UnitedHealth Group (NYSE:UNH) shares stumbled on Tuesday, as the company issued a 2025 outlook that fell short of Wall Street’s expectations, as the company’s insurance unit continues to grapple with higher medical costs.
Shares of UnitedHealth Group fell $11.89, or 4.2%, to $270.25 in early trading on Tuesday.
The company anticipates it will post 2025 adjusted earnings of at least $16 per share, with revenue of $445.5 billion to $448 billion. Wall Street analysts had expected 2025 adjusted profit of $20.91 per share, and full-year revenue of $449.16 billion, according to consensus estimates from LSEG.
UnitedHealth said it expects to return to earnings growth in 2026.
The stock tumbled in May after the company suspended that 2025 guidance due to elevated medical costs and announced the abrupt departure of former CEO Andrew Witty. The report Tuesday adds to a growing string of setbacks for the company, which owns the nation’s largest and most powerful insurer, UnitedHealthcare, and is often viewed as the industry’s bellwether.
“While we face challenges across our lines of business, we believe we can resolve these issues and recapture our earnings growth potential while ensuring people have access to high-quality, affordable health care,” UnitedHealthcare CEO Tim Noel said in a release.
