"Operating income collapsed to $4.3 billion from $8.7 billion a year ago, a 51% decline that reflects the core challenge facing the health insurer. Elevated medical cost trends and Medicare funding reductions have pressured profitability despite solid top-line momentum. UnitedHealthcare, the core insurance segment, delivered $87.1 billion in revenue, up 16% year over year. Optum, the health services and technology division, generated $69.2 billion, up 8% year over year."
"Cash Generation Remains Solid Operating cash flow reached $5.9 billion in the quarter, providing a counterweight to earnings pressure. Management raised full-year 2025 adjusted earnings guidance to at least $16.25 per share, up from prior guidance. Net earnings guidance was raised to at least $14.90 per share. These guidance increases signal confidence that operational headwinds are stabilizing, even if they haven't fully reversed."
UnitedHealth reported adjusted EPS of $2.92 versus $2.82 estimated while revenue was $113.2 billion, about $1 billion below consensus. Operating income dropped to $4.3 billion from $8.7 billion a year ago, a 51% decline driven by elevated medical cost trends and Medicare funding reductions. UnitedHealthcare revenue rose 16% to $87.1 billion and Optum revenue rose 8% to $69.2 billion, producing 12% overall revenue growth. Operating cash flow reached $5.9 billion. Management raised full-year 2025 adjusted earnings guidance to at least $16.25 and net earnings guidance to at least $14.90 per share.
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