UnitedHealth(UNH) - 2025 Q4 - Annual Results

Financial Performance - Consolidated revenues for 2025 were $447.6 billion, representing a 12% growth year-over-year[5] - UnitedHealthcare served 49.8 million consumers in 2025, with revenues increasing 16% to $344.9 billion[7] - Optum expanded revenues by 7% to $270.6 billion, supporting over 123 million consumers across its businesses[7] - The 2026 revenue outlook is set for more than $439.0 billion, with earnings from operations expected to exceed $24.0 billion[5] - Total revenues for the year ended December 31, 2025, reached $447.567 billion, a 11.8% increase from $400.278 billion in 2024[68] - UnitedHealthcare's total revenues for Q4 2025 reached $79,228 million, a 1.37% increase from $78,156 million in Q4 2024[79] - Consolidated revenues for the three months ended December 31, 2025, were $113,215 million, an increase from $100,807 million in the same period of 2024, representing a growth of 11.0%[106] - Adjusted consolidated revenues for the year ended December 31, 2025, reached $448,086 million, compared to $400,498 million in 2024, marking a 11.9% increase[106] Earnings and Profitability - The adjusted medical care ratio for 2025 was 88.9%, reflecting a 340 basis point increase year-over-year[8] - The 2026 earnings outlook is projected to be greater than $17.10 per share, with adjusted earnings expected to exceed $17.75 per share[36] - Net earnings per share for UnitedHealth Group is expected to be greater than $17.10, with adjusted earnings per share projected to exceed $17.75[44] - Adjusted earnings per share for the year ended December 31, 2025, were $16.35, compared to $27.66 in 2024, reflecting a decline of 40.9%[68] - Adjusted net earnings attributable to UnitedHealth Group common shareholders for the three months ended December 31, 2025, was $1,924 million, compared to $6,311 million for the same period in 2024[98] - The adjusted net margin attributable to UnitedHealth Group common shareholders for the year ended December 31, 2025, was 3.1%, compared to 6.1% in 2024[101] Costs and Expenses - Cash flows from operations for 2025 were $19.7 billion, or 1.5 times net income[14] - The company completed a fourth quarter charge of $1.6 billion net of taxes, impacting earnings by $1.78 per share[9] - Medical costs for the year ended December 31, 2025, totaled $313.995 billion, an increase of 18.9% from $264.185 billion in 2024[68] - Operating costs for the year ended December 31, 2025, were $428.603 billion, up from $367.991 billion in 2024, marking a 16.4% increase[68] - Cash flows from operating activities for the year ended December 31, 2025, were $19.697 billion, down from $24.204 billion in 2024, a decrease of 18.6%[74] - Operating costs for the three months ended December 31, 2025, were $16,997 million, up from $12,494 million in 2024, reflecting a rise of 36.5%[106] - Adjusted operating costs for the year ended December 31, 2025, totaled $57,981 million, compared to $51,748 million in 2024, indicating an increase of 11.0%[106] Membership and Consumer Reach - UnitedHealthcare's membership is expected to range between 46.9 million to 47.5 million, indicating a decrease in consumers served[43] - Optum Health is expected to serve approximately 84 million consumers, with fully accountable patients around 4.1 million[52] - The total number of people served by UnitedHealthcare reached 49,760 thousand as of December 31, 2025, compared to 49,345 thousand a year earlier, reflecting a growth in customer base[86] - The number of Medicare Advantage members increased to 8,445 thousand in Q4 2025, up from 7,845 thousand in Q4 2024, indicating growth in this segment[86] - Optum Health served 95 million consumers as of December 31, 2025, down from 100 million a year earlier, indicating a decline in service reach[88] Future Outlook and Strategic Initiatives - UnitedHealth Group plans to continue embracing new technologies and artificial intelligence to enhance care accessibility and affordability[38] - The operating cost ratio for 2026 is expected to be 12.8% +/- 50 basis points, reflecting disciplined cost management[37] - The medical care ratio is estimated at 88.8% ± 50 basis points, while the operating cost ratio is projected at 12.8% ± 50 basis points[44] - Optum's revenue is anticipated to surpass $257.5 billion, with operating earnings expected to exceed $13.2 billion, resulting in an operating margin of around 5.1%[52] - Total UnitedHealth Group revenue is expected to exceed $439 billion, with total operating earnings projected to be greater than $24 billion[41] Challenges and Risks - The company reported a loss of $442 million from net portfolio divestitures and South American impacts for the year ended December 31, 2025[98] - Direct response costs related to a cyberattack amounted to $799 million for the year ended December 31, 2025, impacting overall financial performance[82] - The contract backlog for Optum Insight was $31.1 billion as of December 31, 2025, a decrease from $32.8 billion in the previous year, suggesting potential future revenue challenges[88] - Restructuring and other costs included $2,521 million for the year ended December 31, 2025, primarily due to real estate rationalization and workforce reductions[95]