UnitedHealth Misses Earnings, Cuts 2025 Forecast

UnitedHealth Group reported its first earnings miss in over a decade and significantly reduced its annual profit forecast, causing its shares to fall by nearly 20% and impacting other major health insurers. The company attributed the shortfall to surging medical costs in Medicare Advantage plans and challenges in its Optum Health business, both worsened by recent Medicare payment reductions and increased care utilization. For Q1 2025, UnitedHealth posted adjusted earnings of $7.20 per share on $109.6 billion in revenue, missing Wall Street expectations. The company now forecasts full-year adjusted earnings of $26 to $26.50 per share, down from a previous estimate of $29.50 to $30. CEO Andrew Witty acknowledged the disappointing results and committed to aggressive measures to address the issues. The report raised concerns across the health insurance sector, with significant share declines for rivals such as Humana, Elevance, and CVS Health.