UnitedHealth Group Incorporated stock research
FY2024 Q2
UnitedHealth Group (UNH) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both decreased slightly compared to the immediately preceding quarter, while the year-ago quarter had lower revenue and gross profit. The gross margin weakened relative to both the prior quarter and the same quarter one year earlier, as cost of revenue rose at a faster rate than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both decreased slightly compared to the immediately preceding quarter, while the year-ago quarter had lower revenue and gross profit. The gross margin weakened relative to both the prior quarter and the same quarter one year earlier, as cost of revenue rose at a faster rate than revenue.
- The strongest observable driver of gross margin this quarter is the relationship between cost of revenue and revenue: cost of revenue increased while revenue decreased compared to the prior quarter, compressing the margin.
- Compared to the immediately preceding quarter, revenue and gross profit are lower, while gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit are higher, but gross margin is lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.5%
Gross profit
$87.5B
Revenue
$98.9B
Cost of revenue
$11.3B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $92.4B | $82.9B | $9.4B | 89.8% |
| Dec 31, 2023 | $94.4B | $84.2B | $10.2B | 89.2% |
| Mar 31, 2024 | $99.8B | $88.7B | $11.1B | 88.9% |
| Jun 30, 2024 | $98.9B | $87.5B | $11.3B | 88.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.4 pts
Year-over-year change
Jun 30, 2023
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin this quarter is the relationship between cost of revenue and revenue: cost of revenue increased while revenue decreased compared to the prior quarter, compressing the margin.
Compared to the immediately preceding quarter, revenue and gross profit are lower, while gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit are higher, but gross margin is lower.
Monitor the trajectory of cost of revenue relative to revenue in subsequent quarters, as its faster growth has contributed to margin compression.