UnitedHealth Group

UNH Q1 2025 Earnings

Reported Apr 17, 2025 at 6:01 AM ET · SEC Source

Q1 25 EPS

$7.20

MISS 1.28%

Est. $7.29

Q1 25 Revenue

$109.58B

MISS 1.82%

Est. $111.60B

vs S&P Since Q1 25

-56.8%

TRAILING MARKET

UNH -19.9% vs S&P +36.9%

Market Reaction

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, u… Read more 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
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UNH YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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UNH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“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%.”

— Andrew Witty, Q1 2025 Earnings Press Release