UnitedHealth Group's Earnings Miss Expectations, Stock Plummets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Disappointing Earnings: UnitedHealth Group reported adjusted earnings per share of $2.11 for Q4, meeting expectations, but its revenue of $113.2 billion fell short by $520 million, indicating pressure in the Medicare market.
- Significant Industry Impact: The proposed flat reimbursement rates for Medicare Advantage led to a ~12% drop in UnitedHealth's stock and a ~14% decline for Humana, reflecting the challenges faced by the entire managed care sector.
- Bleak Future Outlook: The company projects adjusted earnings per share exceeding $17.75 for 2026, aligning with analyst expectations, yet its revenue forecast of over $439 billion falls short of the consensus of $456 billion, indicating sluggish growth.
- Investor Confidence Shaken: Analysts noted that UnitedHealth's earnings represent a poor start to the new year, suggesting shareholders may endure further pain after a ~30% decline in stock value in 2025, contributing to a pessimistic market sentiment.
Analyst Views on UNH
Wall Street analysts forecast UNH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNH is 397.82 USD with a low forecast of 330.00 USD and a high forecast of 444.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 356.260
Low
330.00
Averages
397.82
High
444.00
Current: 356.260
Low
330.00
Averages
397.82
High
444.00
About UNH
UnitedHealth Group Incorporated is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. Optum Health offers comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being. Optum Health delivers primary, specialty and surgical care; helps patients and providers navigate and address complex, chronic and behavioral health needs. Optum Insight connects the healthcare system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the healthcare system. Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies and the provision of in-home and community-based infusion services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
