Business

UnitedHealth Group Surpasses $109.6B in Q1 Revenue Despite Missing Estimates

UnitedHealth Group Reports Significant Revenue Growth

UnitedHealth Group Inc. has announced a notable 10% increase in its first-quarter revenue for 2025, reaching $109.6 billion. Despite this growth, the figures fell short of market estimates. The healthcare behemoth also reported a turnaround from a $1.2 billion loss in the first quarter of 2024 to net earnings of $6.5 billion.

Earnings Per Share and Future Outlook

The company's diluted earnings per share (EPS) stood at $6.85, a significant recovery from a $1.53 loss per share the previous year. Looking ahead, UnitedHealth has updated its 2025 outlook, projecting net EPS between $24.65 and $25.15, and adjusted EPS in the range of $26 to $26.50.

Leadership's Perspective on Performance

CEO Andrew Witty acknowledged the company's expanded service offerings but admitted that performance did not meet internal expectations. "We are aggressively addressing these challenges to ensure strong positioning for future growth, aiming to return to our long-term earnings growth rate target of 13% to 16%," Witty stated.

Market Reaction

Following the earnings announcement, UnitedHealth's shares experienced an 11.12% drop in premarket trading, reflecting investor concerns over the missed estimates.