From Yahoo Finance: 2025-04-17 17:38:00

UnitedHealth, a reliable company for investors, missed earnings estimates for the first time since 2008, causing its worst one-day selloff in over 25 years. Revenue was $2 billion below expectations due to rising medical costs and changes in its Optum health services subsidiary. Analysts remain puzzled by the earnings miss.

Investors initially thought the earnings miss was industry-wide, but rivals like Elevance Health maintained profit forecasts. UnitedHealth shares plummeted over 22%, losing $120 billion in market value, the largest drop since 1998. The company faced challenges like a cyberattack and the murder of its insurance unit head, Brian Thompson.

Surprise was expressed over Optum unit’s performance, affected by changes in 2025 reimbursements. Wall Street watches competitors like Humana, a top provider of Medicare Advantage plans, whose shares fell 7%. Analysts note negative trends and industry challenges contributing to the situation.



Read more at Yahoo Finance: UnitedHealth was a reliable earnings performer