🔹 Adj EPS: $7.20 (Est. $7.29) 🔴
🔹 Revenue: $109.6B (Est. $111.5B) 🔴; UP +9.8% YoY
🔹 Earnings from Operations: $9.1B; UP +15.2% YoY
🔹 Net Margin: 5.7% (Prev. -1.4% YoY)
🔹 Medical Care Ratio: 84.8% (Prev. 84.3% YoY)
🔹 Operating Cost Ratio: 12.4% (Prev. 14.1% YoY)
🔹 Days Claims Payable: 45.5 (Prev. 47.1 YoY)
🔹 Cash Flows from Operations: $5.5B
🔹 Returned nearly $5B to shareholders via dividends and share repurchases
🔹 Return on Equity: 26.8%
FY25 Guidance (Revised):
🔹 Adj EPS: $26.00–$26.50 (Prev. $29.50–$30.00) 🔴
Q1 Segment Performance:
UnitedHealthcare
🔹 Revenue: $84.6B; UP +$9.3B YoY
🔹 Operating Earnings: $5.2B (vs. $4.4B YoY)
🔹 Operating Margin: 6.2% (vs. 5.8% YoY)
🔹 Members Served (YTD): +780,000
🔹 Growth in Senior & Complex Care Members: +545,000 in Q1
🔹 Self-Funded Commercial Members: +700,000
🔹 Medicaid Membership: 7.6M
Optum
🔹 Revenue: $63.9B (Est. 67B)
🔹 Operating Earnings: $3.9B (vs. $3.5B YoY)
🔹 Operating Margin: 6.1% (vs. 5.8% YoY)
Optum Health
🔹 Revenue: $25.3B
🔹 Targeting +650,000 new value-based care patients in 2025
Optum Insight
🔹 Revenue: $4.6B
🔹 Backlog: $32.9B
🔹 Launched AI-powered claims tools with 20%+ productivity gains
Optum Rx
🔹 Revenue: $35.1B
🔹 Adjusted Scripts: 408M (vs. 395M YoY)
Company Commentary:
🔸 "Performance did not meet expectations; aggressively addressing challenges to return to long-term EPS growth target of 13–16%." – CEO Andrew Witty
🔸 Heightened care activity and changes in Medicare Advantage member profiles drove the downward revision in outlook
🔸 Still expects 650,000 new value-based care patients in Optum Health for FY25