# UnitedHealth Group (UNH) Q2 2025 Financial Results Summary
On July 29, 2025, UnitedHealth Group (NYSE: UNH) reported its second quarter 2025 results along with an updated outlook for the year.
## Key Financial Highlights
– **Full Year 2025 Revenue Outlook**: $445.5 billion to $448.0 billion.
– **Full Year 2025 Earnings Outlook**:
– Net earnings of at least $14.65 per share.
– Adjusted earnings of at least $16.00 per share.
– **Second Quarter Earnings**:
– $3.74 per share.
– Adjusted earnings were $4.08 per share.
### Quarterly Performance
#### Revenue and Earnings
– **Quarterly Revenues**:
– Q2 2025: $111.6 billion (13% growth) compared to Q2 2024’s $98.9 billion.
– **Earnings from Operations**:
– Q2 2025: $5.2 billion, decreased from $7.9 billion in Q2 2024.
– **Net Margin**:
– Q2 2025: 3.1% (decreased from 4.3% year-over-year).
#### Adjusted Earnings
– Adjusted net earnings of $4.08 per share for Q2 2025, down from $6.80 in Q2 2024.
### Operational Insights
– The second quarter consolidated **medical care ratio** rose to **89.4%**, an increase of **430 basis points** year-over-year, reflecting higher medical cost trends than pricing trends.
– The **days claims payable** stood at **44.5** days, down from **45.2** days in Q2 2024 and **45.5** days in Q1 2025, driven by changes in the Medicare Part D program.
– The **operating cost ratio** decreased to **12.3%** from **13.3%** in the previous year.
– The **tax rate** for the full year is now expected to be around **18.5%**, influenced by revised earnings outlook.
### Shareholder Returns
– **Dividend Increase**: The company increased its quarterly dividend rate by **5%** to **$2.21**.
– **Share Repurchases**: Returned **$4.5 billion** to shareholders through dividends and share repurchases in Q2 2025.
### Segment Performance
#### UnitedHealthcare
– **Q2 2025 Revenue**: $86.1 billion, growing **17%** from $73.9 billion in Q2 2024.
– **Earnings from Operations**: $2.1 billion, decreased from $4.0 billion in Q2 2024.
– **Operating Margin**:
– Q2 2025: 2.4%, down from 5.4% a year earlier.
#### Optum
– **Q2 2025 Revenue**: $67.2 billion, up from $62.9 billion (an increase of around **7%**).
– **Earnings from Operations**: $3.1 billion, decreased from $3.9 billion in Q2 2024.
– **Operating Margin**: 4.6%, down from 6.2% year-over-year.
### Outlook
– The updated revenue and earnings expectations for 2025 reflect performance in the first half of the year and anticipated trends.
– Performance metrics:
– **Optum Health Revenues** expected to decline by **4%** from 2024, while **Optum Rx** revenues expected to rise significantly.
– The number of individuals served by UnitedHealthcare is projected to rise, particularly among seniors and those requiring complex care.
### Summary
UnitedHealth Group’s results for Q2 2025 demonstrate a notable growth in revenue but challenges in earnings and operational efficiencies. The company is adjusting its outlook for the rest of the year as it responds to market dynamics and operational challenges. The increase in dividend and significant shareholder returns remain positive indicators for investors.
### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data; unaudited)
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |
| Revenues | ||||
| Premiums | $87,905 | $76,897 | $174,439 | $154,885 |
| Products | $13,564 | $12,211 | $26,600 | $24,120 |
| Services | $9,039 | $8,750 | $18,011 | $17,638 |
| Investment and other income | $1,108 | $997 | $2,141 | $2,008 |
| Total revenues | $111,616 | $98,855 | $221,191 | $198,651 |
| Operating costs | ||||
| Medical costs | $78,585 | $65,458 | $151,996 | $131,193 |
| Operating costs | $13,778 | $13,162 | $27,372 | $27,239 |
| Cost of products sold | $13,019 | $11,340 | $25,409 | $22,396 |
| Depreciation and amortization | $1,084 | $1,020 | $2,145 | $2,017 |
| Total operating costs | $106,466 | $90,980 | $206,922 | $182,845 |
| Earnings from operations | $5,150 | $7,875 | $14,269 | $15,806 |
| Interest expense | -$1,027 | -$985 | -$2,025 | -$1,829 |
| Loss on sale of subsidiary and subsidiaries held for sale | -$41 | -$1,225 | -$56 | -$8,311 |
| Earnings before income taxes | $4,082 | $5,665 | $12,188 | $5,666 |
| Provision for income taxes | -$510 | -$1,244 | -$2,142 | -$2,466 |
| Net earnings | $3,572 | $4,421 | $10,046 | $3,200 |
| Earnings attributable to noncontrolling interests | -$166 | -$205 | -$348 | -$393 |
| Net earnings attributable to UnitedHealth Group common shareholders | $3,406 | $4,216 | $9,698 | $2,807 |
| Diluted earnings per share attributable to UnitedHealth Group common shareholders | $3.74 | $4.54 | $10.61 | $3.02 |
| Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a) | $4.08 | $6.80 | $11.29 | $13.71 |
| Diluted weighted-average common shares outstanding | 910 | 928 | 914 | 929 |
(a) See page 15 for a reconciliation of the non-GAAP measure.
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### CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions; unaudited)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Cash and short-term investments | $32,020 | $29,113 |
| Accounts receivable, net | $24,142 | $22,365 |
| Other current assets | $37,537 | $34,301 |
| Total current assets | $93,699 | $85,779 |
| Long-term investments | $52,466 | $52,354 |
| Other long-term assets | $162,408 | $160,145 |
| Total assets | $308,573 | $298,278 |
| Liabilities, redeemable noncontrolling interests and equity | ||
| Medical costs payable | $38,427 | $34,224 |
| Short-term borrowings and current maturities of long-term debt | $5,698 | $4,545 |
| Other current liabilities | $66,656 | $65,000 |
| Total current liabilities | $110,781 | $103,769 |
| Long-term debt, less current maturities | $73,495 | $72,359 |
| Other long-term liabilities | $19,513 | $19,559 |
| Redeemable noncontrolling interests | $4,315 | $4,323 |
| Equity | $100,469 | $98,268 |
| Total liabilities, redeemable noncontrolling interests and equity | $308,573 | $298,278 |
