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Mar 31, 2025
UnitedHealth Q1 2025 Earnings Report
UnitedHealth Group reported higher revenue and earnings in Q1 2025 but acknowledged operational challenges impacting Medicare-related businesses.
Key Takeaways
UnitedHealth Group delivered solid revenue and adjusted EPS growth in Q1 2025. However, unexpected increases in Medicare Advantage care activity and reimbursement shifts weighed on performance, prompting downward revisions to full-year guidance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
UnitedHealth revised its full-year 2025 guidance down due to elevated Medicare Advantage care utilization and reimbursement dynamics, though management expressed confidence in addressing these challenges during the year.
Positive Outlook
- Strong growth in Optum Rx and contract backlog in Optum Insight
- EPS remains solid with Q1 adjusted EPS at $7.20
- Cash from operations at $5.5B reflects healthy fundamentals
- Technological efficiencies helped reduce the operating cost ratio
- Growth in total consumers served across UnitedHealthcare and Optum
Challenges Ahead
- Higher-than-expected care activity in Medicare Advantage impacted profitability
- Reimbursement assumptions missed due to member profile changes
- Ongoing impact from Medicare funding reductions
- Lower engagement in 2024 from plans exiting markets affected revenue
Historical Earnings Impact
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Avg. Return Before/After Earnings
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