UnitedHealth Group Inc. (NYSE:UNH) saw a 19.61% drop in share prices on Tuesday, closing at $282.70 each due to a weaker 2026 outlook and disappointing Medicare Advantage payment rates. CMS announced a mere 0.09% increase in payments next year, impacting insurers’ profit margins. UNH also lowered its 2026 revenue outlook to $439 billion, a 2% decrease year-on-year.

UNH attributed the revised outlook to recent actions taken, including operating disciplines and commitment to helping people live healthier lives. The company expects margin stability and growth across all segments as it continues executing its long-term strategy. Despite UNH’s potential, some AI stocks may offer higher returns with limited downside risk, according to analysts.

Read more at Yahoo Finance: UnitedHealth (UNH) Loses 19.6% on Weak Outlook, Medicare Payment Update