UnitedHealth Q4 Revenue Up 12.3% as Medicare Advantage Membership Climbs 7.6%
UnitedHealth’s Q4 2025 revenues grew 12.3% year-over-year, with 17.5% expansion in UnitedHealthcare and 8% growth at Optum, while its Medicare Advantage membership rose 7.6%. The company ended 2025 with $28.1 billion in cash, a 41.6% debt-to-capital ratio and a 92.4% medical care ratio.
1. Q4 2025 Revenue and Segment Performance
UnitedHealth reported a 12.3% increase in total revenue for the fourth quarter of 2025, driven by a 17.5% gain in its UnitedHealthcare insurance business and an 8% rise at its Optum health services arm.
2. Membership Growth and Cost Pressures
Medicare Advantage membership grew 7.6% year-over-year, while overall domestic medical membership rose 0.8%. However, the medical care ratio climbed to 92.4% as medical costs surged 22.4%, pressuring profit margins.
3. Balance Sheet Strength
The company closed 2025 with $28.1 billion in cash and short-term investments, compared with $6.1 billion in current maturities of long-term debt. Its total debt-to-capital ratio stood at 41.6%, below industry averages.
4. 2026 Earnings Outlook
Analyst consensus forecasts an 8.2% increase in 2026 earnings with nine upward and two downward revisions over the past month, reflecting confidence in ongoing growth initiatives and cost management efforts.