UnitedHealth has taken a serious hit after its latest earnings report, with stock falling more than 22.4% during last Thursday's United States trading session.
This marked its worst trading day since 1998, as the health insurance company fell short of Wall Street estimates.
The first quarter earnings report saw adjusted earnings per share come in at $7.20 versus $7.29 expected, while the company also revised its 2025 earnings guidance down to $26 from $30.
Revenue for the first quarter also fell around US$2 billion short of expectations, sitting a $109.6 billion, with high use of services from customers than expected cited as a driving factor, as its older customer base faces growing medical costs, and "unanticipated changes" in its Optum health services subsidiary.
“UnitedHealth Group started 2025 in two seemingly disparate ways: One, continued strong growth across our businesses,” said CEO Andrew Witty.
"Our people are providing more health benefits and services to more members and patients as the market responds to our distinct offerings. The other way, however, was an overall performance that was, frankly, unusual and unacceptable."
At the time of reporting (9:30 am AEST), UnitedHealth (NYSE: UNH) was trading at $425.33, down 6.3% Thursday's close of $454.11. UnitedHealth's market cap stands at $389.05 billion.
