UnitedHealth Group posted nearly $6.3 billion in net income during the first quarter of 2025, but the company reduced its year-end earnings outlook amid rising use of physician and outpatient services among its Medicare Advantage membership and “unanticipated changes in the profile of Optum Health members.”
UnitedHealth stock decreased 20% on the morning of April 17 following “an overall performance that was frankly unusual and unacceptable,” CEO Andrew Witty told investors. In its earnings report, the company also cited “a greater-than-expected impact to current and new complex patients from the ongoing Medicare funding reductions enacted by the previous administration.”
In January, UnitedHealth projected net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share. The company’s revised outlook is now $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share.
UnitedHealth Group
- Total revenues in Q1 were $109.6 billion, up 9.8% year over year.
- Total net income in Q1 was nearly $6.3 billion. The company posted a $1.4 billion net loss in the first quarter of 2024 following the sale of its Brazil operations and the cyberattack on Change Healthcare. Operating income in Q1 2025 was $9.1 billion. The company recorded a 5.7% net margin.
- The company’s medical loss ratio was 84.8% in Q1, compared to 84.3% the year prior. The full year medical loss ratio is expected to be 87.5%. Days claims payable were 45.5 in the first quarter compared to 47.1 a year ago.
UnitedHealthcare
- Total revenues in Q1 were $84.6 billion, up 12.3% year over year.
- Total earnings from operations in Q1 were $5.2billion. The operating margin in Q1 was 6.2%.
- Total domestic membership is 50.1 million. Commercial membership in Q1 is 30 million. There are nearly 7.6 million Medicaid members, 8.2 million Medicare Advantage members, and 4.3 million members with Medicare supplement plans. Medicare Part D membership is 2.8 million.
Optum
- Total revenues in Q1 were $63.9 billion, up 4.6% year over year.
- Total earnings from operations in Q1 were $3.9 billion. The operating margin in Q1 was 6.1%.
- Optum Health’s Q1 revenues were $25.3 billion. Optum Insights’s Q1 revenues were $4.5 billion. Optum Rx revenues in Q1 were $35.1 billion.
