"UnitedHealth Group ( ) reported fourth-quarter and full-year 2025 earnings this morning that fell slightly short of analyst estimates, while offering guidance for the coming year that indicated a roughly 2% decline year-over-year due to its right-sizing efforts payment increase for Medicare Advantage plans in 2027 that was far below what was anticipated. The market's response was immediate, sending UnitedHealth's stock tumbling as much as 15% in premarket trading this morning."
"UnitedHealth shares have traded largely flat over the past eight months as the company navigates recovery from multiple challenges. The stock remains more than 40% below its level at the time of the December 2024 assassination of former UnitedHealthcare CEO Brian Thompson, when shares were over $600. Subsequent events, including ongoing effects from a 2024 cyberattack on subsidiary Change Healthcare and a Justice Dept. investigation into Medicare billing practices (which later shifted focus to OptumRx's pharmacy benefit management practices ) have contributed to the decline ."
"The fourth-quarter 2025 results showed revenues up 12% to $113.2 billion, but this missed Wall Street expectations by a small margin. Full-year revenues reached $447.6 billion, also up 12%, with adjusted earnings of $16.35 per share. However, the medical care ratio rose to 88.9% adjusted, up 340 basis points from 2024, indicating higher costs. The 2026 guidance forecasts revenues exceeding $439 billion, a 2% drop, with adjusted earnings above $17.75 per share and an improved medical care ratio of 88.8%."
UnitedHealth posted fourth-quarter and full-year 2025 results with revenue growth of 12% — $113.2 billion in Q4 and $447.6 billion for the year — and adjusted earnings of $16.35 per share. The medical care ratio rose to an adjusted 88.9%, up 340 basis points from 2024, reflecting higher costs. Guidance for 2026 projects revenues exceeding $439 billion, about a 2% decline year‑over‑year, and adjusted earnings above $17.75 per share with a slightly improved medical care ratio of 88.8%. A Medicare Advantage payment increase for 2027 was far below expectations, and the stock slid as much as 15% premarket amid recovery from a 2024 cyberattack and $2.8 billion in 2025 restructuring charges.
Read at 24/7 Wall St.
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