UnitedHealth Group Reports Third Quarter 2024 Results

Rhea-AI Summary

UnitedHealth Group reported strong Q3 2024 results with revenues of $100.8 billion, up $8.5 billion year-over-year. Earnings per share were $6.51, including cyberattack impacts, while adjusted earnings were $7.15 per share. The company maintained its full-year 2024 adjusted earnings outlook of $27.50 to $27.75 per share, despite absorbing an estimated $0.75 per share in business disruption impacts.

Key highlights include:

• UnitedHealthcare's commercial domestic offerings grew by 2.4 million consumers year-to-date
• Medical care ratio increased to 85.2% from 82.3% last year
• Operating cost ratio improved to 13.2% from 15.0% in the prior year
• Cash flows from operations were $14.0 billion in Q3
• The company returned over $9.6 billion to shareholders through dividends and share repurchases in the first nine months of 2024

Positive

• Revenue growth of $8.5 billion year-over-year to $100.8 billion
• UnitedHealthcare's commercial domestic offerings grew by 2.4 million consumers year-to-date
• Maintained full-year 2024 adjusted earnings outlook of $27.50 to $27.75 per share
• Improved operating cost ratio to 13.2% from 15.0% in the prior year
• Strong cash flows from operations of $14.0 billion in Q3
• Returned over $9.6 billion to shareholders through dividends and share repurchases in the first nine months of 2024

Negative

• Earnings per share of $6.51 impacted by cyberattack
• Medical care ratio increased to 85.2% from 82.3% last year
• Absorbing an estimated $0.75 per share in business disruption impacts
• No favorable earnings impacting medical reserve development in the quarter

Insights

Financial Analyst

UnitedHealth Group's Q3 2024 results demonstrate strong financial performance and growth. Revenues increased by $8.5 billion year-over-year to $100.8 billion, driven by expansion in both Optum and UnitedHealthcare segments. The company's adjusted earnings per share of $7.15 include $0.12 in business disruption impacts but exclude $0.28 in direct response costs related to a cyberattack.

Key financial metrics:

• Medical care ratio increased to 85.2% from 82.3% last year
• Operating cost ratio improved to 13.2% from 15.0% in the prior year
• Cash flows from operations were $14.0 billion, 2.2 times net income
• Return on equity stood at 26.3%

The company maintained its full-year 2024 adjusted earnings outlook of $27.50 to $27.75 per share, despite absorbing an estimated $0.75 per share in business disruption impacts. This resilience in the face of challenges demonstrates UnitedHealth's robust business model and effective management.

Healthcare Industry Analyst

UnitedHealth Group's Q3 results reflect significant growth in its customer base and service offerings. UnitedHealthcare's domestic commercial offerings grew by 2.4 million consumers year-to-date, reaching 29.7 million. This expansion indicates strong market acceptance of their innovative products and consumer-focused approach.

The company's Medicare Advantage plans are set to reach 96% of eligible beneficiaries in 2025, positioning UNH well in the growing senior care market. Optum Health's revenue growth of $2.1 billion to $25.9 billion showcases the success of its value-based care model and expanded care offerings.

Optum Rx's performance is particularly noteworthy, with revenue growth of $5.4 billion and adjusted scripts increasing to 410 million from 380 million last year. This growth in pharmacy services, including specialty and community-based pharmacies, indicates UNH's strengthening position in the pharmaceutical value chain.

Despite challenges from the Change Healthcare cyberattack, UNH's diverse business model and strong market position across multiple healthcare segments provide resilience and continued growth opportunities.

• Revenues of $100.8 Billion Grew $8.5 Billion Year Over Year
• Consumers Served by UnitedHealthcare’s Commercial Domestic Offerings Grew 2.4 Million Year to Date
• Third Quarter Earnings of $6.51 Per Share Include Cyberattack Impacts
• Adjusted Earnings of $7.15 Per Share Include $0.12 in Business Disruption Impacts; Exclude $0.28 Direct Response Costs

UnitedHealth Group (NYSE: UNH) reported third quarter 2024 results reflecting broad-based growth in the number of people served by Optum and UnitedHealthcare.

UnitedHealth Group corporate headquarters (Photo: Business Wire)

“Our continued growth, which positions us well for the coming years, is rooted in the innovative products and responsive service of our people that are embraced each day across the full range of health care participants,” said Andrew Witty, chief executive officer of UnitedHealth Group.

The company’s full year 2024 net earnings outlook of $15.50 to $15.75 per share reflects the South America operations disposition activities reported in the first half of 2024 and Change Healthcare cyberattack impacts.

The company’s adjusted net earnings outlook of $27.50 to $27.75 continues within the $27.50 to $28.00 range established nearly a year ago, even as it absorbs an estimated $0.75 per share of business disruption impacts for the affected Change Healthcare services, which have increased ~$0.10 per share from the estimate provided last quarter.

Quarterly Financial Performance
	Three Months Ended
	September 30, 2024	September 30, 2024 (Adj)	September 30, 2023	December 31, 2023
Revenues	$100.8 billion	$100.8 billion	$92.4 billion	$94.4 billion
Earnings from Operations	$ 8.7 billion	$ 9.0 billion	$ 8.5 billion	$ 7.7 billion
Net Margin	6.0%	6.3%	6.3%	5.8%

• Third quarter 2024 revenues grew nearly $8.5 billion to $100.8 billion, led by strong expansion in people served at Optum and UnitedHealthcare. Third quarter earnings from operations were $8.7 billion, including $0.3 billion in unfavorable cyberattack effects. Adjusted earnings from operations of $9.0 billion include the Change Healthcare business disruption impacts and exclude the cyberattack direct response costs.
• The third quarter 2024 medical care ratio was 85.2% compared to 82.3% last year. Among factors contributing to the increase were the previously noted CMS Medicare funding reductions, medical reserve development effects and business and member mix. The company did not have any favorable earnings impacting medical reserve development in the quarter.
• Days claims payable of 47.4 compared to 45.2 in the second quarter of 2024 and 50.7 in the third quarter of 2023. The increase from the second quarter 2024 was due to a return to more normal claims submission patterns from care providers. The change from the year ago level reflected continued impact due to the accelerated claims payment timeframes.
• The third quarter of 2024 operating cost ratio of 13.2% compares to 13.3% in the second quarter of 2024 and 15.0% in the prior year, reflecting continued strong operating cost efficiency.
• Cash flows from operations from the third quarter of 2024 were $14.0 billion, or 2.2 times net income, in part reflecting the timing of cash receipts. The company returned over $9.6 billion to shareholders through the first nine months of 2024 through dividends and share repurchases. Return on equity of 26.3% in the quarter reflected the company’s consistent, broad-based earnings and efficient capital structure.

UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience, and reducing the total cost of care.

Quarterly Financial Performance
	Three Months Ended
	September 30, 2024	September 30, 2023	December 31, 2023
Revenues	$74.9 billion	$69.9 billion	$70.8 billion
Earnings from Operations	$ 4.2 billion	$ 4.6 billion	$ 3.1 billion
Operating Margin	5.6%	6.6%	4.4%

• UnitedHealthcare third quarter revenues of $74.9 billion increased $5 billion over the prior year, reflecting growth in the number of people served domestically. Operating earnings were $4.2 billion.
• Year to date, the number of consumers served domestically with the company’s commercial offerings grew by 2.4 million to 29.7 million, as UnitedHealthcare’s innovative and consumer-focused product portfolio continues to resonate with consumers and employers.
• UnitedHealthcare serves 9.4 million seniors and people with complex needs and the company’s 2025 Medicare Advantage plans will reach 96% of eligible Medicare beneficiaries. Recently released Stars scores by CMS for plan year 2026 are consistent with initial levels for plan year 2025 and company expectations.
• Total people served by the company’s state-based community offerings grew from the second quarter to 7.5 million, as the state-driven Medicaid eligibility redeterminations process concluded. The UnitedHealthcare team is continuing its comprehensive outreach to help families maintain, reinstate, or find other affordable coverage.

The Optum health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance by optimizing care quality, reducing care costs and improving the consumer experience.

Quarterly Financial Performance
	Three Months Ended
	September 30, 2024	September 30, 2024 (Adj)	September 30, 2023	December 31, 2023
Revenues	$63.9 billion	$63.9 billion	$56.7 billion	$59.5 billion
Earnings from Operations	$ 4.5 billion	$ 4.8 billion	$ 3.9 billion	$ 4.6 billion
Operating Margin	7.0%	7.4%	6.9%	7.7%

• Optum third quarter revenues of $63.9 billion grew $7.2 billion over the prior year, with growth led by Optum Health and Optum Rx. Operating earnings were $4.5 billion and adjusted operating earnings were $4.8 billion. Adjusted operating earnings exclude costs to support the direct Change Healthcare response efforts. Operating earnings and adjusted operating earnings include $135 million in business disruption impacts at Change Healthcare.
• Optum Health revenue grew $2.1 billion to $25.9 billion, reflecting growth in the number of patients served under value-based care offerings and expansion of the types and level of care offered. Optum Health continued to advance and deepen its clinical support for patients across various sites of care, including in-home and clinic.
• Optum Insight operating earnings were approximately $800 million and adjusted operating earnings, which exclude direct response costs, were $1 billion. Operating earnings and adjusted operating earnings include the $135 million of business disruption impacts compared to $335 million in the second quarter. The revenue backlog grew by more than $1 billion over last year, largely due to new health system partnerships.
• Optum Rx revenue growth of $5.4 billion to $34.2 billion reflects new customers served, deepened relationships with existing clients and the expansion of its comprehensive pharmacy services offerings, including specialty and community-based pharmacies. Adjusted scripts grew to nearly 410 million, compared to 380 million last year.

About UnitedHealth Group

UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow UnitedHealth Group on LinkedIn.

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss the company’s results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company’s website (www.unitedhealthgroup.com). Following the call, a webcast replay will be on the Investor Relations page through October 29, 2024. This earnings release and the Form 8-K dated October 15, 2024, can also be accessed from the Investor Relations page of the company’s website.

Non-GAAP Financial Information

This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Forward-Looking Statements

The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements which are intended to take advantage of the “safe harbor” provisions of the federal securities laws. The words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; the DOJ’s legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to maintain or increase our market share; changes in or challenges to our public sector contract awards; failure to achieve targeted operating cost productivity improvements; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; the impact of potential changes in tax laws and regulations; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to complete, manage or integrate strategic transactions; risk and uncertainties associated with the pending sale of operations in South America; risks associated with public health crises arising from large-scale medical emergencies, pandemics, natural disasters and other extreme events; failure to attract, develop, retain, and manage the succession of key employees and executives; our investment portfolio performance; impairment of our goodwill and intangible assets; failure to protect proprietary rights to our databases, software and related products; downgrades in our credit ratings; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, reinvest in our business, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock.

This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations, more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.

UNITEDHEALTH GROUP

Earnings Release Schedules and Supplementary Information

Quarter Ended September 30, 2024

• Condensed Consolidated Statements of Operations
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows
• Revenues by Business - Supplemental Financial Information
• Earnings by Business - Supplemental Financial Information
• People Served and Performance Metrics - Supplemental Financial Information
• Reconciliation of Non-GAAP Financial Measures

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data; unaudited)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023		2024		2023
Revenues
Premiums		$77,442		$72,339		$232,327		$217,599
Products		12,631		10,354		36,751		31,272
Services		9,104		8,671		26,742		25,414
Investment and other income		1,643		997		3,651		2,910
Total revenues		100,820		92,361		299,471		277,195
Operating costs
Medical costs		65,957		59,550		197,150		179,663
Operating costs		13,280		13,855		40,519		41,289
Cost of products sold		11,834		9,423		34,230		28,576
Depreciation and amortization		1,041		1,007		3,058		2,998
Total operating costs		92,112		83,835		274,957		252,526
Earnings from operations		8,708		8,526		24,514		24,669
Interest expense		(1,074)		(834)		(2,903)		(2,416)
Loss on sale of subsidiary and subsidiaries held for sale		(20)		—		(8,331)		—
Earnings before income taxes		7,614		7,692		13,280		22,253
Provision for income taxes		(1,356)		(1,654)		(3,822)		(4,784)
Net earnings		6,258		6,038		9,458		17,469
Earnings attributable to noncontrolling interests		(203)		(197)		(596)		(543)
Net earnings attributable to UnitedHealth Group common shareholders		$6,055		$5,841		$8,862		$16,926
Diluted earnings per share attributable to UnitedHealth Group common shareholders		$6.51		$6.24		$9.53		$18.01
Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a)		$7.15		$6.56		$20.85		$18.95
Diluted weighted-average common shares outstanding		930		936		930		940

(a)	See page 7 for a reconciliation of non-GAAP measures.

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions; unaudited)
		September 30, 2024		December 31, 2023
Assets
Cash and short-term investments		$37,134		$29,628
Accounts receivable, net		20,024		21,276
Other current assets		35,100		27,533
Total current assets		92,258		78,437
Long-term investments		48,689		47,609
Other long-term assets		158,362		147,674
Total assets		$299,309		$273,720
Liabilities, redeemable noncontrolling interests and equity
Medical costs payable		$33,951		$32,395
Short-term borrowings and current maturities of long-term debt		3,909		4,274
Other current liabilities		63,705		62,385
Total current liabilities		101,565		99,054
Long-term debt, less current maturities		74,101		58,263
Other long-term liabilities		19,188		17,484
Redeemable noncontrolling interests		4,574		4,498
Equity		99,881		94,421
Total liabilities, redeemable noncontrolling interests and equity		$299,309		$273,720

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
		Nine Months Ended September 30,
		2024		2023
Operating Activities
Net earnings		$9,458		$17,469
Noncash items:
Depreciation and amortization		3,058		2,998
Deferred income taxes and other		(844)		(553)
Share-based compensation		831		851
Loss on sale of subsidiary and subsidiaries held for sale		8,331		—
Net changes in operating assets and liabilities		1,001		13,496
Cash flows from operating activities		21,835		34,261
Investing Activities
Sales and maturities of investments, net of purchases (purchases, net of sales and maturities)		1,852		(2,850)
Purchases of property, equipment and capitalized software		(2,587)		(2,427)
Cash paid for acquisitions and other transactions, net		(11,674)		(8,389)
Loans to care providers - cyberattack		(8,904)		—
Repayment of care provider loans - cyberattack		3,189		—
Other, net		(1,284)		(721)
Cash flows used for investing activities		(19,408)		(14,387)
Financing Activities
Common share repurchases		(4,028)		(6,500)
Dividends paid		(5,601)		(5,023)
Net change in short-term borrowings and long-term debt		15,120		5,848
Other, net		(661)		1,302
Cash flows from (used for) financing activities		4,830		(4,373)
Effect of exchange rate changes on cash and cash equivalents		(30)		49
Increase in cash and cash equivalents, including cash within businesses held for sale		7,227		15,550
Less: cash within businesses held for sale		(254)		—
Net increase in cash and cash equivalents		6,973		15,550
Cash and cash equivalents, beginning of period		25,427		23,365
Cash and cash equivalents, end of period		$32,400		$38,915

UNITEDHEALTH GROUP
REVENUES BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION
(in millions; unaudited)
				Optum								UnitedHealth Group Consolidated (a)
		UnitedHealthcare		Optum Health		Optum Insight		Optum Rx		Total Optum (a)
Three Months Ended September 30, 2024
Total revenues		$74,853		$25,917		$4,931		$34,207		$63,925		$100,820
Business disruption impacts - cyberattack (c)		$—		$—		$134		$—		$134		$134
Three Months Ended September 30, 2023
Total revenues		$69,853		$23,864		$4,977		$28,857		$56,737		$92,361
Nine Months Ended September 30, 2024
Total revenues		$224,076		$79,698		$13,976		$97,457		$187,856		$299,471
South American impacts		220		—		—		—		—		220
Adjusted revenues (b)		$224,296		$79,698		$13,976		$97,457		$187,856		$299,691
Business disruption impacts - cyberattack (c)		$—		$—		$747		$—		$747		$747
Nine Months Ended September 30, 2023
Total revenues		$210,552		$70,785		$14,147		$84,921		$167,140		$277,195

UnitedHealthcare Revenues
(in millions; unaudited)
		Employer & Individual (E&I)						Medicare & Retirement		Community & State		Total UnitedHealthcare
		Domestic		Global		Total E&I
Three Months Ended September 30, 2024
Total revenues		$18,985		$769		$19,754		$34,904		$20,195		$74,853
Three Months Ended September 30, 2023
Total revenues		$16,854		$2,417		$19,271		$32,022		$18,560		$69,853
Nine Months Ended September 30, 2024
Total revenues		$55,470		$2,892		$58,362		$105,294		$60,420		$224,076
Nine Months Ended September 30, 2023
Total revenues		$50,157		$6,905		$57,062		$97,468		$56,022		$210,552

(a)	Optum and consolidated revenues for the three months ended September 30, 2024 and 2023 include Optum eliminations of $1,130 and $961; and corporate eliminations of $37,958 and $34,229, respectively. Optum and consolidated revenues for the nine months ended September 30, 2024 and 2023 include Optum eliminations of $3,275 and $2,713; and corporate eliminations of $112,461 and $100,497, respectively.
(b)	See page 7 for description of non-GAAP measures.
(c)	Amounts represent reduced revenues due to business disruption.

UNITEDHEALTH GROUP
EARNINGS BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION
(in millions, except percentages; unaudited)
					Optum								UnitedHealth Group Consolidated
		UnitedHealthcare			Optum Health		Optum Insight		Optum Rx		Total Optum
Three Months Ended September 30, 2024
Earnings from operations		$4,212			$2,161		$791		$1,544		$4,496		$8,708
Direct response costs - cyberattack		—			—		257		—		257		257
Adjusted earnings from operations (b)		$4,212			$2,161		$1,048		$1,544		$4,753		$8,965
Total direct response costs - cyberattack (c)		$—			$—		$257		$—		$257		$341
Operating margin		5.6 %			8.3 %		16.0 %		4.5 %		7.0 %		8.6 %
Adjusted operating margin (b)		5.6 %			8.3 %		21.3 %		4.5 %		7.4 %		8.9 %
Business disruption impacts - cyberattack (d)		$—			$—		$134		$—		$134		$134
Total cyberattack impacts		$—			$—		$391		$—		$391		$475
Three Months Ended September 30, 2023
Earnings from operations		$4,592			$1,568		$1,109		$1,257		$3,934		$8,526
Operating margin		6.6 %			6.6 %		22.3 %		4.4 %		6.9 %		9.2 %
Nine Months Ended September 30, 2024
Earnings from operations		$12,611			$5,979		$1,827		$4,097		$11,903		$24,514
Direct response costs - cyberattack		485		(a)	160	(a)	876		—		1,036		1,521
South American impacts		115			—		—		—		—		115
Adjusted earnings from operations (b)		$13,211			$6,139		$2,703		$4,097		$12,939		$26,150
Total direct response costs - cyberattack (c)		$485			$160		$876		$—		$1,036		$1,710
Operating margin		5.6 %			7.5 %		13.1 %		4.2 %		6.3 %		8.2 %
Adjusted operating margin (b)		5.9 %			7.7 %		19.3 %		4.2 %		6.9 %		8.7 %
Business disruption impacts - cyberattack (d)		$—			$—		$747		$—		$747		$747
Total cyberattack impacts		$485			$160		$1,623		$—		$1,783		$2,457
Nine Months Ended September 30, 2023
Earnings from operations		$13,293			$4,869		$2,984		$3,523		$11,376		$24,669
Operating margin		6.3 %			6.9 %		21.1 %		4.1 %		6.8 %		8.9 %

(a)	Amounts primarily represent incremental medical costs for accommodations to support care providers.
(b)	See page 7 for description of non-GAAP measures.
(c)	Amounts represent direct response costs incurred within the operating segments and at the parent (e.g., interest expense).
(d)	Amounts represent reduced revenues due to business disruption. These amounts are not included within the adjustment to earnings from operations.

UNITEDHEALTH GROUP
PEOPLE SERVED AND PERFORMANCE METRICS - SUPPLEMENTAL FINANCIAL INFORMATION
(unaudited)
UnitedHealthcare Customer Profile
(in thousands)
People Served		September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023
Commercial - Domestic:
Risk-based		8,900		8,735		8,115		8,120
Fee-based		20,830		20,835		19,200		19,130
Total Commercial - Domestic		29,730		29,570		27,315		27,250
Medicare Advantage		7,810		7,770		7,695		7,645
Medicaid		7,450		7,410		7,845		8,065
Medicare Supplement (Standardized)		4,340		4,335		4,355		4,345
Total Community and Senior		19,600		19,515		19,895		20,055
Total UnitedHealthcare - Domestic Medical		49,330		49,085		47,210		47,305
Commercial - Global		1,335		1,330		5,540		5,475
Total UnitedHealthcare - Medical		50,665		50,415		52,750		52,780
Supplemental Data
Medicare Part D stand-alone		3,055		3,065		3,315		3,355

Optum Performance Metrics
		September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023
Optum Health Consumers Served (in millions)		104		104		103		103
Optum Insight Contract Backlog (in billions)		$32.8		$32.6		$32.1		$31.6
Optum Rx Quarterly Adjusted Scripts (in millions)		407		399		400		383

Note: UnitedHealth Group served 148 million unique individuals across all businesses at September 30, 2024.

UNITEDHEALTH GROUP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Use of Non-GAAP Financial Measures

Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin, adjusted net margin and adjusted revenues are non-GAAP financial measures. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Adjustments made to these measures are as follows: Intangible Amortization: Adjusted net earnings per share excludes intangible amortization from the relevant GAAP measure. As amortization fluctuates based on the size and timing of the Company’s acquisition activity, management believes this exclusion presents a more useful comparison of the Company's underlying business performance and trends from period to period. While intangible assets contribute to the Company’s revenue generation, the intangible amortization is not directly related. Therefore, the related revenues are included in adjusted earnings per share. South American Impacts: Adjusted net earnings per share and adjusted net margin excludes the effects of various international transactions, including the loss on sale of our Brazilian operations that was completed on February 6, 2024, the loss on our remaining South American operations being classified as held for sale and certain other non-recurring matters impacting our South American operations. Adjusted earnings from operations, adjusted operating margin and adjusted revenues excludes the effects of certain non-recurring matters impacting our South American operations. As these matters are related to the Company's strategy to exit South America, the impact is not representative of the Company's underlying business performance and therefore management believes the exclusion presents a more useful comparison of the Company's underlying business performance and trends from period to period. Direct Response Costs - Cyberattack: Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin and adjusted net margin excludes cyberattack direct response costs. Management believes the exclusion of costs incurred to investigate and remediate the attack, other direct and incremental costs incurred as a result of the cyberattack and incremental costs for accommodations to support care providers presents a more useful comparison of the Company's and its reportable segments' underlying business performance and trends from period to period. Note: See pages 4 and 5 for reconciliation of GAAP amounts to adjusted revenues, adjusted earnings from operations and adjusted operating margin.

UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, except per share data; unaudited)
Adjusted Net Earnings Per Share
		Three Months Ended September 30,				Nine Months Ended September 30,				Projected Year Ended December 31,
		2024		2023		2024		2023		2024
Net earnings attributable to UnitedHealth Group common shareholders		$6,055		$5,841		$8,862		$16,926		$14,375 - $14,650
Intangible amortization		426		392		1,242		1,178		~1,650
Tax effect of intangible amortization		(104)		(96)		(305)		(292)		~(410)
South American impacts		9		—		8,435		—		~8,515
Tax effect of South American impacts		4		—		(153)		—		~(175)
Direct response costs - cyberattack		341		—		1,710		—		~2,000
Tax effect of direct response costs - cyberattack		(80)		—		(403)		—		~(470)
Adjusted net earnings attributable to UnitedHealth Group common shareholders		$6,651		$6,137		$19,388		$17,812		$25,475 - $25,750
Diluted earnings per share		$6.51		$6.24		$9.53		$18.01		$15.50 - $15.75
Intangible amortization per share		0.46		0.42		1.34		1.25		~1.80
Tax effect of intangible amortization per share		(0.11)		(0.10)		(0.33)		(0.31)		~(0.45)
South American impacts per share		0.01		—		9.07		—		~9.15
Tax effect of South American impacts per share		—		—		(0.17)		—		~(0.15)
Direct response costs - cyberattack per share		0.37		—		1.84		—		~2.15
Tax effects of direct response costs - cyberattack per share		(0.09)		—		(0.43)		—		~(0.50)
Adjusted diluted earnings per share		$7.15		$6.56		$20.85		$18.95		$27.50 - $27.75
Additional Information: Total Cyberattack Impacts
Business disruption impacts (a)		$134		$—		$747		$—		~$870
Tax effect of business disruption impacts (a)		(21)		—		(139)		—		~(165)
Business disruption impacts, net of tax (a)		$113		$—		$608		$—		~$705
Business disruption impacts per share (a)		$0.12		$—		$0.65		$—		~$0.75
Total cyberattack impacts		$475		$—		$2,457		$—		~2,870
Tax effect of total cyberattack impacts		(101)		—		(542)		—		~(635)
Total cyberattack impacts, net of tax		$374		$—		$1,915		$—		~$2,235
Total cyberattack impacts per share		$0.40		$—		$2.06		$—		~$2.40

(a)	Amounts represent reduced revenues due to business disruption. These amounts are not included within the adjustment to net earnings.

Adjusted Net Margin
		Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Consolidated revenue		$100,820		$299,471
South American impacts		—		220
Adjusted consolidated revenues		$100,820		$299,691
Net earnings attributable to UnitedHealth Group common shareholders		$6,055		$8,862
South American impacts		9		8,435
Tax effect of South American impacts		4		(153)
Direct response costs - cyberattack		341		1,710
Tax effect of direct response costs - cyberattack		(80)		(403)
Adjusted net earnings attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs		$6,329		$18,451
Net margin attributable to UnitedHealth Group common shareholders		6.0 %		3.0 %
Adjusted net margin attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs		6.3 %		6.2 %

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015234962/en/

Investor Contact:

Zack Sopcak

952-936-7215

zack.sopcak@uhg.com

Media Contact:

Eric Hausman

952-936-3963

eric.hausman@uhg.com

Source: UnitedHealth Group

FAQ

What was UnitedHealth Group's (UNH) revenue in Q3 2024?

UnitedHealth Group's revenue in Q3 2024 was $100.8 billion, representing an increase of $8.5 billion year-over-year.

How did the cyberattack impact UnitedHealth Group's (UNH) earnings in Q3 2024?

The cyberattack impacted UnitedHealth Group's earnings, resulting in reported earnings of $6.51 per share. Adjusted earnings of $7.15 per share included $0.12 in business disruption impacts and excluded $0.28 in direct response costs.

What is UnitedHealth Group's (UNH) full-year 2024 earnings outlook?

UnitedHealth Group maintained its full-year 2024 adjusted earnings outlook of $27.50 to $27.75 per share, despite absorbing an estimated $0.75 per share in business disruption impacts.

How many new consumers did UnitedHealthcare's commercial domestic offerings gain in 2024?

UnitedHealthcare's commercial domestic offerings grew by 2.4 million consumers year-to-date in 2024, reaching a total of 29.7 million consumers served.