UnitedHealth Group reported $6.29 billion in profit for the first quarter of 2025, or $6.85 a share, far exceeding its performance in the same quarter a year ago. In the first quarter of 2024, the healthcare giant reported a loss of $1.41 billion, or a loss of $1.53 a share.
First-quarter 2025 revenue jumped 9.8% to reach $109.6 billion, up $9.8 billion from $99.8 billion a year ago.But UnitedHealth Group cut its earnings guidance after reporting higher-than-expected care costs in its Medicare Advantage businesses, "far above" the planned 2025 increase. The "heightened care activity indications within UnitedHealthcare’s Medicare Advantage businesses" became "visible as the quarter closed," the company said in an earnings press release issued Thursday morning.
"This activity was most notable within physician and outpatient services," the company said.
UnitedHealth Group cut its outlook to net earnings of $24.65 to $25.15 per share for the year and adjusted earnings of $26 to $26.50 per share for 2025. That's down from previous guidance of net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30 per share.
The company also cited "unanticipated changes in the profile of Optum Health members impacting planned 2025 reimbursement due to unexpectedly minimal 2024 beneficiary engagement by plans exiting markets."
Further, executives cited "greater-than-expected impact to current and new complex patients from the ongoing Medicare funding reductions enacted by the previous administration."
“UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%,” said Andrew Witty, CEO of UnitedHealth Group, in a statement.
"The company believes these factors to be highly addressable over the course of this year as well as it looks ahead to 2026," executives said in the press release.
UnitedHealth Group reported adjusted earnings of $7.20 a share for the quarter.
Both first-quarter revenue and earnings missed Wall Street analysts' expectations. Analysts had been expecting adjusted earnings of $7.29 per share for the quarter and revenue of $111.58 billion, according to FactSet.
UnitedHealth shares fell 19% in premarket trading Thursday.
The company is holding a call with investors at 8:45 am ET to review its first-quarter financial performance.
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