Unitedhealth | 8-K: FY2025 Revenue Misses Estimate at USD 447.57 B

Revenue: As of FY2025, the actual value is USD 447.57 B, missing the estimate of USD 447.99 B.EPS: As of FY2025, the actual value is USD 13.23, missing the estimate of USD 14.9322.EBIT: As of FY2025, the actual value is USD 18.7 B.Consolidated Financial Performance (Year Ended December 31, 2025)Revenues: $447.6 billion, representing 12% growth year-over-year compared to $400.3 billion in 2024. Consolidated revenues for 2025 were $447.6 billion, representing 12% growth year-over-year .Earnings from Operations: $19.0 billion, compared to $32.3 billion in 2024. This included a $2.8 billion charge . Earnings from operations were $19.0 billion .Adjusted Earnings from Operations: $21.7 billion, compared to $34.4 billion in 2024 .Net Margin: 2.7%, compared to 3.6% in 2024 . Net margin was 2.7% .Net Earnings Attributable to UnitedHealth Group Common Shareholders: $12,056 million, compared to $14,405 million in 2024 . Net Earnings Attributable to 联合健康 (UnitedHealth Group) Common Shareholders were $12,056 million .Cash Flows from Operations: $19.7 billion, or 1.5 times net income, higher than anticipated due to timing of cash flows . Cash flows from operations were $19.7 billion, or 1.5 times net income . Cash flows from operations for the full year were higher than anticipated, largely due to the timing of cash flows, including payments received in 2025 that were expected in 2026 .Medical Care Ratio (Reported): 89.1% . The reported medical care ratio was 89.1% . This included a 20 basis point negative impact from loss contracts included in a charge, resulting in an adjusted medical care ratio of 88.9% .Adjusted Medical Care Ratio: 88.9%, an increase of 340 basis points year-over-year compared to 85.5% in 2024 . The full year 2025 adjusted medical care ratio of 88.9% compared to 85.5% in 2024 . The year-over-year increase reflects previously disclosed factors, CMS’s Medicare funding reductions and changes from the Inflation Reduction Act combined with accelerating medical cost trends .Operating Cost Ratio (Reported): 13.3% . The operating cost ratio of 13.3% included a negative 40 basis points impact from a one-time charge .Adjusted Operating Cost Ratio: 12.9%, which was flat year-over-year compared to 12.9% in 2024 . The adjusted operating cost ratio was 12.9% . The full year 2025 adjusted operating cost ratio of 12.9% compared to 12.9% in 2024, reflecting operating efficiencies and investments to drive future growth .Medical Reserve Development: $140 million favorable for full year 2025 .Days Claims Payable: 44.1 days, compared to 47.0 at year-end 2024 .Days Sales Outstanding: 18.8 days, compared to 20.7 in the year-ago quarter .Debt-to-Capital Ratio: 43.9% as of December 31, 2025, consistent with 43.9% at year-end 2024 . The debt-to-capital ratio was 43.9% as of December 31, 2025, compared to 44.1% in the third quarter 2025 and 43.9% at year end 2024 . The company continues to target a long-term debt-to-capital ratio of 40.0% and expects to reach that level in 2026 .Fourth Quarter 2025 ChargeTotal Impact to Net Earnings: - $1,622 million .Components of the charge: Final Cyberattack Costs of - $799 million, Net Portfolio Divestitures of $442 million, and Restructuring and Other of - $2,521 million . The charge consisted of: Final Cyberattack Costs of - $799 million, Net Portfolio Divestitures of $442 million, Restructuring and Other of - $2,521 million, totaling - $2,878 million before Income Taxes, with Income Taxes of $1,256 million, resulting in a Total Impact to Net Earnings of - $1,622 million .Consolidated Financial Performance (Three Months Ended December 31, 2025)Total Revenues: $113,215 million .Earnings from Operations: $380 million .Net Earnings Attributable to 联合健康 (UnitedHealth Group) Common Shareholders: $10 million .Segment Performance (Year Ended December 31, 2025)UnitedHealthcareRevenues: $344.9 billion, an increase of $46.7 billion or 16% year-over-year compared to $298.2 billion in 2024 .Earnings from Operations: $9.4 billion, compared to $15.6 billion in 2024 .Adjusted Earnings from Operations: $9.6 billion, compared to $16.2 billion in 2024 .Operating Margin: 2.7%, compared to 5.2% in 2024 .Consumers Served: 49.8 million, an increase of 415,000 year-over-year . 49.8 million consumers in 2025, an increase of 415,000 year-over-year .UnitedHealthcare Employer & IndividualRevenues: $79.2 billion, compared to $78.2 billion in 2024 .People Served: Decreased by 80,000 year-over-year .UnitedHealthcare Medicare & RetirementRevenues: $171.3 billion, grew $31.8 billion or 23% year-over-year . $171.3 billion, grew $31.8 billion, or 23%, year-over-year .People Served Growth: Total growth for people served through Medicare Advantage was 755,000 . Total growth for people served through Medicare Advantage, including programs serving complex populations included in Medicaid, was 755,000 in 2025 .UnitedHealthcare Community & StateRevenues: $94.4 billion, grew 17% year-over-year .People Served: Contracted by 55,000 . Contracted by 55,000 in 2025 .OptumRevenues: $270.6 billion, an increase of 7% year-over-year compared to $253.0 billion in 2024 . $270.6 billion, expanded 7% .Earnings from Operations: $9.5 billion, compared to $16.7 billion in 2024 .Adjusted Earnings from Operations: $12.1 billion, compared to $18.2 billion in 2024 .Operating Margin: 3.5%, compared to 6.6% in 2024 .Consumers Supported: More than 123 million . More than 123 million consumers across its businesses .Optum HealthRevenues: $102.0 billion, down 3% year-over-year .Earnings from Operations: - $278 million, compared to $7.8 billion in 2024 .Adjusted Earnings from Operations: $2.3 billion, compared to $7.9 billion in 2024 . $2.3 billion in 2025, compared to $7.9 billion in 2024 .Consumers Served: 95 million .Optum InsightRevenues: $19.4 billion, up 4% or $660 million year-over-year . $19.4 billion, up 4%, or $660 million, year-over-year .Earnings from Operations: $2.6 billion, compared to $3.1 billion in 2024 .Adjusted Earnings from Operations: $3.7 billion, compared to $4.4 billion in 2024 . $3.7 billion in 2025, compared to $4.4 billion a year ago .Contract Backlog: $31.1 billion .Optum RxRevenues: $154.7 billion, increased 16% year-over-year .Earnings from Operations: $7.2 billion, compared to $5.8 billion in 2024 .Adjusted Earnings from Operations: $6.1 billion, compared to $5.8 billion in 2024 . $6.1 billion in 2025, compared to $5.8 billion a year ago .Adjusted Scripts (Full Year): 1.66 billion, up from 1.62 billion last year . Grew to 1.66 billion, up from 1.62 billion last year .Adjusted Scripts (Quarterly): 424 million .Cash Flow Statement (Year Ended December 31)Net Earnings: $12,807 million in 2025, compared to $15,242 million in 2024 .Depreciation and Amortization: $4,361 million in 2025, compared to $4,099 million in 2024 .Deferred Income Taxes and Other: - $989 million in 2025, compared to - $3,657 million in 2024 .Share-based Compensation: $971 million in 2025, compared to $1,018 million in 2024 .Loss on Sale of Subsidiary and Subsidiaries Held for Sale: $265 million in 2025, compared to $8,310 million in 2024 .Net Changes in Operating Assets and Liabilities: $2,282 million in 2025, compared to - $808 million in 2024 .Cash Flows from Operating Activities: $19,697 million in 2025, compared to $24,204 million in 2024 .Cash Flows Used for Investing Activities: - $8,685 million in 2025, compared to - $20,527 million in 2024 .Cash Flows Used for Financing Activities: - $11,644 million in 2025, compared to - $3,512 million in 2024 .Net Decrease in Cash and Cash Equivalents: - $947 million in 2025, compared to - $115 million in 2024 .Cash and Cash Equivalents, End of Period: $24,365 million in 2025, compared to $25,312 million in 2024 .Balance Sheet (as of December 31)Cash and Short-term Investments: $28,121 million in 2025, compared to $29,113 million in 2024 .Accounts Receivable, Net: $23,018 million in 2025, compared to $22,365 million in 2024 .Total Current Assets: $90,582 million in 2025, compared to $85,779 million in 2024 .Total Assets: $309,581 million in 2025, compared to $298,278 million in 2024 .Medical Costs Payable: $39,337 million in 2025, compared to $34,224 million in 2024 .Total Current Liabilities: $114,897 million in 2025, compared to $103,769 million in 2024 .Long-term Debt, Less Current Maturities: $72,320 million in 2025, compared to $72,359 million in 2024 .Equity: $100,090 million in 2025, compared to $98,268 million in 2024 .2026 Outlook and Guidance联合健康 (UnitedHealth Group) expects 2026 revenues to exceed $439.0 billion, reflecting a 2% year-over-year decline due to planned right-sizing . Earnings from operations are projected to be greater than $24.0 billion, with an operating margin of approximately 5.5% and a net margin of approximately 3.6% . Cash flows from operations are anticipated to be greater than $18.0 billion, and the company expects to reach its long-term debt-to-capital ratio target of 40.0% in 2026 .Key Performance Expectations for 2026:Consolidated Medical Care Ratio: Expected to be 88.8% +/- 50 basis points, an improvement of 30 basis points from the 2025 medical care ratio of 89.1% .Operating Cost Ratio: Expected to be 12.8% +/- 50 basis points, reflecting a 10 basis point improvement from the 2025 adjusted operating cost ratio .Segment Outlook for 2026:UnitedHealthcare Revenues: More than $335.0 billion, with operating earnings greater than $10.8 billion, reflecting a ~3.2% margin . UnitedHealthcare revenues are projected to be more than $335.0 billion, reflecting fewer consumers served, with membership expected to range between 46.9 million to 47.5 million . Operating earnings are projected to be greater than $10.8 billion, reflecting an approximate 3.2% margin .Optum Revenues: More than $257.5 billion, with operating earnings expected to be greater than $13.2 billion, or a margin of ~5.1% . Optum revenues are projected to be more than $257.5 billion, reflecting corresponding membership attrition in Optum Rx and strategic right-sizing of Optum Health . Operating earnings are expected to be greater than $13.2 billion, or a margin of approximately 5.1% compared to 2025 margin of 3.5% .Optum Health Revenues: Projected to be greater than $91.0 billion with an operating margin of approximately 2.4% .Optum Health Consumers Served: Approximately 84 million .Optum Health Fully Accountable Patients: More than 4.1 million .Optum Insight Revenues: Projected to be greater than $21.0 billion with an operating margin of approximately 22.6% .Optum Rx Revenues: Projected to be greater than $150.5 billion with an operating margin of approximately 4.2% .Optum Rx Adjusted Scripts: Greater than 1.52 billion .