Erste Group Bank Has Strong Forecast for UNH FY2026 Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for UnitedHealth Group to $19.85 from $18.33, above the $19.69 consensus estimate, and projects FY2027 EPS of $22.44. The bank maintains a “Buy” rating.
• UnitedHealth’s latest quarter exceeded expectations, with $6.38 EPS and $112.03 billion in revenue, prompting the company to guide for FY2026 EPS of $19.50–$20.00.
• Analyst sentiment remains favorable, with UNH carrying a consensus “Moderate Buy” rating and an average price target of $455.92; the company also increased its quarterly dividend to $2.32 per share.

UnitedHealth Group Incorporated (NYSE:UNH - Free Report) - Erste Group Bank increased their FY2026 EPS estimates for UnitedHealth Group in a research note issued to investors on Monday, July 27th. Erste Group Bank analyst H. Engel now expects that the healthcare conglomerate will post earnings of $19.85 per share for the year, up from their previous forecast of $18.33. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for UnitedHealth Group's current full-year earnings is $19.69 per share. Erste Group Bank also issued estimates for UnitedHealth Group's FY2027 earnings at $22.44 EPS.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.94 by $1.44. The company had revenue of $112.03 billion for the quarter, compared to the consensus estimate of $110.81 billion. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The company's revenue for the quarter was up .4% on a year-over-year basis. During the same period last year, the firm posted $4.08 EPS. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS.

Several other analysts also recently issued reports on UNH. Argus raised UnitedHealth Group from a "hold" rating to a "buy" rating and set a $400.00 price target on the stock in a report on Wednesday, April 22nd. KeyCorp increased their target price on UnitedHealth Group from $400.00 to $475.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Robert W. Baird upgraded shares of UnitedHealth Group from an "underperform" rating to a "neutral" rating and upped their price target for the stock from $287.00 to $453.00 in a research report on Thursday, July 16th. Wells Fargo & Company boosted their target price on shares of UnitedHealth Group from $397.00 to $485.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Finally, Zacks Research upgraded shares of UnitedHealth Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 13th. Two research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $455.92.

UnitedHealth Group Stock Performance

Shares of NYSE UNH opened at $421.30 on Thursday. The stock has a market capitalization of $382.60 billion, a P/E ratio of 27.11, a P/E/G ratio of 1.49 and a beta of 0.62. The firm's 50-day moving average price is $410.08 and its two-hundred day moving average price is $347.25. UnitedHealth Group has a 52-week low of $234.60 and a 52-week high of $461.62. The company has a quick ratio of 0.80, a current ratio of 0.78 and a debt-to-equity ratio of 0.66.

UnitedHealth Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Monday, June 15th were given a $2.32 dividend. The ex-dividend date was Monday, June 15th. This represents a $9.28 dividend on an annualized basis and a yield of 2.2%. This is a boost from UnitedHealth Group's previous quarterly dividend of $2.21. UnitedHealth Group's payout ratio is currently 59.72%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in UNH. Sarver Vrooman Wealth Advisors acquired a new position in shares of UnitedHealth Group during the 4th quarter valued at $25,000. Anfield Capital Management LLC grew its holdings in UnitedHealth Group by 220.0% during the fourth quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate's stock worth $26,000 after acquiring an additional 55 shares during the period. Joseph Group Capital Management acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $27,000. Nalls Sherbakoff Group LLC acquired a new position in shares of UnitedHealth Group in the 4th quarter worth approximately $27,000. Finally, Lifetime Wealth Management P.C. bought a new stake in shares of UnitedHealth Group in the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 87.86% of the company's stock.

Key Stories Impacting UnitedHealth Group

Here are the key news stories impacting UnitedHealth Group this week:

• Positive Sentiment: Strong Q2 results and higher guidance: UnitedHealth reported $112.03 billion in revenue and $6.38 in adjusted earnings per share, exceeding consensus estimates of $110.81 billion and $4.94, respectively. Improved margins and a lower medical cost ratio supported the company’s decision to raise its 2026 earnings outlook to $19.50–$20.00 per share. UnitedHealth Just Gave Wall Street a Clearer Turnaround Signal
• Positive Sentiment: Cost controls are improving investor confidence: Analysts highlighted the lower medical costs, stronger profitability and ongoing share repurchases as evidence that UnitedHealth’s turnaround is gaining traction. The company is increasingly viewed as a buy candidate following the earnings beat. UnitedHealth's Cost-Control Story is Gaining Momentum
• Positive Sentiment: Broker sentiment remains favorable: Wall Street brokerages have assigned UNH a consensus “Moderate Buy” rating, while the company’s earnings strength has placed it among several blue-chip stocks favored after strong second-quarter results. UnitedHealth Given Moderate Buy Consensus
• Positive Sentiment: Community-care investment: UnitedHealth committed $4 million to expand health hubs with UT Health Sciences across Tennessee, potentially strengthening local healthcare access and the company’s long-term community relationships. UnitedHealth Partners with UT Health Sciences

About UnitedHealth Group

UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.

UnitedHealthcare is the company's benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.

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