Unitedhealth Group Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.37%.
Did UNH Beat Earnings? Q4 2025 Results
UnitedHealth Group delivered a mixed fourth quarter for fiscal 2025, matching adjusted EPS expectations at $2.11 while revenue of $113.22 billion came in just 0.37% below the $113.64 billion consensus, yet still represented a 12.3% increase year over year. The headline numbers, however, obscure a far more turbulent story beneath the surface: a $2.88 billion pre-tax charge, encompassing $799 million in final cyberattack remediation costs alongside sweeping restructuring actions, collapsed GAAP earnings to just $0.01 per share for the quarter. The broader 2025 picture was similarly strained, as CMS Medicare funding reductions and accelerating medical costs pushed the full-year adjusted medical care ratio to 88.9%, up 340 basis points year over year, a dynamic pressuring rivals across the managed care sector as well. Looking ahead, UnitedHealth guided 2026 revenues above $439 billion, a deliberate contraction of roughly 2% as the company exits unprofitable contracts, while targeting adjusted EPS above $17.75 and operating earnings exceeding $24 billion, signaling a measured recovery rather than a swift rebound.
- UnitedHealthcare Medicare & Retirement revenue grew 23% year-over-year driven by growth in people served and Inflation Reduction Act Part D impacts
- Optum Rx revenue grew 16% year-over-year driven by growth in pharmacy services and volume growth from new and existing clients
- UnitedHealthcare Community & State revenue grew 17% year-over-year driven by growth in serving people with complex needs and Medicaid rate increases
- Adjusted medical care ratio increased 340 basis points year-over-year due to Medicare funding reductions and accelerating medical cost trends
- Cash flows from operations were higher than anticipated due to timing of payments received in 2025 that were expected in 2026
“We confronted challenges directly and finished 2025 as a much stronger company, giving us the momentum to better serve those who count on us and continue to improve our core performance.”
UnitedHealth Group CEO, on the earnings call
Forward Guidance & Outlook
Full year 2026 revenue outlook exceeds $439.0 billion, reflecting a planned ~2% year-over-year decline due to strategic right-sizing across the enterprise. Earnings from operations are expected to exceed $24.0 billion with an operating margin of ~5.5%. Adjusted EPS is guided above $17.75 and GAAP EPS above $17.10. Cash flows from operations are expected to exceed $18.0 billion. The consolidated medical care ratio is expected to be 88.8% ± 50 basis points, a 30 basis point improvement from 2025. The operating cost ratio is expected at 12.8% ± 50 basis points. UnitedHealthcare membership is expected to range between 46.9 million and 47.5 million, down from 49.8 million in 2025 due to planned exits from unprofitable contracts. The company plans ~$2.5 billion in share repurchases and ~$8.0 billion in dividends in 2026, and targets reaching its long-term debt-to-capital ratio of 40.0%.
UNH YoY Financials
UNH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.