UnitedHealth Group Incorporated stock research
FY2025 Q2
UnitedHealth Group (UNH) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, cost of revenue, and gross margin all increased compared to the immediately preceding quarter and the same quarter one year earlier, with gross profit increasing more than cost of revenue relative to revenue. The overall gross margin weakened slightly from the prior quarter but improved relative to a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, cost of revenue, and gross margin all increased compared to the immediately preceding quarter and the same quarter one year earlier, with gross profit increasing more than cost of revenue relative to revenue. The overall gross margin weakened slightly from the prior quarter but improved relative to a year ago.
- Compared to both the prior quarter and the year-ago quarter, revenue grew while cost of revenue grew at a slower pace, which supported gross profit expansion. Gross margin was modestly lower sequentially but higher year-over-year, reflecting a mixed short-term trend.
- Sequentially, revenue and gross profit increased while gross margin edged lower, indicating cost of revenue rose faster than revenue. Year-over-year, all metrics improved, with gross profit advancing more than cost of revenue relative to revenue, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.3%
Gross profit
$98.6B
Revenue
$111.6B
Cost of revenue
$13.0B
Quarter-over-quarter change
-0.4 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $100.8B | $89.0B | $11.8B | 88.3% |
| Dec 31, 2024 | $100.8B | $88.3B | $12.5B | 87.6% |
| Mar 31, 2025 | $109.6B | $97.2B | $12.4B | 88.7% |
| Jun 30, 2025 | $111.6B | $98.6B | $13.0B | 88.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.4 pts
Year-over-year change
Jun 30, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Compared to both the prior quarter and the year-ago quarter, revenue grew while cost of revenue grew at a slower pace, which supported gross profit expansion. Gross margin was modestly lower sequentially but higher year-over-year, reflecting a mixed short-term trend.
Sequentially, revenue and gross profit increased while gross margin edged lower, indicating cost of revenue rose faster than revenue. Year-over-year, all metrics improved, with gross profit advancing more than cost of revenue relative to revenue, leading to a higher gross margin.
Monitor the trajectory of cost of revenue growth relative to revenue, as sequential gross margin compression signals that cost control may be under pressure.