UnitedHealth Group Incorporated stock research
FY2023 Q3
UnitedHealth Group (UNH) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Cost of revenue decreased from the prior quarter, contributing to a slight improvement in gross margin, which remained relatively stable compared to the prior year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Cost of revenue decreased from the prior quarter, contributing to a slight improvement in gross margin, which remained relatively stable compared to the prior year.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. From the prior quarter, cost of revenue declined while revenue also declined, but the decline in cost of revenue was proportionally larger, resulting in an improved gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was marginally higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.8%
Gross profit
$82.9B
Revenue
$92.4B
Cost of revenue
$9.4B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.1 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% |
| Sep 30, 2023 | $92.4B | $82.9B | $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
Jun 30, 2023
+0.3 pts
Year-over-year change
Sep 30, 2022
+0.1 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. From the prior quarter, cost of revenue declined while revenue also declined, but the decline in cost of revenue was proportionally larger, resulting in an improved gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was marginally higher.
Monitor the trend in cost of revenue as a proportion of revenue, as it directly influences gross margin stability.