UnitedHealth Group Reports Robust 2024 Financial Results, Sets Ambitious 2025 Outlook

UnitedHealth Group (UNH), a leading diversified health care company, reported strong financial results for the full year and fourth quarter of 2024, reflecting its continued growth and expansion. The company's revenues grew by 8% year-over-year to $400.3 billion, driven by its comprehensive approach to serving people across its enterprise. UnitedHealth Group's net earnings for the full year and fourth quarter were $15.51 and $5.98 per share, respectively, while adjusted net earnings were $27.66 and $6.81 per share.

The company's medical care ratio increased to 85.5% in 2024, primarily due to revenue effects of CMS's Medicare funding reductions, member mix, and timing of Medicaid redeterminations. Additionally, increased hospital coding intensity and specialty medication prescribing contributed to the higher medical care ratio. UnitedHealth Group's operating cost ratio improved to 13.2% in 2024, reflecting gains from business portfolio refinement and strong improvement in operating efficiencies and consumer experiences.

UnitedHealth Group affirmed its 2025 performance outlook, which includes revenues of $450 billion to $455 billion, net earnings of $28.15 to $28.65 per share, adjusted net earnings of $29.50 to $30.00 per share, and cash flow from operations of $32 billion to $33 billion. The company's 2025 outlook aligns with analysts' expectations, with analysts polled by Thomson Reuters expecting earnings of $29.86 per share on revenues of $445.64 billion for the year.

UnitedHealth Group's strong financial performance in 2024 positions it well for growth in 2025. The company's focus on diversified growth, serving people more extensively at Optum and UnitedHealthcare, and making the health system easier to navigate for patients and providers, has contributed to its success. UnitedHealth Group's consistent, broad-based earnings and efficient capital structure, as reflected in its return on equity of 23.7% in the fourth quarter, further support its ability to achieve its 2025 targets.

In conclusion, UnitedHealth Group's robust 2024 financial results and ambitious 2025 outlook demonstrate the company's strong position in the healthcare sector. With its focus on diversified growth and commitment to improving the health system, UnitedHealth Group is well-positioned to continue its success in the coming years.