasing the full-year operating earnings outlook for UnitedHealthcare to at least $12 billion and for Optum Health to at least $2.2 billion.

This is not just about returning to a growth rate. This is also about making this company perform in levels and in areas and spaces consistent with its mission, and to really provide a positive impact to all those we serve and across the health system.

I don't ever believe I ever didn't believe in the 13%-16% long-term growth rate. We will have moments along the way when we don't perform to our potential. […] We continue to be in that mindset of that 13%-16%. Definitely believe we can perform in that range. Really never believed otherwise.

We are really thinking of it in terms of reimagining our entire enterprise, virtually everything that we do, we see it basically as the operating infrastructure of the future.

I can assure you, we will stay restless and urgent as we go forward.