UnitedHealth Shares Surge Following Strong Q3 Earnings and Upgraded Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Source: TipRanks
Updated: Oct 28 20250mins
Earnings Performance: UnitedHealth reported a strong third-quarter performance with adjusted earnings per share of $2.92, exceeding expectations, although down from $7.15 in the previous year. Revenue increased by 12% year-over-year to $113.16 billion, surpassing estimates.
Outlook and Growth: The company raised its full-year earnings per share outlook for fiscal 2025 to $14.90, with adjusted earnings now expected to reach at least $16.25. UnitedHealthcare's revenue grew 16% year-over-year, driven by its Medicare & Retirement and Community & State segments.
Challenges and Strategy: UnitedHealth is facing challenges in its Medicare business, currently under investigation by the Justice Department, but expects improvements in margins by 2026. The company is implementing an aggressive turnaround strategy under CEO Stephen Hemsley.
Analyst Ratings: Analysts have a Moderate Buy consensus rating for UNH stock, with 18 Buys, two Holds, and two Sell ratings. The average price target suggests a slight downside potential from current levels, indicating mixed long-term outlooks among analysts.
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Analyst Views on UNH
Wall Street analysts forecast UNH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNH is 393.95 USD with a low forecast of 260.00 USD and a high forecast of 440.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
17 Buy
3 Hold
1 Sell
Strong Buy
Current: 333.490
Low
260.00
Averages
393.95
High
440.00
Current: 333.490
Low
260.00
Averages
393.95
High
440.00
TD Cowen
Hold
maintain
$335 -> $338
2025-10-30
Reason
TD Cowen
Price Target
$335 -> $338
2025-10-30
maintain
Hold
Reason
TD Cowen raised the firm's price target on UnitedHealth to $338 from $335 and keeps a Hold rating on the shares. The firm updated its model as Q3 results checked a lot of boxes; adjusted EPS beat, FY25 guide raise, tax rate/investment income inline. They raise the target but keep the P/E target unchanged.
Bernstein
Lance Wilkes
Outperform
maintain
$433 -> $440
2025-10-30
Reason
Bernstein
Lance Wilkes
Price Target
$433 -> $440
2025-10-30
maintain
Outperform
Reason
Bernstein analyst Lance Wilkes raised the firm's price target on UnitedHealth to $440 from $433 and keeps an Outperform rating on the shares. The firm has updated its UnitedHealth EPS model post-Q3 earnings. Bernstein expects a sector-wide turnaround as MA and Medicaid recover from trough margins following MA rate shocks, withdrawal of competition, and redeterminations. The firm sees evidence that pricing discipline is being restored in MA and Optum Health, which will shock growth in the short-term but restore margin more swiftly. Bernstein sees UnitedHealth's valuation as attractive given its expectation for outsized EPS growth recovery over the next 4 years.
BofA
Neutral
maintain
$390 -> $410
2025-10-29
Reason
BofA
Price Target
$390 -> $410
2025-10-29
maintain
Neutral
Reason
BofA raised the firm's price target on UnitedHealth to $410 from $390 and keeps a Neutral rating on the shares. Q3 was "a little surprising" in that UHC margins outperformed while Optum Health and Insight both came in below expectations, the analyst tells investors. The "good news" is that UnitedHealth was able to handle the incremental investment and raised guidance by 25c, giving the firm more confidence that "it gave itself plenty of cushion" in its Q2 guidance reset, adds the analyst, who also raised the firm's estimates to reflect updated guidance.
Oppenheimer
Oppenheimer
Outperform
maintain
$325 -> $415
2025-10-29
Reason
Oppenheimer
Oppenheimer
Price Target
$325 -> $415
2025-10-29
maintain
Outperform
Reason
Oppenheimer raised the firm's price target on UnitedHealth to $415 from $325 and keeps an Outperform rating on the shares. The firm notes the company produced solid Q3 results, raising its outlook and reiterating most long-term targets. For MA, the outlook remains on track with prior comments, with 2026 margins expected to improve in 2026 and then return to the top-end of its 2%-4% target range by 2027. Meanwhile, OptumHealth expects margin improvement in 2026 as it rebounds toward long-term target margins of 6%-8%, Oppenheimer adds. Overall, the firm believes these results were a first positive step for UnitedHealth, which is setting more realistic goals as it looks to re-establish credibility with the Street.
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About UNH
UnitedHealth Group Incorporated is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. Optum Health offers comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being. Optum Health delivers primary, specialty and surgical care; helps patients and providers navigate and address complex, chronic and behavioral health needs. Optum Insight connects the healthcare system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the healthcare system. Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies and the provision of in-home and community-based infusion services.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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