UnitedHealth Group Incorporated
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ITEM 1. BUSINESS
OUR BUSINESSES
Overview
The terms “we,” “our,” “us,” “its,” “UnitedHealth Group,” or the “Company” used in this report refer to UnitedHealth Group Incorporated and its subsidiaries.
UnitedHealth Group Incorporated is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone. Our two distinct, yet complementary businesses — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the individuals and organizations we are privileged to serve.
The ability to analyze complex data and apply deep health care expertise and insights allows us to serve patients, consumers, care providers, businesses, communities and governments with more innovative products and complete, end-to-end offerings for many of the biggest challenges facing health care today.
Optum seeks to create a higher-performing, value-oriented and more connected approach to health care. Bringing together clinical expertise, technology and data to make care simpler, more effective and more affordable, we seek to advance whole-person health, creating a seamless consumer experience and supporting clinicians with insights to deliver personalized, evidence-based care. Optum serves the broad health care marketplace, including patients and consumers, payers, care providers, employers, governments and life sciences companies, through its Optum Health, Optum Insight and Optum Rx businesses. These businesses improve overall health system performance by optimizing health care quality and delivery, reducing costs and improving patient, consumer and provider experience, leveraging distinctive capabilities in data and analytics, pharmacy care services, health care operations, population health and health financial services.
UnitedHealthcare offers a full range of health benefits, designed to simplify the health care experience and make it more affordable for consumers to access high-quality care. UnitedHealthcare Employer & Individual serves consumers and employers, ranging from individuals and sole proprietorships to large, multi-site and national employers and public sector employers. UnitedHealthcare Medicare & Retirement delivers health and well-being benefits to seniors and other Medicare eligible consumers. UnitedHealthcare Community & State serves consumers who are economically disadvantaged, the medically underserved and those without the benefit of employer sponsored health benefits coverage.
We have four reportable segments:
•Optum Health;
•Optum Insight;
•Optum Rx; and
•UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State.
2026 Business Realignment
On January 1, 2026, we realigned certain of our businesses to respond to changes in the markets we serve and the opportunities that are emerging as the health system evolves. Optum Financial, including Optum Bank, which was historically included in Optum Health, will now be included in Optum Insight. Our reportable segments will remain unchanged, with prior period segment financial information being recast to conform to the 2026 presentation, beginning with our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 filed with the Securities and Exchange Commission (SEC).
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Optum
Optum is an information and technology-enabled health services business serving the broad health care marketplace, including:
•Those who need care: patients who need the right care, information, resources, products and engagement to improve their health, achieve their health goals and receive an improved patient experience that is personalized, comprehensive and delivered in all care settings, including in-home and virtually.
•Those who provide care: physicians, hospitals, pharmacies and others seeking to improve the health system and reduce the administrative burden, allowing for providers to focus time on patients leading to the best possible patient care and experiences while achieving better health outcomes at lower costs. Improved health outcomes are achieved by utilizing our clinical expertise, data and analytics to better understand, treat and prevent consumers’ health conditions and ensure they receive the best evidence-based care.
•Those who pay for care: consumers; employers; health plans; and state, federal and municipal agencies devoted to ensuring the people they sponsor receive high-quality care, administered and delivered efficiently and effectively, all while driving health equity so that every individual, family and community has access to the care they need.
•Those who innovate for care: global life sciences organizations dedicated to developing more effective approaches to care, enabling technologies and medicines to improve care delivery and health outcomes.
Optum operates three business segments which combine distinctive capabilities in value-based care, population health, health care operations, data and analytics and pharmacy care services:
•Optum Health delivers patient-centered care, care management, wellness and consumer engagement, and health financial services;
•Optum Insight offers data, analytics, research, consulting, technology and managed services solutions; and
•Optum Rx provides diversified pharmacy care services.
Optum Health
Optum Health provides comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being of 95 million consumers and serves more than 100 health payer partners. We engage people in the most appropriate care settings, including clinical sites, in-home and virtual. Optum Health delivers primary, specialty and surgical care; helps patients and providers navigate and address complex, chronic and behavioral health needs; offers post-acute care planning services; and serves consumers and care providers through advanced, on-demand digital health technologies, such as telehealth and remote patient monitoring, and innovative health care financial services. Optum Health works directly with patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities to provide high quality, accessible and equitable care with improved health outcomes and reduced total cost of care. Optum Health enables care providers to transition from traditional fee-for-service payment models to performance-based delivery and payment models designed to improve patient health outcomes and experience through value-based care.
Optum Health offerings include fully accountable value-based arrangements, where Optum Health assumes responsibility for health care costs in exchange for a monthly premium. Offerings also include administrative fee arrangements, where Optum Health manages or administers products and services in exchange for a monthly fee, and fee-for-service arrangements, where Optum Health delivers health-related products and medical services for patients at a contracted fee.
Optum Financial, including Optum Bank, serves consumers through nearly 26 million consumer accounts with more than $27 billion in assets under management as of December 31, 2025. Organizations across the health system rely on Optum Financial to manage and improve payment flows through its highly automated, scalable, end-to-end digital payment and financing systems and integrated card solutions. For financial services offerings, Optum Financial charges fees and earns investment and interest income on managed funds and loans.
Optum Health sells its products primarily through its direct sales force, strategic collaborations and external producers in three key areas: employers, including large, mid-sized and small employers; payers including health plans, third-party administrators (TPAs), underwriter/stop-loss carriers and individual product intermediaries; and public entities, including the U.S. Departments of Health and Human Services (HHS), Veterans Affairs, Defense, and other federal, state and local health care agencies.
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Optum Insight
Optum Insight connects the health care system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the health care system. Hospital systems, physicians, health plans, public entities, life sciences companies and other organizations comprising the health care industry depend on Optum Insight to help them improve performance and reduce costs through administrative efficiency and payment simplification, advance care quality through evidence-based standards built directly into clinical workflows, meet compliance mandates and modernize their core operating systems to meet the changing needs of the health system.
Health Systems. Serves hospitals, physicians and other care providers to improve operating performance, better coordinate care and reduce administrative costs through technology and services to improve population health management, patient engagement, revenue cycle management and strategic growth plans.
Health Plans. Serves health plans by improving financial performance and enhancing outcomes through proactive analytics, a comprehensive payment integrity portfolio and technology-enabled and staff-supported risk and quality services. Optum Insight helps health plans navigate a dynamic environment defined by shifts in employer vs. public-sector coverage, the demand for affordable benefit plans and the need to leverage new technology to reduce complexity.
State Governments. Provides advanced technology and analytics services to modernize the administration of critical safety net programs, such as Medicaid, while improving cost predictability.
Life Sciences Companies. Combines data and analytics expertise with comprehensive technologies and health care knowledge to help life sciences companies, including those in pharmaceuticals and medical technology, adopt a more comprehensive approach to advancing therapeutic discoveries and improving clinical outcomes.
Many of Optum Insight’s software and information products and professional services are delivered over extended periods, often several years. Optum Insight maintains an order backlog to track unearned revenues under these long-term arrangements. The backlog consists of estimated revenue from signed contracts, other legally binding agreements and anticipated contract renewals based on historical experience with Optum Insight’s customers. Optum Insight’s aggregate backlog as of December 31, 2025 was approximately $31.1 billion, of which $18.3 billion is expected to be realized within the next 12 months. The aggregate backlog includes $12.9 billion related to affiliated agreements. Optum Insight’s aggregate backlog as of December 31, 2024, was $32.8 billion, including $12.5 billion related to affiliated agreements.
Optum Insight’s products and services are sold primarily through a direct sales force. Optum Insight’s products are also supported and distributed through an array of alliances and business partnerships with other technology vendors, who integrate and interface Optum Insight’s products with their applications.
Optum Rx
Optum Rx provides a full spectrum of pharmacy care services through its network of approximately 64,000 retail pharmacies, through home delivery, specialty and community health pharmacies, the provision of in-home and community-based infusion services and through rare disease and gene therapy support services. It also offers direct-to-consumer solutions.
Optum Rx manages a broad range of prescription drug spend, including widely available retail drugs as well as limited and ultra-limited distribution drugs in oncology, human immunodeficiency virus, pain management and ophthalmology. Optum Rx serves the growing pharmacy needs of people with behavioral health and substance use disorders. In 2025, Optum Rx managed $188 billion in pharmaceutical spending, including nearly $87 billion in specialty pharmaceutical spending.
Optum Rx serves health benefits providers, large national employer plans, unions and trusts, purchasing coalitions and public-sector entities. Optum Rx sells its services through direct sales, health insurance brokers and other health care consultants.
Optum Rx offers multiple clinical programs, digital tools and services to help clients manage overall pharmacy and health care costs in a clinically appropriate manner which are designed to deliver improved consumer experiences, better health outcomes and a lower total cost of care. Optum Rx provides various utilization management, medication management, quality assurance, adherence and counseling programs to complement each client’s plan design and clinical strategies. Optum Rx is accelerating the integration of medical, pharmacy and behavioral care and treating the whole patient by embedding our pharmacists as key members of the patient care team.
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UnitedHealthcare
Through its health benefits offerings, UnitedHealthcare is enabling better health, creating a better health care experience for its customers and helping to control rising health care costs. UnitedHealthcare’s market position is built on:
•strong local-market relationships;
•the breadth of product offerings, based upon extensive expertise in distinct market segments in health care;
•service and advanced technology, including digital consumer engagement;
•competitive medical and operating cost positions;
•effective clinical engagement; and
•innovation for customers and consumers.
UnitedHealthcare arranges for discounted access to care through its extensive networks and uses Optum’s capabilities to help coordinate and provide patient care, improve affordability of medical care, analyze cost trends, manage pharmacy care services, work with care providers more effectively and create a simpler and more satisfying consumer and physician experience.
UnitedHealthcare is subject to extensive government regulation. See further discussion of our regulatory environment below under “Government Regulation” and in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
UnitedHealthcare Employer & Individual
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read together with the accompanying Condensed Consolidated Financial Statements and Notes and with our 2025 10-K, including the Consolidated Financial Statements and Notes included in Part II, Item 8, “Financial Statements and Supplementary Data” in that report. Unless the context indicates otherwise, references to the terms “UnitedHealth Group,” the “Company,” “we,” “our” or “us” used throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations refer to UnitedHealth Group Incorporated and its consolidated subsidiaries.
Readers are cautioned that the statements, estimates, projections or outlook contained in this Management's Discussion and Analysis of Financial Condition and Results of Operations, including discussions regarding financial prospects, economic conditions, trends and uncertainties contained in this Item 2, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations expressed or implied in the forward-looking statements. A description of some of the risks and uncertainties is set forth in Part I, Item 1A, “Risk Factors” in our 2025 10-K and in the discussion below.
EXECUTIVE OVERVIEW
General
UnitedHealth Group is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone. Our two distinct, yet complementary businesses — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the individuals and organizations we are privileged to serve.
We have four reportable segments:
•Optum Health;
•Optum Insight;
•Optum Rx; and
•UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State.
Further information on our business is presented in Part I, Item 1, “Business” and Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 10-K and additional information on our segments can be found in this Item 2 and in Note 9 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
Net Portfolio Divestitures and Restructuring and Other Actions
Net Portfolio Divestitures
In the fourth quarter of 2025, the Company took various actions as a result of a strategic review of its assets and businesses aimed at advancing and scaling its core operations, including the value-based care business at Optum Health. In the first quarter of 2026, these actions resulted in a net gain of $230 million reflecting gains on the sales of businesses previously held for sale as of December 31, 2025, partially offset by incremental losses on other businesses held for sale. By segment, this included gains of $528 million and $8 million at Optum Insight and Optum Rx, respectively, partially offset by a net loss of $306 million at Optum Health. Gains and losses on portfolio actions were recorded within operating costs on the Condensed Consolidated Statements of Operations.
Restructuring and Other Actions
In the first quarter of 2026, restructuring and other items included a $400 million contribution to the United Health Foundation funded by the cash gain on the disposition of an Optum Insight business. This was partially offset by a $137 million reduction of loss contract reserves established in the fourth quarter of 2025 and $59 million of net valuation gains on equity securities. Restructuring and other actions resulted in an impact of $339 million at Optum Insight, partially offset by $135 million at Optum Health. These items increased operating costs by $415 million, partially offset by an increase to investment and other income of $74 million and decreased medical costs of $137 million on the Condensed Consolidated Statements of Operations.
Business Trends
Our businesses participate primarily in the United States health markets. We expect overall spending on health care to continue to grow in the future, due to inflation, medical technology and pharmaceutical advancement, regulatory requirements, demographic trends in the population and national interest in health and well-being. The rate of market growth may be affected
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by a variety of factors, including macroeconomic conditions and regulatory changes, which could impact our results of operations, including our continued efforts to control health care costs.
Pricing Trends. To price our health care benefits, products and services, we start with our view of expected future costs, including medical care patterns, the mix and health status of people served, inflation and labor market dynamics. We continually evaluate and adjust our approach in each of the local markets we serve, considering relevant factors, such as product positioning, price competitiveness and environmental, competitive, legislative and regulatory considerations, including minimum medical loss ratio thresholds and similar revenue adjustments. We seek to balance growth and profitability across all these dimensions.
The commercial risk market remains highly competitive in the small group, large group and individual segments. We expect broad-based competition to continue as the industry adapts to individual and employer needs. Continued increased medical costs may impact both future pricing and benefit design, including for our individual exchange products, and may result in shifts between product categories for our employer benefits. These changes, along with certain regulatory impacts, have resulted in a reduction in people served in the first quarter and may continue in future periods. Additionally, we have voluntarily pledged to rebate 2026 profits on our individual exchange products to customers as policymakers continue to work to determine how to improve affordability in this marketplace.
Medicare Advantage funding continues to be pressured, as discussed below in “Regulatory Trends and Uncertainties,” and we have observed a continued increase in care patterns and health care unit costs as discussed below in “Medical Cost Trends,” which we have contemplated in our 2026 benefit design approach. Continued funding pressures have resulted in benefit and pricing actions, causing contraction in our Medicare Advantage membership in the first quarter, which we expect to continue throughout 2026.
Optum Health’s fully accountable value-based care businesses have been impacted by Medicare funding reductions and have also seen continued medical cost trend pressures, which may impact future pricing in the markets we continue to participate in. As a result of increased pricing in response to anticipated care patterns in 2026, the exit from certain markets and decreased people served through UnitedHealthcare Medicare Advantage offerings, the number of people served under value-based care arrangements has contracted in the first quarter and is expected to continue throughout 2026.
Due to elevated care activity in Medicaid, specifically related to behavioral, pharmacy and home health, there continues to be a timing mismatch between the health status of people served and state rate updates. The funding and payment rate environment remains insufficient to meet the health needs of patients and creates the risk of continued downward pressure on Medicaid margin percentages. We continue to take a prudent, market-sustainable posture for both new business and maintenance of existing relationships. We continue to advocate for actuarially sound rates commensurate with our medical cost trends and we remain dedicated to partnering with those states that are committed to the long-term viability of their programs. People served by Medicaid offerings has declined in the first quarter of 2026 due to reduced Medicaid eligibility with further contraction expected during the remainder of 2026 due to reduced Medicaid eligibility and the exit from one state.
Medical Cost Trends. Our medical cost trends primarily relate to changes in unit costs, care activity and prescription drug costs. As expected and contemplated in our benefits design and pricing, we have continued to observe increased care patterns; health care unit costs; and the intensity of services delivered, which are driven by increases in provider pricing and additional services bundled per visit. These trends may continue in future periods. We endeavor to mitigate medical cost increases by engaging hospitals, physicians and consumers with information and helping them make clinically sound choices, with the objective of helping them achieve high-quality, affordable care. Additionally, we have elevated our audit, clinical policy and payment integrity tools to protect customers and patients from unnecessary costs.
Regulatory Trends and Uncertainties
Medicare Advantage Rates. Medicare Advantage rate notices for numerous years have resulted in industry base rates well below the industry forward medical cost trend. While the Final Notice for 2027 moved towards the expected industry forward medical cost trend, it remains below. The compounding impact of multi-year rate shortfalls have created sustained pressure on the Medicare Advantage program. Further, substantial revisions to the risk adjustment model, which serves to adjust rates to reflect a patient’s health status and care resource needs, have resulted and will continue to result in reduced funding and potentially benefits for people, especially those with some of the greatest health and social challenges.
As a result of ongoing Medicare funding pressures, there are adjustments we can make to partially offset these rate pressures and reductions for a particular period. For example, we can seek to intensify our medical and operating cost management, make changes to the size and composition of our care provider networks, adjust member benefits and implement or increase the member premiums supplementing the monthly payments we receive from the government. Additionally, we decide annually on a county-by-county basis where we will offer Medicare Advantage plans.
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SELECTED OPERATING PERFORMANCE AND OTHER SIGNIFICANT ITEMS
The following summarizes select first quarter 2026 year-over-year operating comparisons to first quarter 2025 and other financial results.
•Consolidated revenues grew 2%, UnitedHealthcare revenues grew 2% and Optum revenues were consistent.
•UnitedHealthcare served 1.1 million fewer people due to benefit design and pricing actions and reduced Medicaid eligibility.
•Consolidated earnings from operations of $9.0 billion compared to $9.1 billion last year.
•Diluted earnings per common share were $6.90.
•Cash flows from operations for the three months ended March 31, 2026 were $8.9 billion.
RESULTS SUMMARY
The following table summarizes our consolidated results of operations and other financial information:
| (in millions, except percentages and per share data) | Three Months Ended March 31, | Increase/ (Decrease) | ||||||||||||||||||||||
| 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Premiums | $ | 87,561 | $ | 86,534 | $ | 1,027 | 1 | % | ||||||||||||||||
| Products | 13,250 | 13,036 | 214 | 2 | ||||||||||||||||||||
| Services | 9,779 | 8,972 | 807 | 9 | ||||||||||||||||||||
| Investment and other income | 1,131 | 1,033 | 98 | 9 | ||||||||||||||||||||
| Total revenues | 111,721 | 109,575 | 2,146 | 2 | ||||||||||||||||||||
| Operating costs: | ||||||||||||||||||||||||
| Medical costs | 73,489 | 73,411 | 78 | — | ||||||||||||||||||||
| Operating costs | 15,390 | 13,594 | 1,796 | 13 | ||||||||||||||||||||
| Cost of products sold | 12,823 | 12,390 | 433 | 3 | ||||||||||||||||||||
| Depreciation and amortization | 1,029 | 1,061 | (32) | (3) | ||||||||||||||||||||
| Total operating costs | 102,731 | 100,456 | 2,275 | 2 | ||||||||||||||||||||
| Earnings from operations | 8,990 | 9,119 | (129) | (1) | ||||||||||||||||||||
| Interest expense | (955) | (998) | 43 | (4) | ||||||||||||||||||||
| Loss on sale of subsidiary and subsidiaries held for sale | (72) | (15) | (57) | 380 | ||||||||||||||||||||
| Earnings before income taxes | 7,963 | 8,106 | (143) | (2) | ||||||||||||||||||||
| Provision for income taxes | (1,482) | (1,632) | 150 | (9) | ||||||||||||||||||||
| Net earnings | 6,481 | 6,474 | 7 | — | ||||||||||||||||||||
| Earnings attributable to noncontrolling interests | (201) | (182) | (19) | 10 | ||||||||||||||||||||
| Net earnings attributable to UnitedHealth Group common shareholders | $ | 6,280 | $ | 6,292 | $ | (12) | — | % | ||||||||||||||||
| Diluted earnings per share attributable to UnitedHealth Group common shareholders | $ | 6.90 | $ | 6.85 | $ | 0.05 | ||||||||||||||||||
| Medical care ratio (a) | 83.9 | % | 84.8 | % | (0.9) | % | ||||||||||||||||||
| Operating cost ratio | 13.8 | 12.4 | 1.4 | |||||||||||||||||||||
| Operating margin | 8.0 | 8.3 | (0.3) | |||||||||||||||||||||
| Tax rate | 18.6 | 20.1 | (1.5) | |||||||||||||||||||||
| Net earnings margin (b) | 5.6 | 5.7 | (0.1) | |||||||||||||||||||||
| Return on equity (c) | 26.2 | % | 26.8 | % | (0.6) | |||||||||||||||||||
(a)Medical care ratio (MCR) is calculated as medical costs divided by premium revenue.
(b)Net earnings margin attributable to UnitedHealth Group shareholders.
(c)Return on equity is calculated as annualized net earnings attributable to UnitedHealth Group common shareholders divided by average shareholders’ equity. Average shareholders’ equity is calculated using the shareholders’ equity balance at the end of the preceding year and the shareholders’ equity balances at the end of each of the quarters in the year presented.
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2026 RESULTS OF OPERATIONS COMPARED TO 2025 RESULTS OF OPERATIONS
Consolidated Financial Results
Revenues
The increases in revenues were primarily driven by pricing trends at UnitedHealthcare and growth at Optum Rx, partially offset by decreased people served through Medicare Advantage, commercial risk-based offerings and Medicaid and a decrease in patients served under value-based arrangements at Optum Health.
Medical Costs and MCR
Medical costs were consistent, with expected elevated medical cost trend offset by decreased people served across UnitedHealthcare and Optum Health and increased favorable reserve development. The MCR decreased due to increased favorable reserve development, affordability initiatives and pricing trends, partially offset by expected elevated medical costs trend.
Operating Cost Ratio
The operating cost ratio increased primarily due to investments in people, process and technology to drive improved consumer and care provider experiences and greater operating efficiencies; business mix and the impacts of restructuring and other actions; partially offset by the revenue impacts of government programs, operating cost management and net portfolio divestitures in 2026.
Reportable Segments
See Note 9 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report for more information on our segments. We utilize various metrics to evaluate and manage our reportable segments, including people served by UnitedHealthcare by major market segment and funding arrangement, people served by Optum Health and adjusted scripts for Optum Rx. These metrics are the main drivers of revenue, earnings and cash flows at each business. The metrics also allow management and investors to evaluate and understand business mix, including the level and scope of services provided to people, and pricing trends when comparing the metrics to revenue by segment.
2026 Business Realignment
On January 1, 2026, we realigned certain businesses to respond to changes in the markets we serve and the opportunities that are emerging as the health system evolves. Optum Financial, including Optum Bank, which was historically included in Optum Health is now included in Optum Insight. Our reportable segments remain unchanged; with prior period segment financial information, including people served by Optum; recast to conform to the 2026 presentation.
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The following table presents a summary of the reportable segment financial information:
| Three Months Ended March 31, | Increase/ (Decrease) | |||||||||||||||||||||||
| (in millions, except percentages) | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| UnitedHealthcare | $ | 86,265 | $ | 84,617 | $ | 1,648 | 2 | % | ||||||||||||||||
| Optum Health (a) | 24,109 | 24,837 | (728) | (3) | ||||||||||||||||||||
| Optum Insight (a) | 5,125 | 5,027 | 98 | 2 | ||||||||||||||||||||
| Optum Rx | 35,736 | 35,132 | 604 | 2 | ||||||||||||||||||||
| Optum eliminations (a) | (1,221) | (1,111) | (110) | 10 | ||||||||||||||||||||
| Optum | 63,749 | 63,885 | (136) | — | ||||||||||||||||||||
| Eliminations | (38,293) | (38,927) | 634 | (2) | ||||||||||||||||||||
| Consolidated revenues | $ | 111,721 | $ | 109,575 | $ | 2,146 | 2 | % | ||||||||||||||||
| Earnings from operations | ||||||||||||||||||||||||
| UnitedHealthcare | $ | 5,694 | $ | 5,226 | $ | 468 | 9 | % | ||||||||||||||||
| Optum Health (a) | 1,141 | 1,411 | (270) | (19) | ||||||||||||||||||||
| Optum Insight (a) | 963 | 1,164 | (201) | (17) | ||||||||||||||||||||
| Optum Rx | 1,192 | 1,318 | (126) | (10) | ||||||||||||||||||||
| Optum | 3,296 | 3,893 | (597) | (15) | ||||||||||||||||||||
| Consolidated earnings from operations | $ | 8,990 | $ | 9,119 | $ | (129) | (1) | % | ||||||||||||||||
| Operating margin | ||||||||||||||||||||||||
| UnitedHealthcare | 6.6 | % | 6.2 | % | 0.4 | % | ||||||||||||||||||
| Optum Health (a) | 4.7 | 5.7 | (1.0) | |||||||||||||||||||||
| Optum Insight (a) | 18.8 | 23.2 | (4.4) | |||||||||||||||||||||
| Optum Rx | 3.3 | 3.8 | (0.5) | |||||||||||||||||||||
| Optum | 5.2 | 6.1 | (0.9) | |||||||||||||||||||||
| Consolidated operating margin | 8.0 | % | 8.3 | % | (0.3) | % | ||||||||||||||||||
(a)Prior period amounts have been recast to reflect the realignment of Optum Financial.
UnitedHealthcare
The following table summarizes UnitedHealthcare revenues by business:
| Three Months Ended March 31, | Increase/ (Decrease) | |||||||||||||||||||||||
| (in millions, except percentages) | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||||||||
| UnitedHealthcare Employer & Individual - Domestic | $ | 19,206 | $ | 19,066 | $ | 140 | 1 | % | ||||||||||||||||
| UnitedHealthcare Employer & Individual - Global | 912 | 782 | 130 | 17 | ||||||||||||||||||||
| UnitedHealthcare Employer & Individual - Total | 20,118 | 19,848 | 270 | 1 | ||||||||||||||||||||
| UnitedHealthcare Medicare & Retirement | 42,082 | 41,705 | 377 | 1 | ||||||||||||||||||||
| UnitedHealthcare Community & State | 24,065 | 23,064 | 1,001 | 4 | ||||||||||||||||||||
| Total UnitedHealthcare revenues | $ | 86,265 | $ | 84,617 | $ | 1,648 | 2 | % | ||||||||||||||||
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The following table summarizes the number of people served by our UnitedHealthcare businesses, by major market segment and funding arrangement:
| March 31, | Increase/(Decrease) | |||||||||||||||||||||||
| (in thousands, except percentages) | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||
| Risk-based | 7,725 | 8,410 | (685) | (8) | % | |||||||||||||||||||
| Fee-based | 22,340 | 21,590 | 750 | 3 | ||||||||||||||||||||
| Total Commercial | 30,065 | 30,000 | 65 | — | ||||||||||||||||||||
| Medicare Advantage | 7,555 | 8,245 | (690) | (8) | ||||||||||||||||||||
| Medicaid | 7,160 | 7,570 | (410) | (5) | ||||||||||||||||||||
| Medicare Supplement (Standardized) | 4,270 | 4,310 | (40) | (1) | ||||||||||||||||||||
| Total Community and Senior | 18,985 | 20,125 | (1,140) | (6) | ||||||||||||||||||||
| Total UnitedHealthcare - Medical | 49,050 | 50,125 | (1,075) | (2) | % | |||||||||||||||||||
| Supplemental Data: | ||||||||||||||||||||||||
| Medicare Part D stand-alone | 2,740 | 2,835 | (95) | (3) | % | |||||||||||||||||||
| South American businesses held for sale | 1,160 | 1,160 | — | — | % | |||||||||||||||||||
UnitedHealthcare’s revenues and earnings from operations increased due to pricing trends and actions, including increased Medicaid rates, and growth in people served through fee-based commercial offerings; partially offset by a contraction in people served through Medicare Advantage, risk-based commercial offerings and Medicaid offerings; and our pledge to rebate profits on our individual exchange products to customers. Earnings from operations also increased due to affordability initiatives and increased favorable reserve development, partially offset by investments to support future growth.
Optum
Total revenues decreased due to Optum Health, partially offset by growth in Optum Rx. Earnings from operations decreased across the Optum segments. The results by segment were as follows:
Optum Health
Revenues at Optum Health decreased primarily due to fewer patients served under value-based arrangements, partially offset by business combinations. Earnings from operations decreased due to continued elevated medical cost trends, the impacts of net portfolio divestitures and investments to support future growth, partially offset by cost management, favorable reserve development and the reduction of loss contract reserves established in the fourth quarter of 2025. Optum Health served approximately 93 million people and 95 million people as of March 31, 2026 and March 31, 2025, respectively.
Optum Insight
Revenues at Optum Insight increased due to elevated investment and other income and growth in technology services, partially offset by lower volumes within business services. Earnings from operations decreased due to investments in people, technology and new products; the impacts of restructuring and other actions and lower volumes within business services; partially offset by net portfolio divestitures in 2026, elevated investment and other income and growth in technology services.
Optum Rx
Revenues at Optum Rx increased due to growth in specialty pharmacy partially offset by decreased script volume due to contraction in people served at UnitedHealthcare. Earnings from operations decreased due to lower script volumes and investments in people, partially offset by growth in specialty pharmacy. Optum Rx fulfilled 383 million and 408 million adjusted scripts in the first quarters of 2026 and 2025, respectively.
19
LIQUIDITY, FINANCIAL CONDITION AND CAPITAL RESOURCES
Liquidity
Summary of our Major Sources and Uses of Cash and Cash Equivalents
| Three Months Ended March 31, | Increase/(Decrease) | |||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||
| Sources of cash: | ||||||||||||||||||
| Cash provided by operating activities | $ | 8,912 | $ | 5,456 | $ | 3,456 | ||||||||||||
| Issuances of short-term borrowings and long-term debt, net of repayments | — | 3,911 | (3,911) | |||||||||||||||
| Cash received from dispositions and other strategic transactions, net | 1,081 | 21 | 1,060 | |||||||||||||||
| Proceeds from common stock issuances | 231 | 360 | (129) | |||||||||||||||
| Sales and maturities of investments, net of purchases | — | 1,217 | (1,217) | |||||||||||||||
| Repayments of care provider loans - cyberattack | 82 | 891 | (809) | |||||||||||||||
| Customer funds administered | 600 | 1,245 | (645) | |||||||||||||||
| Total sources of cash | 10,906 | 13,101 | (2,195) | |||||||||||||||
| Uses of cash: | ||||||||||||||||||
| Cash dividends paid | (2,005) | (1,912) | (93) | |||||||||||||||
| Common stock repurchases | — | (3,000) | 3,000 | |||||||||||||||
| Repayments of short-term borrowings and long-term debt, net of issuances | ||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-04-23 | Conway Patrick Hugh | Chief Executive Officer, Optum | Sell | -800 | $355.00 | -$284,000 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-10 10-Q expected by 2026-08-15 (in 87 days)
- ~2026-10-27 10-Q expected by 2026-11-01 (in 165 days)
- ~2027-03-04 10-K expected by 2027-04-03 (in 293 days)
- ~2027-05-04 10-Q expected by 2027-05-09 (in 354 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-05 10-Q Quarterly Report
- 2026-04-21 8-K Earnings Release; Financial Statements and Exhibits
- 2026-03-02 10-K Annual Report
- 2026-03-02 8-K Officer/Director Change
- 2026-02-25 8-K Officer/Director Change
- 2026-01-27 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-21 8-K Officer/Director Change
- 2025-10-28 10-Q Quarterly Report
- 2025-10-28 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-11 10-Q Quarterly Report
- 2025-07-31 8-K Officer/Director Change
- 2025-07-29 8-K Earnings Release; Financial Statements and Exhibits
- 2025-07-24 8-K Other Events
- 2025-06-20 8-K Other Events; Financial Statements and Exhibits
- 2025-06-04 8-K Officer/Director Change; Shareholder Vote Results