UnitedHealth has bounced back with impressive growth, surpassing initial expectations after grappling with high medical expenses earlier this year and retracting its 2025 forecast.

On Tuesday, executives from the healthcare giant revealed that the current rate of healthcare utilization aligns with their predictions. The company anticipates robust annual growth next year, with a significant boost projected by 2027. Presently, UnitedHealth is navigating a transitional phase, revising health insurance pricing, and shedding less profitable segments of its operations.

This strategic shift includes reducing its individual health insurance enrollments and shedding approximately one million customers from its Medicare Advantage division. This segment offers private alternatives to the government’s insurance program, primarily serving individuals aged 65 and older.

With a customer base of 8.4 million, UnitedHealth stands as the leading provider of Medicare Advantage plans in the United States.

On Tuesday, the company projected its adjusted earnings for the year to be at least $16.25 per share, surpassing the analyst consensus of $16.21 per share, as reported by FactSet.

UnitedHealth started 2025 with expectations of making more than $30 a share. But the company later withdrew its forecast in a tumultuous May that included the abrupt departure of former CEO Andrew Witty.

UnitedHealth Group Inc. runs one of the nation’s largest health insurance and pharmacy benefits management businesses. Its Optum business also provides care and technology support.

The company has been struggling with challenges like Medicare funding cuts and health care use that rose faster than expected when UnitedHealth set coverage prices. The company runs coverage for more than 50 million people.

UnitedHealth leaders said Tuesday that medical cost trends remain high but more within the range of what it forecast in the second quarter.

In the recently completed third quarter, UnitedHealth’s profit tumbled 61% to about $2.35 billion. But the company reported better-than-expected adjusted earnings of $2.92 per share. Total revenue climbed 12% to about $113.16 billion.

Analysts had forecast earnings of $2.80 per share on $113.03 billion in revenue.

UnitedHealth CEO Stephen Hemsley said Tuesday that the company would lay out its 2026 forecast in January. But he said the current Wall Street consensus represents a likely starting point for the year.

FactSet says analysts are forecasting adjusted earnings of $17.59 per share for next year.

Shares of Eden Prairie, Minnesota-based UnitedHealth edged up nearly $2 to $367.99 Tuesday in mid-morning trading. Broader indexes also rose slightly.

The stock was down 27% so far this year as of Monday’s close. Shares received a boost in August, when Warren Buffett’s Berkshire Hathaway disclosed a stake in UnitedHealth.