UNH Guidance Shock Sends Shares Tumbling, CEO Promises 2026 Upswing
UnitedHealth Group shares fell 5% after new leadership set a full-year adjusted EPS target of at least $16.00 for fiscal 2025, significantly below analyst expectations. The previous guidance was $26.00-$26.50, and the new outlook is below the FactSet consensus of $20.64. However, CEO Stephen Hemsley projected earnings growth for 2026, which helped mitigate further declines. For Q2, adjusted EPS was $4.08, below the $4.48 consensus, with revenue slightly above estimates. Investors are keen on updates regarding cost controls and capital allocation.
July 29 - UnitedHealth Group shares slid 5% Tuesday after new leadership set a full?year adjusted earnings?per?share target well below analyst forecasts. The company now expects at least $16.00 in adjusted EPS for fiscal 2025, down sharply from the previously withdrawn guidance of $26.00$26.50.
That outlook trails the FactSet consensus of $20.64 and falls beneath investor expectations of $18.00$20.00. Still, comments on 2026 projections helped avert a steeper selloff: UnitedHealth forecasts a return to earnings growth next year.
Stephen Hemsley, who took the reins as CEO after Andrew Witty's departure, told analysts he anticipates solid to moderate EPS gains in 2026, with growth accelerating in 2027 and beyond.
For Q2, UnitedHealth reported adjusted EPS of $4.08 versus the $4.48 consensus, and revenue of $111.6 billion, just above the $111.5 billion estimate. Executives pointed to pricing errors in managed?care plans, where medical costs outpaced projections, as the main drag on guidance this year.
Investors will watch upcoming updates on cost controls and capital allocation as the company works to restore confidence and rebuild its market value.
