UnitedHealth Group (NYSE: UNH) shares fell 22% during regular trading on Thursday after the healthcare giant reported disappointing first-quarter results and sharply lowered its full-year 2025 earnings guidance.
The company now expects full-year earnings per share in the range of $26.00 to $26.50, significantly below its previous outlook of $29.50 to $30.00 and well under the consensus estimate of $29.74. The revised forecast marks a substantial expectations reset as the company navigates mounting operational and cost pressures.
For Q1, UnitedHealth posted EPS of $7.20, missing the analyst forecast of $7.29. Revenue rose 9.8% year-over-year to $109.6 billion, but also fell short of the $111.5 billion consensus estimate.
While the UnitedHealthcare insurance segment delivered better-than-expected revenue of $84.62 billion—up 12% from the prior year—the Optum health services division underperformed, generating $63.9 billion in revenue versus the $67.17 billion projected by analysts.
UnitedHealth maintained its target of enrolling 650,000 new patients in value-based care programs under its Optum Health arm for the year. However, the company acknowledged it is facing challenges in delivering the expected level of performance and is taking steps to recalibrate operations.
Despite long-term growth ambitions, Thursday’s report underscored the near-term headwinds affecting UnitedHealth’s execution and investor confidence.
As of press time, UnitedHealth Group (NYSE: UNH) stock trades at $454.11. The shares have fallen more than 3% over the past year.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
