Oakland, Calif.-based Kaiser Permanente reported an operating income of $218 million (0.7% operating margin) in the third quarter of 2025, up from an operating loss of $608 million (-2.1%) margin during the same period last year, according to its Nov. 7 financial report.
Five things to know:
1. The system reported operating revenue of $31.8 billion for the three months ended Sept. 30, up from $29 billion during the same period last year.
2. Operating expenses were $31.6 billion, up from $29.6 billion during the third quarter of 2024. Kaiser Executive Vice President and CFO Kathy Lancaster said that like others in healthcare, the system faces “inflation, rising care acuity, high pharmaceutical costs and increasing labor expenses,” which continues to narrow its operating margin.
3. Net income was $2.6 billion for the quarter, up from $845 million during the same period last year.
4. Capital spending totaled $1.3 billion in the quarter, up from $922 million last year.
5. “There are new and ongoing challenges in health care, ranging from an aging and sicker population to the impacts of the federal budget bill that will reduce health care coverage and funding as health care costs rise,” Kaiser Chairman and CEO Greg Adams said in the report. “These challenges strengthen our resolve to fulfill our mission to provide high-quality, affordable care as we expand access to value-based care.”
