UnitedHealth shares are sinking as the insurer cuts its 2025 outlook

UnitedHealth slumped ~20% in premarket trading after posting disappointing results for the first quarter and lowering its profit forecast for the year.

In its Q1 and revised outlook report this morning, the healthcare and insurance giant revealed that heightened demand for its Medicare Advantage plans — used mostly by customers over the age of 65 — was “far above” expectations, weighing more heavily than expected on the company’s earnings so far in 2025.

While revenues for the first quarter rose to $109.6 billion, up $9.8 billion compared to the same period last year, and operating earnings climbed $1.2 billion in the same time frame, the company cut its net earnings per share forecast to $24.65 to $25.15 — down from its estimates of $28.15 to $28.65 in December.

Humana, Cigna, and Elevance Health were also down premarket.