UNH · 10-Q · 2026Q2 · Full report

Operating Expense Trends

UNITEDHEALTH GROUP INC · 2026-08-10 · Importance 57 · Surprise 50 · From source text

Operating costs increased $2.286 billion, or 8%, to $29.658 billion for the six months ended June 30, 2026, while the operating cost ratio rose 0.9 percentage points to 13.3%. The higher ratio primarily reflected investments in people, processes and technology, business mix, and the six-month effect of restructuring and other actions. These increases were partly offset by operating cost management and the revenue effects of government programs. Depreciation and amortization declined $76 million, or 4%, to $2.069 billion for six months.

Key facts

• Consolidated earnings from operations were $8.0 billion for the three months ended June 30, 2026 compared to $5.2 billion last year. source
• Total operating costs for the three months ended June 30, 2026 were $104,041 million compared to $106,466 million for the three months ended June 30, 2025, a decrease of $2,425 million (2%). source
• For the six months ended June 30, 2026, restructuring and other actions increased operating costs by $415 million, increased investment and other income by $75 million, and decreased medical costs by $187 million. source
• Earnings from operations at Optum Health increased due to cost management, favorable reserve development and the net decrease in loss contract reserves, partially offset by elevated medical cost trends, net portfolio divestitures and investments to support future growth. source
• Optum Insight earnings from operations for the three months ended June 30, 2026 increased due to growth in business services, while for the six months ended June 30, 2026 earnings decreased due to investments in people, technology and new products and impacts of restructuring and other actions, partially offset by net portfolio divestitures. source
• During the three months ended June 30, 2026, restructuring and other items increased investment and other income by $1 million and decreased medical costs by $50 million. source
• Operating cost ratio was 12.7% for the three months ended June 30, 2026 compared to 12.3% for the three months ended June 30, 2025, an increase of 0.4 percentage points. source

Impact estimates