AI Takeaway
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 that compressed operating margin to just 4.2% from 8.1% the prior year.
Revenue
$447.57B
++11.81% YoY
EPS (Basic)
$13.28
-15.09% YoY
Operating Income
$18.96B
-41.26% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 11.8% YoY to $447.6B in FY2025, up from $400.3B in FY2024, demonstrating continued top-line expansion across UnitedHealth's diversified health services and insurance segments.
Source: Source: 10-K Income Statement
Operating income plunged 41.3% to $19.0B from $32.3B, with operating margin contracting sharply from 8.1% to 4.2%, signaling that cost growth significantly outpaced revenue growth during the year.
Source: Source: 10-K Income Statement
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, collectively squeezing profitability across the business.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockThe dramatic 41.3% decline in operating income despite 11.8% revenue growth strongly suggests a significant increase in medical loss ratios or claims costs. If medical utilization trends continue to exceed pricing assumptions, profitability could remain under sustained pressure.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $2.11 versus the $2.12 analyst consensus — a -0.6% miss for FY2025.
| 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 | — | — |
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UNH's FY2025 results showed a stark divergence between revenue growth and profitability: revenue rose 11.8% to $447.6B, but operating income collapsed 41.3% to $19.0B and net income fell 16.3% to $12.1B. The primary driver appears to be a significant increase in costs, with operating margin compressing from 8.1% to just 4.2%, suggesting elevated medical claims or utilization trends overwhelmed the company's pricing.
Despite growing revenue by $47.3B to $447.6B, UNH's operating income fell by $13.3B to $19.0B because SG&A expenses surged 12.4% to $59.6B and total operating costs grew faster than revenue. This cost-revenue mismatch, likely driven by higher-than-expected medical utilization and claims, caused operating margin to nearly halve from 8.1% to 4.2%.
UNH's diluted EPS declined 14.7% to $13.23 in FY2025, down from $15.51 in FY2024, reflecting the significant drop in net income from $14.4B to $12.1B. The company also reduced share buybacks by 38.4% to $5.5B, providing less EPS support from share count reduction than in the prior year.
UNH's liquidity position shows some stress, with a current ratio of only 0.79 as current liabilities of $114.9B exceed current assets of $90.6B, and cash declined 3.7% to $24.4B. Operating cash flow also fell 18.6% to $19.7B, though the company maintains $72.3B in long-term debt and total assets of $309.6B, suggesting it remains a large and financially significant enterprise despite near-term pressures.
The filing data does not include analyst consensus estimates, so a direct beat/miss comparison cannot be made from this 10-K alone. However, the 16.3% decline in net income to $12.1B and the 41.3% collapse in operating income represent a dramatic deterioration from FY2024 results, which would likely have been below most analyst expectations given the magnitude of the margin compression.