UnitedHealth Group (UNH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $98.9 billion, up nearly $6 billion year-over-year, led by double-digit growth at Optum and UnitedHealthcare, with consolidated revenues up 6%.

• Net earnings attributable to shareholders fell 23% to $4.2 billion, impacted by the Change Healthcare cyberattack and losses on South American subsidiaries held for sale.

• The company served 2.3 million more domestic commercial members year-to-date, with growth partially offset by Medicaid redeterminations.

• The Change Healthcare cyberattack resulted in $1.4 billion in direct response costs and $613 million in business disruption impacts for the first half of 2024.

• Focus on reducing healthcare fragmentation, improving care coordination, and leveraging technology and innovation for efficiency and consumer experience.

Financial highlights

• Q2 2024 revenues: $98.9 billion, up from $92.9 billion in Q2 2023; UnitedHealthcare revenues reached $74 billion, Optum Health revenues grew 13% to $27 billion, and Optum Rx revenues rose 13% to over $32 billion.

• Q2 2024 net earnings attributable to shareholders: $4.2 billion, down from $5.5 billion year-over-year.

• Adjusted EPS was $6.80, including $0.28 per share in business disruption impacts; reported EPS was $4.54, reflecting South American operations held for sale and cyberattack impacts.

• Cash flows from operations for the first half of 2024 were $7.9 billion; Q2 cash flows from operations were $6.7 billion, or 1.5x net income.

• Dividend increased by 12% in June, marking the 15th consecutive year of double-digit increases.

Outlook and guidance

• Full-year adjusted EPS guidance reaffirmed at $27.50–$28.00, absorbing $0.60–$0.70 per share in business disruption impacts.

• Full-year 2024 net earnings outlook updated to $15.95–$16.40 per share, reflecting South America exit and cyberattack impacts.

• Total estimated full-year 2024 cyberattack impact is $1.90–$2.05 per share, with direct response costs at $1.30–$1.35 per share.

• Expect balanced pacing in the second half and return to baseline performance for Change Healthcare in 2025.

• Long-term growth target of 13%–16% reiterated.