UnitedHealth CEO Says Profits Not Meeting 'Expectations' as Stock Tumbles

UnitedHealth "did not perform up to our expectations" in the first quarter, its CEO Andrew Witty said in a statement, in results that sent its stock tumbling by about 20 percent in premarket trading.

The company made headlines last year when one of its senior executives was shot and killed in a targeted attack.

When approached for comment, UnitedHealth pointed Newsweek to the company's news release and did not comment further on the update.

Why It Matters

UnitedHealth, which covers more than 50 million people, is the largest health insurer in the country. It also operates a large pharmacy benefit management business and a growing care delivery and technology services arm.

The company is the first insurer to report earnings each quarter and is viewed by analysts as a bellwether for the broader insurance industry.

What To Know

Shares of UnitedHealth tumbled to $466.44 in premarket trading on Thursday. The company now expects adjusted 2025 earnings of $26 to $26.50 per share—a sharp drop from its December forecast of $29.50 to $30, which it reaffirmed in January.

In the first quarter, UnitedHealth posted adjusted earnings of $7.20 per share on $109.58 billion in revenue, missing analysts' expectations of $7.29 per share on $111.53 billion in sales.

The company's Medicare Advantage segment, which serves individuals aged 65 and older through privately administered plans, experienced especially high levels of outpatient and physician service use—continuing a trend seen since the post-COVID-19 return to routine medical care.

The report weighed heavily on other insurers, with shares of Humana Inc.—the second-largest provider of Medicare Advantage plans—falling by 15 percent. Elevance Health also lost 10 percent, while CVS Health was down 7.5 percent.

Health insurance stocks have had a rough start of the year after being affected by reduced government payments, higher medical costs and public backlash against the sector after the murder of UnitedHealthcare CEO Brian Thompson in New York in December.

What People Are Saying

Kevin Gade, the chief operating officer of Bahl & Gaynor, which owns UnitedHealth's stock, said: "Nobody was expecting this level of a miss or cut to guidance."

UnitedHealth CEO Andrew Witty said in a statement: "UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead and return to our long-term earnings growth rate target of 13 to 16 percent."

What Happens Next

TD Cowen analyst Ryan Langston wrote in a research note that the company's results would call the 2025 guidance of every insurer into question.

This is a developing story and more information will be added soon.