UnitedHealth Group Reports Q1 2025 Results, Lowers Full-Year Outlook Amid Care Cost Pressures

UnitedHealth Group posted first quarter 2025 earnings of $6.85 per share, or $7.20 per share on an adjusted basis, as it reported $109.6 billion in revenue, a $9.8 billion increase year over year. The company also revised its full-year 2025 earnings guidance downward due to higher-than-anticipated costs and changing patient dynamics.

The updated forecast now projects full-year net earnings between $24.65 and $25.15 per share, with adjusted earnings expected in the range of $26 to $26.50 per share. This compares to prior estimates set in December 2024.

The revision is driven by two key developments:
- An unexpected spike in care activity within UnitedHealthcare’s Medicare Advantage population, particularly in outpatient and physician services, exceeding planned levels.
- Shifts in Optum Health’s member profile and reimbursement expectations, due in part to limited engagement by beneficiaries from plans exiting markets and broader impacts of Medicare funding cuts initiated under the previous administration.

Despite these challenges, UnitedHealth Group highlighted strong growth in member volume, with 780,000 additional consumers served year to date by UnitedHealthcare, and continued expansion in value-based care at Optum Health, which remains on track to reach 650,000 new patients in 2025.

CEO Andrew Witty acknowledged performance shortfalls but emphasized corrective measures are underway, with the goal of returning to the company’s long-term earnings growth target of 13% to 16%.