UnitedHealth Group Reports $400.3 Billion Revenue, Net Earnings Decline by 36%

UnitedHealth Group Incorporated reported a consolidated revenue of $400.3 billion for the fiscal year ending December 31, 2024, marking an 8% increase from $371.6 billion in 2023. The company's profitability, however, faced challenges, with net earnings attributable to common shareholders declining by 36% to $14.4 billion, or $15.51 per diluted share, compared to $22.4 billion, or $23.86 per diluted share, in the previous year. This decline was primarily attributed to a significant loss of $8.3 billion related to the sale of its Brazil operations and the impact of a cyberattack on Change Healthcare, which resulted in increased medical costs and operational disruptions.

In terms of operational metrics, UnitedHealthcare served approximately 50.7 million individuals, a slight decrease from 52.8 million in 2023, largely due to Medicaid redeterminations. The company reported a medical care ratio of 85.5%, up from 83.2% in 2023, reflecting increased medical costs associated with a higher volume of services and the impact of the cyberattack. The Optum segment, which includes Optum Health, Optum Insight, and Optum Rx, saw revenue growth of 12%, driven by increased demand for pharmacy care services and value-based care arrangements.

Strategically, UnitedHealth Group has been active in refining its business portfolio, including the sale of its Brazil operations, which resulted in a loss of $7.1 billion. The company has also initiated plans to sell its remaining South American operations, with total anticipated capital required for these acquisitions estimated at approximately $4 billion. Additionally, the company increased its quarterly cash dividend to an annual rate of $8.40 per share, up from $7.52, reflecting its commitment to returning value to shareholders despite the operational challenges faced.

Looking ahead, UnitedHealth Group anticipates continued growth in the health care sector, driven by demographic trends and advancements in medical technology. However, the company also faces regulatory pressures, particularly in the Medicare Advantage program, where funding rates have been under scrutiny. The company plans to focus on enhancing its value-based care offerings and integrating its services to improve patient outcomes while managing costs effectively. The outlook remains cautious, with expectations of ongoing challenges related to medical cost trends and regulatory changes impacting profitability.