UnitedHealth(US:UNH)2025-10-28 20:09Financial Performance - Consolidated revenues increased by 12% year-over-year, with UnitedHealthcare revenues growing by 16% and Optum revenues by 8%[64] - Consolidated earnings from operations were $4.3 billion, a decrease of 50% compared to $8.7 billion last year, impacted by elevated medical cost trends[64] - Net earnings attributable to UnitedHealth Group common shareholders decreased by 61% to $2.35 billion, with diluted earnings per share at $2.59[65] - For the three months ended September 30, 2025, consolidated revenues increased by 12% to $113,161 million compared to $100,820 million in the same period of 2024[72] - UnitedHealthcare revenues rose by 16% to $87,070 million for the three months ended September 30, 2025, up from $74,853 million in 2024[73] - Earnings from operations for UnitedHealthcare decreased by 57% to $1,805 million for the three months ended September 30, 2025, compared to $4,212 million in 2024[72] - The operating margin for consolidated operations decreased to 3.8% for the three months ended September 30, 2025, down from 8.6% in 2024[72] Medical Costs and Ratios - Medical costs rose by 21% year-over-year to $79.96 billion, significantly affecting overall profitability[65] - The medical care ratio increased to 89.9%, up from 85.2% in the previous year, indicating higher medical costs relative to premium revenue[65] - The Medicare Cost Ratio (MCR) increased due to revenue effects from Medicare funding reductions and elevated medical cost trends[68] Membership and Service Growth - UnitedHealthcare served 795,000 more people, primarily driven by growth in Medicare Advantage[64] - The number of people served by UnitedHealthcare increased to 50,125 thousand as of September 30, 2025, representing a 2% increase from 49,330 thousand in 2024[74] - Optum Health served approximately 96 million people as of September 30, 2025, down from 104 million in 2024[76] Cash Flow and Financial Position - Cash flows from operations for the nine months ended September 30, 2025, were $18.6 billion[64] - Cash provided by operating activities decreased to $18,589 million in 2025 from $21,835 million in 2024, a decline of $3,246 million[79] - Total sources of cash fell to $25,030 million in 2025, down $18,577 million from $43,607 million in 2024[79] - The company experienced a net increase in cash and cash equivalents of $1,898 million in 2025, compared to $6,973 million in 2024, a decrease of $5,075 million[79] - As of September 30, 2025, the company held $76.3 billion in cash, cash equivalents, and marketable securities, including $27.2 billion in cash and cash equivalents[81] Shareholder Returns and Dividends - Cash used for common stock repurchases increased to $5,545 million in 2025 from $4,028 million in 2024, an increase of $1,517 million[79] - The quarterly cash dividend was increased to an annual rate of $8.84 per share in June 2025, up from $8.40 per share[89] - The company’s domestic insurance and HMO subsidiaries paid dividends of $841 million to their parent companies during the nine months ended September 30, 2025[87] Regulatory and Legislative Impacts - The company anticipates continued pressure on Medicare Advantage funding due to regulatory changes and increased medical costs[62] - The Medicaid redetermination process is expected to lead to membership losses in 2026 due to legislative changes[58] - The Inflation Reduction Act has altered the Medicare Part D model, increasing premiums and medical costs, impacting overall financial performance[60] Credit Ratings and Securities - The company’s credit ratings as of September 30, 2025, included a senior unsecured debt rating of A2 from Moody's and A+ from S&P Global, both with a negative outlook[85] - The company’s available-for-sale debt securities portfolio had a weighted-average duration of 4.3 years and a weighted-average credit rating of "Double A" as of September 30, 2025[81]