"UnitedHealth is reeling from a roughly 20% stock rout after warning investors it expects its first annual revenue decline in more than three decades, a stunning reversal for a company long seen as one of Wall Street's most reliable growth engines. The selloff wiped tens of billions of dollars off the health-care giant's market value and sent shockwaves through the broader managed-care sector as investors reassessed the risks in the once‑high‑flying Medicare Advantage business."
"UnitedHealth's collapse accelerated after the company paired its fourth-quarter and full-year 2025 results with a 2026 outlook that calls for revenue of "greater than" $439 billion, roughly a 2% drop from last year and well below analyst expectations of around $454 billion. It would mark the first time since the late 1980s that the company's annual revenue has contracted, underscoring how a mix of regulatory pressure, divestitures, and shrinking membership is reshaping the country's largest health insurer."
"United executives also pointed to full‑year 2025 revenue of about $447.6 billion, up 12% year-over-year, and guided investors to at least $17.75 in adjusted earnings per share for 2026, implying high‑single‑digit profit growth even as the top line dips. The company highlighted efforts to refocus on core markets, tighten pricing to reflect higher medical trends, and streamline Optum's operations under new leadership, steps it says will support margin expansion over time."
UnitedHealth warned that 2026 revenue will be greater than $439 billion, implying roughly a 2% decline from the prior year and marking the first annual revenue contraction since the late 1980s. The company reported full‑year 2025 revenue of about $447.6 billion, up 12% year‑over‑year, and provided adjusted EPS guidance of at least $17.75 for 2026. Management cited regulatory pressure, divestitures, and shrinking membership as drivers of the topline dip and outlined plans to refocus on core markets, tighten pricing for higher medical trends, and streamline Optum to support margin expansion. The stock fell about 20%, dragging down peers and reflecting investor reassessment of Medicare Advantage risks.
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