UnitedHealth Shares Plunge as Profit Forecast Misses Expectations

The health insurer's lower-than-expected 2025 earnings outlook reflects rising medical costs and government reimbursement challenges.

UnitedHealth Group's stock fell over 8% after announcing a 2025 profit forecast below Wall Street estimates.
The company's adjusted earnings per share for 2025 are projected to reach a maximum of $30, falling short of analysts' expectations of $31.18.
Higher medical costs and reduced government reimbursements for Medicare and Medicaid are key factors impacting UnitedHealth's financial outlook.
A cyberattack earlier this year on UnitedHealth's Change Healthcare division added unexpected costs, affecting the company's 2024 profit forecast.
Despite these challenges, UnitedHealth reported a third-quarter profit of $6.06 billion, beating analyst estimates, driven by increased revenue and membership growth.