UnitedHealth reported a profit for the last quarter of 2024 that surpassed expectations, yet a persistent rise in medical expenses and increased care utilization caught many analysts off guard. Following the release of the financial results, shares of the healthcare juggernaut experienced a decline, marking its first financial update since the shocking incident involving the shooting of one of its executives outside a New York City hotel, which highlighted broader concerns regarding healthcare accessibility in America.
During a conference call with analysts, UnitedHealth’s leadership expressed gratitude for the condolences received following the tragic death of Brian Thompson, who was the CEO of the company’s UnitedHealthcare division. Chief Financial Officer John Rex spoke about Thompson’s legacy, emphasizing the significant, lasting impact he had while cultivating trusted relationships over his 20-year tenure with the company.
In the fourth quarter, more than 87% of the premiums collected by UnitedHealth were used to cover medical expenses, which exceeded analysts’ expectations according to TD Cowen analyst Ryan Langston. The company also navigated challenges such as rising prescriptions for costly specialty medications, reductions in its federally funded Medicare business, and other financial pressures that had been outlined in earlier earnings reports.
UnitedHealth saw its enrollment in state and federally funded Medicaid programs decrease by approximately 400,000 participants, with company leaders noting delays in state rate updates necessary to account for remaining beneficiaries. The adjusted earnings per share for the quarter reached $6.81, while revenues increased roughly 7% to $100.8 billion, although this figure fell short of market predictions. Analysts projected earnings at $6.73 per share and revenue at $101.6 billion, as per data from FactSet.
Operating as the largest health insurer in the nation, UnitedHealthcare covers over 49 million Americans. The company also provides pharmacy benefits and has developed a growing division focused on delivering care and providing technological support.
For the entire year, UnitedHealth’s profits diminished by 36% to $14.4 billion in 2024, following a decade of continual growth. This decline was partly attributed to costs linked to a significant cyberattack impacting its Change Healthcare unit early in the year. The Minnesota-based healthcare provider had previously surprised investors by reporting increased medical costs in the last quarter of 2023, after identifying the cyberattack that led to over $2 billion in direct response expenses.
The situation was further exacerbated when Thompson was tragically shot en route to the company’s annual investor meeting in Manhattan in early December. A 26-year-old suspect, Luigi Mangione, now faces both federal and state charges related to Thompson’s death. The incident sparked widespread public outrage regarding insurance companies, with a survey conducted shortly thereafter revealing that many Americans believe that the profit motives and coverage denials of insurers contributed to Thompson’s tragic murder.
As a result of these events, shares of UnitedHealth, a member of the Dow Jones Industrial Average, dropped following Thompson’s death, with share prices falling around 4% over the year. Although the stock had begun to recover in 2025, it fell nearly 5% to $517.76 on Thursday morning, mirroring trends observed with other large healthcare entities such as CVS Health and Cigna, which also saw declines in their stock prices.
