Overview

• UnitedHealth reported Q1 2025 adjusted earnings per share of $7.20, falling short of the $7.29 analyst consensus and marking its first earnings miss in 17 years.
• The company revised its full-year profit forecast to $24.65–$25.15 per share, significantly down from its initial $29.50–$30.00 guidance set in January.
• Key drivers for the forecast cut include higher-than-expected Medicare Advantage utilization, ongoing Medicare funding cuts, and unexpected reimbursement shifts in its Optum business.
• UnitedHealth's medical-cost ratio rose to 84.8%, reflecting increased payouts for medical claims, particularly in physician and outpatient services.
• The earnings miss triggered a 20% drop in UnitedHealth's stock, erasing over $100 billion in market value, while other health insurers saw temporary declines before stabilizing.