As of 2025, the healthcare sector, particularly Managed Care Organizations (HMOs), faced challenges due to high medical utilization rates and regulatory uncertainties, which affected companies like UnitedHealth Group, Elevance Health, and Centene Corporation. However, recent trends indicate a turnaround, with insurers beginning to regain control over margins and improve cost management strategies, setting a more favorable outlook for 2026.
Key drivers of this recovery include improved pricing discipline, the advantages of scale for larger HMOs, and strong demographic trends supporting enrollment growth. Notably, UnitedHealth’s projected 2026 earnings estimate is $17.60 per share, reflecting 8% growth from 2025, while CVS Health anticipates earnings of $7.14 per share, a 7.5% increase. Centene Corporation expects a significant 46.6% jump to $2.94 per share. The sector appears more investable heading into 2026, with insurers expected to better align premiums with medical costs.
