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AI Earnings Analysis
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $447.57B | $400.28B | +11.81% |
Cost of Revenue | $50.66B | $46.69B | +8.48% |
Operating Income | $18.96B | $32.29B | -41.26% |
Net Income | $12.06B | $14.4B | -16.31% |
EPS (Basic) | $13.28 | $15.64 | -15.09% |
EPS (Diluted) | $13.23 | $15.51 | -14.70% |
SG&A Expense | $59.59B | $53.01B | +12.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $309.58B | $298.28B | +3.79% |
Current Assets | $90.58B | $85.78B | +5.60% |
Total Liabilities | $207.88B | $195.69B | +6.23% |
Current Liabilities | $114.9B | $103.77B | +10.72% |
Cash & Equivalents | $24.36B | $25.31B | -3.74% |
Long-Term Debt | $72.32B | $72.36B | -0.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $19.7B | $24.2B | -18.62% |
Investing Cash Flow | $-8.69B | $-20.53B | +57.69% |
Financing Cash Flow | $-11.64B | $-3.51B | -231.55% |
Share Buybacks | $5.54B | $9B | -38.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 4.2% | 8.1% | -3.83% |
Net Margin | 2.7% | — | — |
ROA | 3.9% | — | — |
Current Ratio | $0.788 | — | — |
UnitedHealth Group reported FY2025 revenue of $447.6B (+11.8% YoY), but operating income collapsed 41.3% to $19.0B and net income fell 16.3% to $12.1B, reflecting severe cost pressures and elevated medical costs that sharply compressed margins.
Total revenue grew 11.8% YoY to $447.6B in FY2025, up from $400.3B in FY2024, reflecting continued membership expansion and premium increases across UnitedHealth's insurance and Optum segments.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income fell 41.3% YoY from $32.3B to $19.0B, with operating margin contracting sharply from 8.1% to 4.2%, indicating that cost of revenue and SG&A growth significantly outpaced revenue gains.
Source: Source: 10-K Income Statement (XBRL Financial Data)
SG&A expenses rose 12.4% YoY to $59.6B, outpacing revenue growth of 11.8%, while cost of revenue increased 8.5% to $50.7B, together squeezing profitability across the business.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockThe sharp 41.3% decline in operating income despite 11.8% revenue growth strongly suggests a significant increase in the medical cost ratio (MCR), a critical metric for health insurers. Elevated medical utilization, particularly in government-sponsored programs like Medicare Advantage, can rapidly erode profitability. If medical costs continue to outpace premium increases, margins could compress further in FY2026.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockUNH's FY2025 10-K showed revenue growing 11.8% to $447.6B, but operating income plunged 41.3% to $19.0B and net income fell 16.3% to $12.1B, driven by surging medical costs and SG&A expenses. Operating margin compressed from 8.1% to just 4.2%, marking a significant deterioration in profitability despite strong top-line growth. The results highlight a severe medical cost ratio problem that overshadowed the company's scale advantages.
UNH's profits fell because operating costs — particularly SG&A expenses (which include medical costs) rising 12.4% to $59.6B — grew faster than revenue, compressing operating income by 41.3% to $19.0B. This pattern is consistent with elevated medical utilization trends seen across the managed care industry, particularly in Medicare Advantage. Net income declined 16.3% to $12.1B as a result.
UnitedHealth's diluted EPS fell 14.7% YoY to $13.23 from $15.51 in FY2024, reflecting the decline in net income. The company reduced share buybacks by 38.4% to $5.5B (from $9.0B in FY2024), suggesting management is conserving capital amid profitability pressures, which also reduced the EPS support that buybacks typically provide.
UNH's financial health shows some stress: the current ratio is 0.79 (below 1.0), operating cash flow declined 18.6% to $19.7B, and long-term debt remains elevated at $72.3B. However, the company still generated nearly $19.7B in operating cash flow and holds $24.4B in cash, providing meaningful liquidity. The key concern is whether medical cost trends stabilize, as further margin compression would put additional pressure on cash generation and debt servicing capacity.
UnitedHealth's revenue grew 11.8% YoY to $447.6B in FY2025, up from $400.3B in FY2024, driven by membership growth and premium increases across its health insurance and Optum segments. Despite this strong top-line performance, the revenue growth was insufficient to offset the 12.4% surge in SG&A expenses and elevated medical costs, resulting in a sharp decline in profitability.
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