Companies /Healthcare

Unitedhealth Group Inc

NYSE: UNH Healthcare Plans
$394.49
▼ $6.52 (−1.63%) today
Markets open · 1:37pm ET

Q1 2025 Earnings

Reported Apr 17, 2025, 6:01am ET · SEC source
$7.20
Miss −1.23%
EPS · est. $7.29
$109.6B
Miss −1.82%
Revenue · est. $111.6B
−41.8%
Trailing market
UNH vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Apr 17Apr 17report 6:01am ETearnings−0.5%−12.5%
−12%−6%0+6%Apr 17Apr 17earnings−0.5%−12.5%
UNH −12.5%S&P 500 −0.5%
−12%−6%0+6%Apr 17Apr 17report 6:01am ETearnings−0.7%−12.5%
−12%−6%0+6%Apr 17Apr 17earnings−0.7%−12.5%
UNH −12.5%NASDAQ −0.7%
0+20%Apr 16Apr 25report 6:01am ETearnings+3.2%−9.6%
0+20%Apr 16Apr 25earnings+3.2%−9.6%
UNH −9.6%S&P 500 +3.2%
0+20%Apr 16Apr 25report 6:01am ETearnings+4.1%−9.6%
0+20%Apr 16Apr 25earnings+4.1%−9.6%
UNH −9.6%NASDAQ +4.1%
−22.38%
Day of report
−6.34%
Next session
−7.81%
One week
−29.18%
30 days

S&P 500 over the same 30 days: +12.62%.

Did UNH Beat Earnings? Q1 2025 Results

UnitedHealth Group delivered a bruising first quarter, missing on both the top and bottom lines and slashing its full-year outlook in a result that sent shares tumbling more than 22%. The health care giant posted Q1 2025 revenue of $109.58 billion, up 9.8% year-over-year but short of the $111.60 billion consensus by 1.82%, while earnings per share of $7.20 fell just below the $7.29 estimate. The culprit was a surge in care activity within its Medicare Advantage business, particularly in physician and outpatient services, that ran well ahead of already-elevated expectations, pushing the medical care ratio to 84.8% from 84.3% a year ago. Compounding the pressure, unanticipated changes in Optum Health's member profile weighed on reimbursement. In response, management revised its 2025 adjusted earnings outlook to $26.00 to $26.50 per share, down from prior targets, though executives characterized the headwinds as highly addressable and reaffirmed a long-term earnings growth target of 13% to 16%.

Key Takeaways
  • Revenue growth driven by serving more people more comprehensively across the enterprise
  • Self-funded commercial benefits membership increased by approximately 700,000 in Q1
  • Seniors and complex needs membership grew by 545,000 in Q1
  • State-based community plan membership increased to 7.6 million
  • Optum Rx growth driven by new clients and expanded existing client relationships
  • Operating cost ratio improved to 12.4% from 14.1% due to Part D program changes and operating efficiencies

“UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%.”

UnitedHealth Group CEO, on the earnings call

Forward Guidance & Outlook

UnitedHealth Group revised its 2025 full-year outlook downward to net earnings of $24.65 to $25.15 per share and adjusted earnings of $26.00 to $26.50 per share. The revision reflects heightened care activity in Medicare Advantage businesses (particularly physician and outpatient services) far above planned increases, and unanticipated changes in Optum Health member profiles impacting reimbursement due to minimal 2024 beneficiary engagement by plans exiting markets, compounded by Medicare funding reductions. Management believes these factors are highly addressable over the course of 2025 and into 2026. The company targets a long-term earnings growth rate of 13% to 16%. Seniors and complex needs membership is expected to grow up to 800,000 in 2025, and Optum Health expects to serve 650,000 new value-based care patients in 2025.

UNH YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$40.0B$80.0B$120.0B$99.8B$109.6BRevenue$7.9B$9.1BOperating Income$973.2M$6.3BNet Income
$0$40.0B$80.0B$120.0BRevenueOperating IncomeNet Income

UNH Revenue by Segment

UnitedHealthcare$84.6B
UnitedHealthcare Medicare & Retirement$41.7B
Optum Rx$35.1B
Optum Health$25.3B
UnitedHealthcare Community & State$23.1B
UnitedHealthcare Employer & Individual$782.0M
Optum Insight$4.6B

Figures from SEC filings and company reports. Not investment advice.