UnitedHealth Boosts 2025 EPS Forecast to Minimum $16.25

UnitedHealth Group has raised its earnings forecast for 2025, projecting adjusted earnings per share (EPS) of at least $16.25. This announcement follows their strong third-quarter performance in 2025.

Third Quarter 2025 Highlights

UnitedHealth Group reported revenues of $113.2 billion for the third quarter, marking a 12% increase year-over-year. The earnings from operations dropped to $4.3 billion, with an adjusted EPS of $2.92 and a GAAP EPS of $2.59. Cash flows from operations reached $5.9 billion, illustrating strong operational efficiency at 2.3 times net income.

Key Financial Metrics

• Consolidated Revenues: $113.2 billion, up 12% from $100.8 billion.
• Earnings from Operations: $4.3 billion, down from $8.7 billion year-over-year.
• Net Margin: 2.1%, a decrease from 6.0% the previous year.
• Adjusted EPS: $2.92 vs. $7.15 in Q3 2024.
• GAAP EPS: $2.59 compared to $6.51 in Q3 2024.

The company’s medical care ratio (MCR) stood at 89.9%, meeting projections from the previous quarter. Additionally, the operating cost ratio was recorded at 13.5%, up slightly from the prior year’s 13.2%.

Business Segment Performance

• UnitedHealthcare: Revenues increased 16% year-over-year to $87.1 billion, serving 50.1 million consumers, an increase of 795,000 from 2024.
• Optum: Revenues rose 8% to $69.2 billion, mainly driven by significant growth in Optum Rx.

Market Challenges

Despite these achievements, UnitedHealth faced challenges, including elevated medical cost trends and the impact of Medicare funding reductions under the current administration. The overall operating margin for the third quarter fell to 3.8% from 8.6% year-over-year.

Future Outlook

Looking ahead, UnitedHealth’s CEO Stephen Hemsley emphasized the company’s commitment to robust growth. With the revised EPS projection for 2025 set at a minimum of $16.25, the company looks to position itself strategically for continued expansion into 2026 and beyond.

Investor Communication

UnitedHealth Group is set to discuss its quarterly results and future strategies during an earnings call scheduled for 8:00 a.m. Eastern Time. Investors can access the live webcast through the Emegypt Investor Relations page.

For more details about the company’s operations and financial results, visit Emegypt at www.emegypt.com.