UnitedHealth Group Inc (UNH, Financial) released its third-quarter 2023 earnings report on October 13, 2023, showcasing a strong performance driven by growth at Optum and UnitedHealthcare. The company reported revenues of $92.4 billion, marking a 14% increase year-over-year. Earnings from operations also grew by 14%, with earnings per share at $6.24 and adjusted earnings per share at $6.56. Cash flows from operations were reported at $6.9 billion.
Financial Highlights
UnitedHealth Group Inc (UNH, Financial)'s Q3 2023 revenues grew 14% to $92.4 billion year-over-year, including double-digit growth at both Optum and UnitedHealthcare. Earnings from operations were $8.5 billion, an increase of 14%. The company's third-quarter 2023 medical care ratio was 82.3%, compared to 81.6% last year, driven by outpatient care, primarily serving seniors, and business mix. The operating cost ratio of 15% increased from 14.4% last year as the company's business mix continues to shift to services and due to investments to support growth, offset in part by productivity improvements.
Performance of UnitedHealthcare and Optum
UnitedHealthcare's third-quarter revenues grew 13% to $69.9 billion, reflecting growth in the number of people served. Operating earnings were $4.6 billion compared to $3.8 billion last year. Optum's third-quarter revenues grew 22% to $56.7 billion. Operating earnings were $3.9 billion compared to $3.7 billion last year.
Outlook
UnitedHealth Group Inc (UNH, Financial) strengthened its full-year 2023 net earnings outlook to $23.60 to $23.75 per share and adjusted net earnings to $24.85 to $25.00 per share. The company is well-positioned to generate strong, diversified growth in the coming years, thanks to its broad-based growth strategy and focus on helping people access and receive the care they need.
