UnitedHealth Group’s earnings slightly beat estimates last quarter, but its shares fell 19.6% after forecasting a decline in revenue for 2026.
Earnings per share were US$2.11, above LSEG estimates of $2.10 but falling from $6.81 one year ago. Revenue was $113.22 billion, under estimates of $113.82 billion but climbing from $100.81 billion.
“We confronted challenges directly and finished 2025 as a much stronger company, giving us the momentum to better serve those who count on us and continue to improve our core performance,” said CEO Stephen Hemsley.
The company’s 2026 guidance includes revenue of at least $439 billion, which would be a 2% year-over-year drop. This is due to “planned right-sizing across the enterprise,” UnitedHealth said.
UnitedHealth plans around $1 billion in cost reductions during 2026, part of its plans to divest from assets and cut insurance plan members to restore its profitability. Net divestitures added $442 billion to its net earnings this year, it said, while restructuring costs were $2.52 billion.
It also incurred $799 million in costs this year from the aftermath of a cyberattack in 2024.
Earnings from operations were $19.0 billion last quarter, down 41%. Its UnitedHealthcare segment’s earnings from operations fell 41%, and Optum’s dropped 43%.
The company’s earnings come the same week that Hemsley and more than 60 other CEOs of Minnesota-based businesses signed a letter calling for the “immediate deescalation of tensions” in Minneapolis after immigration agents fatally shot American nurse Alex Pretti. UnitedHealth is headquartered in Eden Prairie, Minnesota, a suburb of Minneapolis.
UnitedHealth Group (NYSE: UNH) shares fell 19.6% to $282.70, before climbing 0.2% after-hours. Its market capitalisation is $256.08 billion.
