UnitedHealth Group Incorporated stock research
FY2023 Q2
UnitedHealth Group (UNH) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue on a year-over-year basis, supporting gross margin improvement.
- Compared to the immediately preceding quarter, gross margin was slightly lower as cost of revenue grew at a faster pace relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, driven by a larger proportional increase in revenue versus cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.5%
Gross profit
$83.2B
Revenue
$92.9B
Cost of revenue
$9.7B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.2 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% |
| Jun 30, 2023 | $92.9B | $83.2B | $9.7B | 89.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.3 pts
Year-over-year change
Jun 30, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue on a year-over-year basis, supporting gross margin improvement.
Compared to the immediately preceding quarter, gross margin was slightly lower as cost of revenue grew at a faster pace relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, driven by a larger proportional increase in revenue versus cost of revenue.
Monitor the trend in cost of revenue growth relative to revenue growth, as a sustained faster increase in cost of revenue could pressure gross margin.