UnitedHealth's Revenue Outlook, Medicare Shock Spook Investors

UnitedHealth Group (NYSE:UNH) stock is already under pressure after the U.S. Centers for Medicare & Medicaid Services on Monday signalled essentially unchanged rates for Medicare insurers next year.

On Tuesday, the insurance mammoth reported fourth-quarter 2025 earnings and fiscal 2026 guidance.

The company reported adjusted earnings of $2.11, down from $6.81 a year ago, beating the consensus of $2.10. Revenues increased 12% year over year to $113.215 billion, missing the consensus of $113.817 billion.

The reported medical care ratio for fiscal 2025 was 89.1% which included a 20 basis point negative impact from loss contracts included in the charge, resulting in an adjusted medical care ratio of 88.9%, or an increase of 340 basis points year-over-year. Fourth quarter MCR stood at 92.4%.

The operating cost ratio for the year was 13.3%, while the adjusted ratio ...