UnitedHealth Group Incorporated stock research
FY2024 Q4
UnitedHealth Group (UNH) Gross Margin — Quarter Ended Dec 31, 2024
Revenue remained stable compared to the previous quarter but was higher than the same quarter one year ago. Gross profit and gross margin both declined relative to the prior quarter and the year-ago period, while cost of revenue increased.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue remained stable compared to the previous quarter but was higher than the same quarter one year ago. Gross profit and gross margin both declined relative to the prior quarter and the year-ago period, while cost of revenue increased.
- The primary observable driver of margin change was the increase in cost of revenue relative to revenue, as revenue stayed flat sequentially and grew year-over-year but cost of revenue rose more sharply.
- Compared to the preceding quarter, gross margin weakened; compared to the same quarter one year earlier, gross margin also weakened. Revenue was unchanged sequentially and higher year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.6%
Gross profit
$88.3B
Revenue
$100.8B
Cost of revenue
$12.5B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-1.6 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, 2024 | $99.8B | $88.7B | $11.1B | 88.9% |
| Jun 30, 2024 | $98.9B | $87.5B | $11.3B | 88.5% |
| Sep 30, 2024 | $100.8B | $89.0B | $11.8B | 88.3% |
| Dec 31, 2024 | $100.8B | $88.3B | $12.5B | 87.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.6 pts
Year-over-year change
Dec 31, 2023
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin change was the increase in cost of revenue relative to revenue, as revenue stayed flat sequentially and grew year-over-year but cost of revenue rose more sharply.
Compared to the preceding quarter, gross margin weakened; compared to the same quarter one year earlier, gross margin also weakened. Revenue was unchanged sequentially and higher year-over-year.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters.