Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
UNH posted Q1 FY2026 revenue of $111.7B (+2.0% YoY) with broadly stable net income of $6.3B, but operating margin compressed to 8.0% amid a 13.2% surge in SG&A expenses, while operating cash flow surged 63.3% to $8.9B.
Revenue
$111.72B
+1.96% YoY
EPS (Diluted)
$6.90
+0.73% YoY
Operating Income
$8.99B
-1.41% YoY
Source: SEC XBRL
Unitedhealth Group (UNH) reported Q1 FY2026 revenue of $111.72B, up 2.0% year over year. Operating margin was 8.0%, down 0.3 points from 8.3% a year earlier. Operating cash flow was $8.91B, up 63.3% year over year. UNH's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 6.38 | 4.95 | Beat +28.8% |
| Mar 2026This filing | 7.23 | 6.64 | Beat +8.9% |
| Dec 2025 | 2.11 | 2.12 | Miss -0.6% |
| Sep 2025 | 2.92 | 2.82 | Beat +3.5% |
Adjusted (non-GAAP) EPS of $7.23 versus the $6.64 analyst consensus — a +8.9% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $6.90.
Compiled by AI from this SEC filing
Total revenue grew 2.0% YoY to $111.7B in Q1 FY2026, up from $109.6B in the prior-year period, reflecting continued membership and premium growth across UnitedHealth's diversified health services platform.
Source: 10-Q Income Statement
SG&A expenses jumped 13.2% YoY to $15.4B (from $13.6B), significantly outpacing revenue growth and contributing to a 27-basis-point compression in operating margin to 8.05%, signaling rising administrative and operational cost burdens.
Source: 10-Q Income Statement
Operating income fell 1.4% YoY to $9.0B from $9.1B, as cost pressures from both cost of revenue (+3.5%) and SG&A (+13.2%) more than offset top-line gains, squeezing profitability.
Source: 10-Q Income Statement
Operating cash flow improved dramatically by 63.3% YoY to $8.9B from $5.5B, suggesting strong cash conversion and working capital improvements even as reported earnings were essentially flat.
Source: 10-Q Cash Flow Statement
UNH repurchased $0 in shares during Q1 FY2026, compared to $3.0B in buybacks in the prior-year quarter, representing a 100% YoY decline and indicating a more conservative capital allocation posture.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
SG&A expenses rose 13.2% YoY to $15.4B, far exceeding the 2.0% revenue growth rate. If this cost trajectory continues, it could materially erode operating margins, which have already compressed to 8.05% from 8.32% a year ago. Sustained cost inflation without corresponding revenue acceleration poses a meaningful profitability risk.
Source: 10-Q Income Statement
UNH's current ratio stands at 0.80, meaning current liabilities of $114.1B exceed current assets of $91.1B. Cash and equivalents declined 8.8% YoY to $28.0B. While common in managed care due to claims payable structures, this warrants monitoring if operating cash flows were to deteriorate.
Source: 10-Q Balance Sheet
UNH halted share repurchases entirely in Q1 FY2026 after spending $3.0B on buybacks in Q1 FY2025. This shift in capital allocation may reflect balance sheet caution, regulatory scrutiny, or strategic redeployment of capital, and could signal management's concern about near-term financial flexibility.
Source: 10-Q Cash Flow Statement
Long-term debt stands at $71.4B, essentially flat YoY but at an elevated absolute level. Combined with total liabilities of $207.3B against total assets of $312.6B, the company carries significant leverage that could become burdensome if interest rates remain elevated or earnings deteriorate.
Source: 10-Q Balance Sheet
Net income of $6.28B was nearly flat YoY (-0.2%) despite a 2.0% increase in revenue, indicating that cost pressures are fully absorbing incremental revenue gains. If cost inflation accelerates further, net income could decline in subsequent quarters.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 111.72 $B | 109.58 $B | +1.96% |
Cost of Revenue $B | 12.82 $B | 12.39 $B | +3.49% |
Operating Income $B | 8.99 $B | 9.12 $B | -1.41% |
Net Income $B | 6.28 $B | 6.29 $B | -0.19% |
EPS (Basic) $ | 6.92 $ | 6.90 $ | +0.29% |
EPS (Diluted) $ | 6.90 $ | 6.85 $ | +0.73% |
SG&A Expense $B | 15.39 $B | 13.59 $B | +13.21% |
Answers draw on this SEC filing and the data on this page
UnitedHealth Group's Q2 FY2026 net income jumped 61% despite flat revenue, propelled by a sharply lower medical care ratio and favorable reserve development, even as membership in government programs continued to shrink.
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.
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