Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at UnitedHealth (NYSE:UNH) and its peers.
Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.
The 12 health insurance providers stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 1.1% below.
In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.
UnitedHealth (NYSE:UNH)
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
UnitedHealth reported revenues of $113.2 billion, up 12.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ customer base estimates but revenue in line with analysts’ estimates.
“We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond, and our results this quarter reflect solid execution toward that goal,” said Stephen Hemsley, chief executive officer of UnitedHealth Group.
Unsurprisingly, the stock is down 6.5% since reporting and currently trades at $341.33.
Is now the time to buy UnitedHealth? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: CVS Health (NYSE:CVS)
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
CVS Health reported revenues of $102.9 billion, up 7.8% year on year, outperforming analysts’ expectations by 4.1%. The business had an exceptional quarter with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.3% since reporting. It currently trades at $80.28.
Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Molina Healthcare (NYSE:MOH)
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Molina Healthcare reported revenues of $11.48 billion, up 11% year on year, exceeding analysts’ expectations by 4.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.
Molina Healthcare delivered the weakest full-year guidance update in the group. The company lost 118,000 customers and ended up with a total of 5.63 million. As expected, the stock is down 9% since the results and currently trades at $177.09.
Read our full analysis of Molina Healthcare’s results here.
Cencora (NYSE:COR)
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Cencora reported revenues of $83.73 billion, up 5.9% year on year. This number topped analysts’ expectations by 0.5%. It was a satisfactory quarter as it also recorded a narrow beat of analysts’ full-year EPS guidance estimates.
Cencora had the slowest revenue growth among its peers. The stock is down 1.6% since reporting and currently trades at $339.10.
Read our full, actionable report on Cencora here, it’s free for active Edge members.
Humana (NYSE:HUM)
With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Humana reported revenues of $32.65 billion, up 11.4% year on year. This result surpassed analysts’ expectations by 2.1%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ customer base estimates.
The company added 150,000 customers to reach a total of 14.99 million. The stock is down 2.6% since reporting and currently trades at $274.55.
Read our full, actionable report on Humana here, it’s free for active Edge members.
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