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UnitedHealth Q3 Earnings Beat on Rising Commercial Membership
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Key Takeaways
UnitedHealth's Q3 adjusted EPS of $2.92 topped estimates but declined 59.2% year over year.
Revenues rose 12% to $113.2B, led by domestic commercial membership and Optum Rx growth.
Higher medical and operating costs drove MCR to 89.9% and cut operating earnings by 50%.
UnitedHealth Group Incorporated (UNH - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $2.92, which beat the Zacks Consensus Estimate of $2.75. However, the bottom line declined 59.2% year over year.
Revenues rose 12% year over year to $113.2 billion. The top line missed the consensus mark by 0.2%.
The quarterly earnings were aided by growth in domestic commercial membership and strength witnessed in Optum Rx. However, elevated medical costs partially offset the positives.
UnitedHealth Group Incorporated Price, Consensus and EPS Surprise
UnitedHealth’s third-quarter premium of $89 billion increased from $77.4 billion a year ago but missed the consensus mark by 0.2%.
UNH’s medical care ratio (MCR) was 89.9% in the third quarter, which deteriorated 470 bps from the year-ago period. The metric was lower than the Zacks Consensus Estimate of 90.9% and our estimate of 91.1%. MCR witnessed an increase due to the previously noted reductions in Medicare funding and medical cost trend, which exceeded the pricing trend. Medical costs of $80 billion rose from $66 billion a year ago.
Third-quarter total operating costs of $108.8 billion escalated 18.2% year over year due to higher medical costs, operating costs and the cost of products sold. The figure came higher than our model estimate of $108.7 billion. The third-quarter 2025 operating cost ratio deteriorated to 13.5% from 13.2% in 2024 due to investments.
UnitedHealth’s operating earnings declined 50% year over year to $4.3 billion in the third quarter. The net margin deteriorated 390 bps to 2.1% from the year-ago period.
Performance of UNH’s Business Platforms
Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, advanced 16% year over year to $87.1 billion in the third quarter due to an increase in domestic commercial membership growth. The metric beat the Zacks Consensus Estimate of $87 billion.
Earnings from operations amounted to $1.8 billion, down from $4.2 billion a year ago. The operating margin decreased 350 bps year over year to 2.1%.
Revenues in the Optum business line were $69.2 billion, which rose 8% year over year due to strong contributions from Optum Rx. The figure surpassed the consensus mark of $67.7 billion.
Optum’s earnings from operations declined to $2.5 billion from $4.5 billion a year ago. The operating margin of 3.6% decreased 340 bps year over year.
UnitedHealth’s Medical Membership
The UnitedHealthcare business catered to 50.1 million people as of Sept. 30, 2025, which grew 1.6% year over year due to its self-funded commercial benefits. However, the figure missed the Zacks Consensus Estimate and our estimate of 50.3 million.
UNH’s Financial Position (As of Sept. 30, 2025)
UnitedHealth exited the third quarter with cash and short-term investments of $30.6 billion, which rose from the 2024-end level of $29.1 billion.
Total assets of $315.3 billion increased from the $298.3 billion figure at 2024-end.
Long-term debt, less of current maturities, amounted to $72.4 billion, up 0.1% from the figure as of Dec. 31, 2024. Short-term borrowings and the current portion of long-term debt were $7.7 billion.
Total equity of $101.6 billion advanced from the 2024-end level of $98.3 billion.
UnitedHealth generated operating cash flows of $18.6 billion in the first nine months of 2025, which declined from the prior-year figure of $21.8 billion.
UNH’s 2025 Outlook
Management now projects adjusted net EPS to be at least $16.25 for 2025, up from the previous guided figure of $16 compared with the 2024 figure of $27.66. Net earnings are now expected to be at least $14.9 billion, up from the 2024 level of $14.4 billion.
Revenues were earlier projected between $445.5 billion and $448 billion in 2025, up from $400.3 billion in 2024. Operating cash flows were estimated to be $16 billion, down from $24.2 billion in 2024.
UNH’s Zacks Rank
UNH currently carries a Zacks Rank #3 (Hold).
Stocks to Report Earnings
Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.
ANI Pharmaceuticals, Inc. (ANIP - Free Report) carries a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s bottom line for the to-be-reported quarter is pegged at $1.74 per share, indicating 29.9% year-over-year growth. ANI Pharmaceuticals’ earnings beat estimates in each of the past four quarters, with an average surprise of 22.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Encompass Health Corporation (EHC - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for EHC’s bottom line for the to-be-reported quarter is pegged at $1.19 per share, indicating 15.5% year-over-year growth. Encompass Health’s earnings beat estimates in each of the past four quarters, with an average surprise of 14%.
The Cigna Group (CI - Free Report) currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CI’s bottom line for the to-be-reported quarter of $7.70 per share indicates 2.5% year-over-year growth. It remained stable over the past week. Cigna Group’s earnings beat estimates in three of the last four quarters and missed once.
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UnitedHealth Q3 Earnings Beat on Rising Commercial Membership
Key Takeaways
UnitedHealth Group Incorporated (UNH - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $2.92, which beat the Zacks Consensus Estimate of $2.75. However, the bottom line declined 59.2% year over year.
Revenues rose 12% year over year to $113.2 billion. The top line missed the consensus mark by 0.2%.
The quarterly earnings were aided by growth in domestic commercial membership and strength witnessed in Optum Rx. However, elevated medical costs partially offset the positives.
UnitedHealth Group Incorporated Price, Consensus and EPS Surprise
UnitedHealth Group Incorporated price-consensus-eps-surprise-chart | UnitedHealth Group Incorporated Quote
Business Performance of UNH
UnitedHealth’s third-quarter premium of $89 billion increased from $77.4 billion a year ago but missed the consensus mark by 0.2%.
UNH’s medical care ratio (MCR) was 89.9% in the third quarter, which deteriorated 470 bps from the year-ago period. The metric was lower than the Zacks Consensus Estimate of 90.9% and our estimate of 91.1%. MCR witnessed an increase due to the previously noted reductions in Medicare funding and medical cost trend, which exceeded the pricing trend. Medical costs of $80 billion rose from $66 billion a year ago.
Third-quarter total operating costs of $108.8 billion escalated 18.2% year over year due to higher medical costs, operating costs and the cost of products sold. The figure came higher than our model estimate of $108.7 billion. The third-quarter 2025 operating cost ratio deteriorated to 13.5% from 13.2% in 2024 due to investments.
UnitedHealth’s operating earnings declined 50% year over year to $4.3 billion in the third quarter. The net margin deteriorated 390 bps to 2.1% from the year-ago period.
Performance of UNH’s Business Platforms
Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, advanced 16% year over year to $87.1 billion in the third quarter due to an increase in domestic commercial membership growth. The metric beat the Zacks Consensus Estimate of $87 billion.
Earnings from operations amounted to $1.8 billion, down from $4.2 billion a year ago. The operating margin decreased 350 bps year over year to 2.1%.
Revenues in the Optum business line were $69.2 billion, which rose 8% year over year due to strong contributions from Optum Rx. The figure surpassed the consensus mark of $67.7 billion.
Optum’s earnings from operations declined to $2.5 billion from $4.5 billion a year ago. The operating margin of 3.6% decreased 340 bps year over year.
UnitedHealth’s Medical Membership
The UnitedHealthcare business catered to 50.1 million people as of Sept. 30, 2025, which grew 1.6% year over year due to its self-funded commercial benefits. However, the figure missed the Zacks Consensus Estimate and our estimate of 50.3 million.
UNH’s Financial Position (As of Sept. 30, 2025)
UnitedHealth exited the third quarter with cash and short-term investments of $30.6 billion, which rose from the 2024-end level of $29.1 billion.
Total assets of $315.3 billion increased from the $298.3 billion figure at 2024-end.
Long-term debt, less of current maturities, amounted to $72.4 billion, up 0.1% from the figure as of Dec. 31, 2024. Short-term borrowings and the current portion of long-term debt were $7.7 billion.
Total equity of $101.6 billion advanced from the 2024-end level of $98.3 billion.
UnitedHealth generated operating cash flows of $18.6 billion in the first nine months of 2025, which declined from the prior-year figure of $21.8 billion.
UNH’s 2025 Outlook
Management now projects adjusted net EPS to be at least $16.25 for 2025, up from the previous guided figure of $16 compared with the 2024 figure of $27.66. Net earnings are now expected to be at least $14.9 billion, up from the 2024 level of $14.4 billion.
Revenues were earlier projected between $445.5 billion and $448 billion in 2025, up from $400.3 billion in 2024. Operating cash flows were estimated to be $16 billion, down from $24.2 billion in 2024.
UNH’s Zacks Rank
UNH currently carries a Zacks Rank #3 (Hold).
Stocks to Report Earnings
Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.
ANI Pharmaceuticals, Inc. (ANIP - Free Report) carries a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s bottom line for the to-be-reported quarter is pegged at $1.74 per share, indicating 29.9% year-over-year growth. ANI Pharmaceuticals’ earnings beat estimates in each of the past four quarters, with an average surprise of 22.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Encompass Health Corporation (EHC - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for EHC’s bottom line for the to-be-reported quarter is pegged at $1.19 per share, indicating 15.5% year-over-year growth. Encompass Health’s earnings beat estimates in each of the past four quarters, with an average surprise of 14%.
The Cigna Group (CI - Free Report) currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CI’s bottom line for the to-be-reported quarter of $7.70 per share indicates 2.5% year-over-year growth. It remained stable over the past week. Cigna Group’s earnings beat estimates in three of the last four quarters and missed once.