UnitedHealth Group Incorporated stock research
FY2023 Q1
UnitedHealth Group (UNH) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased in the current quarter compared to the prior quarter and the same quarter last year. Cost of revenue also rose, and gross margin was slightly lower than the prior quarter but higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased in the current quarter compared to the prior quarter and the same quarter last year. Cost of revenue also rose, and gross margin was slightly lower than the prior quarter but higher than the year-ago quarter.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue grew faster than gross profit, leading to a marginal gross margin decline, while year-over-year revenue growth outpaced cost growth, resulting in an improved margin.
- Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue was also higher, causing gross margin to weaken slightly. Year-over-year, all metrics increased, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.8%
Gross profit
$82.5B
Revenue
$91.9B
Cost of revenue
$9.4B
Quarter-over-quarter change
n/a
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $91.9B | $82.5B | $9.4B | 89.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue grew faster than gross profit, leading to a marginal gross margin decline, while year-over-year revenue growth outpaced cost growth, resulting in an improved margin.
Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue was also higher, causing gross margin to weaken slightly. Year-over-year, all metrics increased, and gross margin improved.
Medical costs payable, as reported in the balance sheet, is a concrete item to monitor for potential impacts on future margins.