UnitedHealth Group's First Quarter Financial Highlights

UnitedHealth Group Inc. has announced a significant 10% increase in revenue for the first quarter of 2025, reaching $109.6 billion. Despite this growth, the figures fell short of market estimates. The company reported net earnings of $6.5 billion, a notable recovery from a $1.2 billion loss in the same period last year. Diluted earnings per share (EPS) stood at $6.85, contrasting sharply with a loss of $1.53 per share in Q1 2024.

Updated 2025 Outlook

Looking ahead, UnitedHealth has revised its 2025 financial outlook, forecasting net EPS between $24.65 and $25.15, and adjusted EPS in the range of $26 to $26.50. CEO Andrew Witty acknowledged the company's challenges, stating, "We grew to serve more people more comprehensively but did not perform up to our expectations." He emphasized aggressive measures to address these issues and return to the long-term earnings growth target of 13% to 16%.

Market Reaction

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