UnitedHealth Group Stock Plunges 11.19% After Suspending 2025 Outlook

On May 13, 2025, UnitedHealth Group's stock experienced a significant drop of 11.19% in pre-market trading.

UnitedHealth Group's decision to suspend its 2025 outlook has sent shockwaves through the market. The company cited unexpected increases in medical expenses as the primary reason for this move. This announcement has raised concerns among investors about the company's financial health and future performance.

In addition to the suspension of its outlook, UnitedHealth Group has also announced a change in leadership. Stephen J. Hemsley has been appointed as the new CEO, replacing Andrew Witty. This leadership transition comes at a critical time for the company as it navigates through the challenges posed by rising medical costs.

The company has indicated that it expects medical expenses to remain elevated until 2026, at which point it anticipates a return to growth. This prolonged period of high medical costs has added to investor uncertainty, contributing to the significant drop in the company's stock price.