UnitedHealth Group (NYSE:UNH) delivered a stronger-than-expected profit for the fourth quarter, while reaffirming its 2025 financial outlook. This marks the company’s first earnings release following the tragic loss of executive Brian Thompson last month, an event that has drawn public attention to the broader challenges in healthcare affordability and accessibility.
In the wake of the incident, UnitedHealth has faced criticism from Americans struggling with medical costs and care availability. Although not directly addressing the controversy, CEO Andrew Witty emphasized the company’s commitment to expanding access to quality, affordable healthcare and simplifying the system for both patients and providers. He reiterated that UnitedHealth is well-positioned for growth in the year ahead.
The company maintained its guidance for 2025, projecting revenues between $450 billion and $455 billion, net earnings of $28.15 to $28.65 per share, adjusted earnings of $29.50 to $30 per share, and operating cash flow ranging from $32 billion to $33 billion.
For the fourth quarter, UnitedHealth reported a 6.8% increase in revenue to $100.81 billion, slightly below expectations. However, adjusted earnings per share of $6.81 surpassed analysts’ forecasts of $6.71, reflecting resilient profitability despite external pressures.
The health insurer, like its industry peers, has grappled with higher costs, particularly in Medicare plans catering to older adults and individuals with disabilities. This increase is attributed to a surge in medical treatments that were delayed during the COVID-19 pandemic.
UnitedHealth’s medical care ratio—a measure of the percentage of premiums spent on medical claims—rose to 85.5% for the full year, up from 83.2% in 2023. This uptick, driven by Medicare funding reductions and member mix, signals narrower margins for the insurer.