UnitedHealth Group (NYSE: UNH) saw its shares tumble over 17% on Tuesday after the company withdrew its full-year 2025 guidance and announced the sudden departure of CEO Andrew Witty amid rising medical costs and mounting operational challenges.
The company attributed the suspension of its forecast to a sharper-than-expected increase in medical expenses, particularly among newly enrolled Medicare Advantage members. tied to newly enrolled Medicare Advantage members as the reason for suspending its forecast. UnitedHealth noted that care utilization has continued to accelerate and expand across more benefit types than observed in the first quarter.
Witty’s departure follows a turbulent period for the company, including heightened scrutiny following the death of Brian Thompson, the former head of its insurance arm. UnitedHealth has since ramped up executive security amid increasing threats and legal pressures. Earlier this month, shareholders filed a lawsuit alleging the company failed to disclose the operational fallout from Thompson’s death.
The company had already issued a disappointing full-year forecast earlier this year following its first earnings miss since 2008. Investors had hoped UnitedHealth would reaffirm guidance as demand for healthcare services remained strong. However, rising medical costs and increased utilization — particularly from patients resuming elective procedures — have weighed on profitability.
While the company refrained from offering a near-term financial outlook, it expressed confidence in a return to growth in 2026, citing longer-term strategic positioning and demand trends across its Optum and Medicare-focused operations.
As of the latest update, UnitedHealth Group (NYSE: UNH) shares are down 17.79%, trading at $311.38.
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
