UnitedHealth Group (UNH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues grew 9% year-over-year to $100.8 billion, driven by strong performance at Optum and UnitedHealthcare, with over 2 million new commercial consumers and 1.6 billion prescriptions filled through Optum Rx by year-end.

• UnitedHealthcare added 2.4 million domestic commercial members year-to-date, offset by Medicaid redeterminations and the sale of Brazil operations.

• The Change Healthcare cyberattack resulted in $1.7 billion in direct response costs and $747 million in business disruption impacts year-to-date, affecting full-year net earnings outlook.

• Maintained a full-year 2024 earnings outlook within the original range, demonstrating resilience and disciplined execution.

• Continued investment in AI, technology modernization, and strategic partnerships to drive efficiency, quality, and consumer experience.

Financial highlights

• Q3 2024 revenues were $100.8 billion, up 9% year-over-year; nine-month revenues reached $299.5 billion, up 8%.

• Net earnings attributable to shareholders for Q3 were $6.06 billion, with diluted EPS of $6.51 and adjusted EPS of $7.15.

• Cash flows from operations were $14 billion in Q3 (2.2x net income), and $21.8 billion year-to-date.

• Returned $9.6 billion to shareholders via dividends and share repurchases in the first nine months of 2024.

• Medical care ratio increased to 85.2% from 82.3% year-over-year, with operating margin at 8.6%.

Outlook and guidance

• Adjusted full-year 2024 earnings outlook narrowed to $27.50–$27.75 per share, absorbing $0.75 per share in business disruption from the Change Healthcare cyberattack.

• 2025 initial earnings guidance expected at the upper end of $30 per share, reflecting a conservative approach due to sector headwinds.

• Long-term EPS growth target of 13%-16% remains unchanged.

• Guidance range is consistent with prior estimates despite increased cyberattack-related impacts.