UnitedHealth Group posted third-quarter earnings that beat estimates and raised its full-year profit outlook, CNBC reported. The nation's largest private insurer now expects 2026 adjusted earnings of at least $20.50 per share, up from a previous range of $19.50 to $20.

The company earned $4.69 per share on an adjusted basis, above the $4.14 analysts expected, according to CNBC, citing LSEG. Revenue was $112.69 billion, above the $111.40 billion expected but down from $113.16 billion a year earlier. Net income was $4.11 billion, up from $2.35 billion a year ago.

A key measure of medical costs, the medical cost ratio, came in at 88.4%, CNBC reported. Analysts had expected 89.9%. A lower ratio usually means the company paid out less in benefits compared with the premiums it collected.

Still, Chief Financial Officer Wayne DeVeydt told CNBC that medical costs "continue to be elevated versus historical norms." He said costs for hospital stays and costly specialty drugs remain high. He also said a federal process for settling disputes over out-of-network bills is adding at least 1 percentage point to total medical costs.

UnitedHealth has been trying to steady its business by shrinking membership, leaving unprofitable contracts and investing in AI and value-based care, CNBC reported.

Investors did not hold on to the early excitement. The stock rallied as much as 5.6% shortly after trading began but erased the gain and finished with a dip of 0.2%, AP reported. AP said the broader market was little changed on Tuesday as many earnings reports canceled each other out.

What we know: UnitedHealth beat forecasts, cut its medical cost ratio and raised its 2026 profit outlook.
What we don't: Whether medical costs will stay high into next year, and how investors will judge the turnaround.