Zacks Research Issues Pessimistic Outlook for UNH Earnings

Key Points

• Zacks Research cut its Q2 2027 EPS estimate for UnitedHealth to $5.15 from $5.27, signaling a more cautious outlook for the company’s near-term earnings. The firm also laid out estimates for later quarters and fiscal years, including FY2027 EPS of $20.52.
• UnitedHealth’s latest quarterly results beat expectations, with EPS of $7.23 versus the $6.76 consensus and revenue of $111.65 billion topping forecasts. The company also maintained FY2026 guidance of 18.250 EPS.
• Analyst sentiment remains mostly constructive despite the downgrade, with the stock holding a “Moderate Buy” consensus rating and a $381.48 average price target. However, the article notes ongoing concerns about rising medical costs and pressure on margins.

UnitedHealth Group Incorporated (NYSE:UNH - Free Report) - Analysts at Zacks Research decreased their Q2 2027 EPS estimates for UnitedHealth Group in a research note issued on Monday, May 18th. Zacks Research analyst Team now expects that the healthcare conglomerate will post earnings of $5.15 per share for the quarter, down from their previous estimate of $5.27. The consensus estimate for UnitedHealth Group's current full-year earnings is $18.29 per share. Zacks Research also issued estimates for UnitedHealth Group's Q3 2027 earnings at $4.57 EPS, Q4 2027 earnings at $3.92 EPS, FY2027 earnings at $20.52 EPS, Q1 2028 earnings at $6.41 EPS and FY2028 earnings at $22.75 EPS.

UnitedHealth Group (NYSE:UNH - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The healthcare conglomerate reported $7.23 earnings per share for the quarter, topping the consensus estimate of $6.76 by $0.47. The business had revenue of $111.65 billion for the quarter, compared to analysts' expectations of $109.84 billion. UnitedHealth Group had a net margin of 2.68% and a return on equity of 14.65%. The company's revenue was up 2.0% compared to the same quarter last year. During the same quarter last year, the company posted $7.20 EPS. UnitedHealth Group has set its FY 2026 guidance at 18.250- EPS.

A number of other equities research analysts have also issued reports on the stock. KeyCorp reaffirmed an "overweight" rating on shares of UnitedHealth Group in a report on Wednesday, January 28th. Leerink Partners boosted their price target on shares of UnitedHealth Group from $345.00 to $400.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Erste Group Bank upgraded shares of UnitedHealth Group from a "hold" rating to a "buy" rating in a report on Monday, April 27th. Sanford C. Bernstein lifted their price target on UnitedHealth Group from $405.00 to $411.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 7th. Finally, Mizuho decreased their price objective on UnitedHealth Group from $430.00 to $350.00 and set an "outperform" rating on the stock in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $381.48.

UnitedHealth Group Stock Down 0.5%

NYSE UNH opened at $389.19 on Wednesday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.69. UnitedHealth Group has a 52 week low of $234.60 and a 52 week high of $404.15. The company has a market capitalization of $353.44 billion, a P/E ratio of 29.39, a price-to-earnings-growth ratio of 1.69 and a beta of 0.64. The stock's 50-day moving average price is $320.90 and its 200-day moving average price is $318.59.

UnitedHealth Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Monday, March 9th were issued a $2.21 dividend. This represents a $8.84 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Monday, March 9th. UnitedHealth Group's dividend payout ratio is presently 66.77%.

Insider Transactions at UnitedHealth Group

In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 800 shares of the company's stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $355.00, for a total value of $284,000.00. Following the transaction, the chief executive officer owned 17,805 shares of the company's stock, valued at $6,320,775. This represents a 4.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.28% of the stock is currently owned by insiders.

Institutional Investors Weigh In On UnitedHealth Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its holdings in shares of UnitedHealth Group by 176.2% in the 4th quarter. Brighton Jones LLC now owns 44,249 shares of the healthcare conglomerate's stock worth $22,384,000 after buying an additional 28,231 shares during the period. Revolve Wealth Partners LLC lifted its stake in UnitedHealth Group by 137.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 4,019 shares of the healthcare conglomerate's stock worth $2,033,000 after acquiring an additional 2,324 shares during the period. CMT Capital Markets Trading GmbH bought a new position in UnitedHealth Group during the 2nd quarter worth about $340,000. Flow Traders U.S. LLC bought a new stake in shares of UnitedHealth Group in the 2nd quarter valued at about $356,000. Finally, Jump Financial LLC bought a new position in shares of UnitedHealth Group during the second quarter valued at approximately $377,000. Institutional investors own 87.86% of the company's stock.

More UnitedHealth Group News

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

• Neutral Sentiment: Berkshire’s exit may be more about portfolio reshuffling under Greg Abel than a clear change in UnitedHealth’s fundamentals, so the selloff could be sentiment-driven rather than purely operational. Reuters: UnitedHealth falls after Berkshire sells stake in health insurer
• Neutral Sentiment: Zacks Research raised its Q1 2027 earnings estimate for UNH to $6.87 per share from $6.77, signaling some analyst confidence ahead of future results. Zacks: UnitedHealth Under the Microscope After Berkshire Pulls the Plug
• Neutral Sentiment: A proposed bill focused on HSA expansion, price transparency, and prescription-drug access could affect managed-care economics over time, but it is still early-stage and not an immediate catalyst. Quiver Quantitative: New Bill H.R. 8324
• Negative Sentiment: Multiple reports also highlight UNH’s recent weakness tied to rising medical costs and unfavorable member mix, reinforcing investor concerns that margins may remain pressured. Yahoo Finance: UnitedHealth Group (UNH) Fell 33% as Rising Medical Costs and Member Mix Pressured Earnings

UnitedHealth Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.