UnitedHealth Group Inc.
UNHFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$111.7B
Q1 2026 · +1.9% YoY
TTM ROIC
7.1%
FY2025 · NOPAT / Invested Capital (NOPAT = Operating Income × (1 - tax rate); Invested Capital = Total Assets - Non-interest-bearing Current Liabilities - Cash) · WACC ~9.5% · Moat spread +-2.4pp
Financial Snapshot
ticker: UNH step: 04 generated: 2026-05-11 source: quick-research
UnitedHealth Group Incorporated (UNH) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $371.6B | $400.3B | $448.0B | +12% |
| Adjusted Operating Margin | 8.8% | 5.2% | 2.7% | -2.5pp |
| Net Income | $22.4B | $14.4B | $12.1B | -16% |
| Adjusted EPS | $25.12 | $27.66 | $26.50 | -4% |
| Medical Loss Ratio | 83.2% | 85.5% | 88.9% | +3.4pp |
Segment Revenue (FY2025 approximate)
| Segment | Revenue | YoY |
|---|---|---|
| UnitedHealthcare | ~$300B | +13% |
| Optum Rx | ~$130B | +12% |
| Optum Health | ~$110B | -2% (under pressure) |
| Optum Insight | ~$20B | +5% |
| Inter-segment eliminations | ($112B) |
Membership (FY2025)
| Segment | Members |
|---|---|
| Total US Medical | ~50M |
| Medicare Advantage | ~7.8M (+755K growth in 2025 including dual-eligible) |
| Commercial Risk + Fee | ~26M |
| Medicaid | ~7M |
| Optum Rx PBM | ~60M+ |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Cash Flow from Operations | ~$24B (sharply down from $29.7B in 2024) |
| Capital Expenditures | ~($3.5B) |
| Free Cash Flow | ~$20B |
| Cash & Investments | ~$130B (mostly held to back insurance liabilities) |
| Total Debt | ~$80B |
| Stockholders' Equity | ~$96B |
Key Ratios (approximate, May 2026)
- P/E (forward): ~13x | EV/EBITDA: ~10x | Dividend Yield: ~2.9%
- ROE: ~13% (down from 22%+ pre-pressure) | ROIC: ~10%
- Debt/Capital: ~45%
Growth Profile
2025 was the most challenging year in UNH's modern history. Revenue grew 12% but profits fell to $12.1B (lowest since 2018), and operating margin collapsed from 5.2% → 2.7% under three pressures: (1) CMS Medicare Advantage funding cuts under V28 risk model, (2) Inflation Reduction Act drug pricing changes, and (3) elevated medical cost trend across Medicare cohorts. Management's 2026 outlook is for revenue >$439B (~2% decline) — the first revenue decline in a decade. Triggered a ~20% single-day plunge in January 2026.
Forward Estimates
- 2026E Revenue: ~$439-445B (UNH guidance: revenue decline first time in a decade)
- 2026E EPS: ~$22-24 (consensus, materially below 2024 peak of $27.66)
- 2027E EPS: ~$26-28 (consensus, with recovery assumed if Medicare reset stabilizes)
- Medical Cost Trend: Management modeling continued elevated trend
Capital Return
- Dividend
$8/share annual ($7.3B), grown each of last 15+ years - Buybacks moderated in 2025/26 to preserve capital amid investigation overhang
- Insider buying: Notable Hemsley + other executive open-market purchases following stock decline
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $UNH.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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