UnitedHealth Tumbles 10% After Suspending Outlook and Surprise CEO Exit

UnitedHealth Group shares plunge more than 10% on Tuesday after the company unexpectedly suspended its 2025 forecast and announced the surprise departure of CEO Andrew Witty. As the most expensive stock in the price-weighted Dow Jones Industrial Average, UnitedHealth's drop significantly weighed on the broader index.

Stephen J. Hemsley, who previously served as CEO from 2006 to 2017, has returned to lead the company effective immediately, following Witty’s decision to step down for personal reasons. Hemsley will also remain chairman of the Board of Directors, while Witty will continue to serve as a senior adviser to him.

“We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced,” Hemsley said. “The Board and I have greatly valued his leadership and compassion as chief executive and as a director, and we wish him and his family all the best.”

Looking ahead, Hemsley said he believes UnitedHealth can return to long-term growth of 13% to 16%.

The healthcare giant suspended its 2025 guidance as healthcare utilization continues to rise and expand across a broader range of benefit offerings than seen in the first quarter. Additionally, medical costs among many new Medicare Advantage enrollees have remained higher than expected.

UnitedHealth has had a tough year. In April, the company posted its first earnings miss since 2008 and significantly cut its annual profit forecast, citing unexpectedly high medical costs driven by a surge in demand for healthcare services under Medicare plans for seniors and individuals with disabilities. However, the situation appears to be more severe than previously anticipated.

Adding to public scrutiny, the company has also faced criticism following the December murder of Brian Thompson, the head of its insurance unit at the time, amid concerns over UnitedHealth’s handling of Medicare Advantage coverage.

Despite current challenges, UnitedHealth said on Tuesday it still expects to return to growth in 2026.