UnitedHealth Group signage on the floor of the New York Stock Exchange on April 21, 2025.

UnitedHealth Group on Tuesday posted third-quarter earnings that blew past estimates and raised its full-year profit outlook, as the company continues to manage high medical costs and sees investments in value-based care and artificial intelligence take hold.

The nation's largest private insurer said it expects fiscal 2026 adjusted earnings of at least $20.50 per share, up from a previous outlook of $19.50 to $20 per share.

The healthcare giant's turnaround plan is gaining momentum after three consecutive strong quarters this year. UnitedHealth is working to stabilize margins by shrinking membership, exiting unprofitable contracts and ramping up investments in artificial intelligence and value-based care, which tie doctor and facility compensation to patient health outcomes, quality of care and cost effectiveness rather than the volume of medical services provided.

"You'll see in the quarter that we continue to execute not only on the financial aspects of our business, but really doing them with a simpler approach and an approach that's really focused on investing heavily in value-based care," CFO Wayne DeVeydt said in an interview.

Shares of the company rose about 3% in premarket trading.

Here's what the company reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $4.69 adjusted vs. $4.14 expected

$4.69 adjusted vs. $4.14 expected Revenue: $112.69 billion vs. $111.40 billion expected

The company posted third-quarter net income of $4.11 billion, or $4.56 per share, compared with $2.35 billion, or $2.59 per share, in the same period a year ago. Excluding items like business divestitures, restructuring and the expected reduction of reserves for unprofitable contracts, UnitedHealth earned $4.69 per share.

Revenue fell to $112.69 billion from $113.16 billion in the prior-year quarter. The company's insurer, UnitedHealthcare, and its Optum healthcare unit both topped analysts' operating earnings estimates for the quarter, according to StreetAccount.