UnitedHealth’s third quarter results were shaped by ongoing margin pressure and the company’s efforts to address underperformance in key segments. Management attributed the quarter’s operational challenges primarily to the lingering effects of medical cost trends, especially in Medicare Advantage and Medicaid, as well as ongoing investments to restructure underperforming businesses. CEO Stephen Hemsley acknowledged, “We’re getting at the core of the underperformance issues with fresh perspectives, intent on positioning our organization as a positive and innovative leader helping to advance next era of health care.” The company continues to focus on operational improvements and repricing initiatives to restore profitability.
Is now the time to buy UNH? Find out in our full research report (it’s free for active Edge members).
UnitedHealth (UNH) Q3 CY2025 Highlights:
- Revenue: $113.2 billion vs analyst estimates of $113.3 billion (12.2% year-on-year growth, in line)
- Adjusted EPS: $2.92 vs analyst estimates of $2.81 (4% beat)
- Adjusted EBITDA: $5.41 billion vs analyst estimates of $5.18 billion (4.8% margin, 4.6% beat)
- Management raised its full-year Adjusted EPS guidance to $16.25 at the midpoint, a 1.6% increase
- Operating Margin: 3.8%, down from 8.6% in the same quarter last year
- Customers: 54.08 million, similar to the previous quarter
- Market Capitalization: $302.4 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From UnitedHealth’s Q3 Earnings Call
-
Joshua Raskin (Nephron Research) asked about Optum Health’s revenue mix and margin trajectory. CEO Stephen Hemsley and Optum COO Krista Nelson explained the majority comes from value-based care, with lower margins in the near term but a commitment to 6–8% margins by 2028.
-
Albert Rice (UBS) inquired about Optum Insight’s competitive standing and investment plans. Optum Insight CEO Sandeep Dadlani described the push toward AI-first platforms and cited early success of new products like Optum Real and Integrity One.
-
Stephen Baxter (Wells Fargo) questioned the expected Medicare Advantage membership declines in 2026. Chief actuary Robert Hunter detailed the breakdown between plan exits and competitive pressures, emphasizing a disciplined focus on margin over volume.
-
George Hill (Deutsche Bank) asked about the increase in discretionary expenses and whether they are recurring. CFO Wayne DeVeydt clarified that a portion relates to multi-year foundation funding, while most investments in people and technology are ongoing.
-
Lisa Gill (JPMorgan) sought clarity on utilization trends and expectations for the remainder of the year. UnitedHealthcare CEO Timothy Noel said utilization was tracking in line with prior guidance, with seasonality and investment in Medicare enrollment activity as key factors.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will focus on (1) execution of repricing and benefit redesign to achieve sustained margin improvement, (2) progress in narrowing and integrating provider networks within Optum Health and returning that segment to growth, and (3) evidence that technology and AI investments are translating to operational efficiencies and client adoption. The pace of Medicaid margin recovery and outcomes from portfolio rationalization will also be important markers for long-term success.
UnitedHealth currently trades at $331.04, down from $366.02 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
