UnitedHealth reported stronger-than-expected profits for the last quarter of 2024, yet Wall Street was caught off guard by a persistent rise in medical expenses and the utilization of care.
After the health care corporation shared its first financial results since the shocking shooting of one of its executives outside a New York hotel, its stock experienced a decline early Thursday. This incident resonated deeply across the nation, tapping into widespread frustrations surrounding access to healthcare.
During a call with analysts on Thursday morning, UnitedHealth’s management began by expressing their gratitude for the condolences received following the death of Brian Thompson, the CEO of its UnitedHealthcare unit, on December 4.
“Brian played a crucial role in molding this company and built lasting, reliable relationships over two decades. The positive influence he had on people will endure for many years,” stated Chief Financial Officer John Rex.
In the recently concluded fourth quarter, a striking 87% of the premiums UnitedHealth collected were allocated to cover medical costs, a figure that exceeded expectations, according to TD Cowen analyst Ryan Langston.
UnitedHealth indicated that it continued to grapple with rising costs, particularly from expensive specialty medications, alongside other financial pressures discussed in prior quarters. Their net income saw a slight climb to $5.54 billion for the quarter, while adjusted earnings came in at $6.81 per share. Total revenue rose by about 7%, reaching $100.8 billion, although this figure fell short of forecasts. Analysts had anticipated earnings of $6.73 per share with total revenue of $101.6 billion, as per FactSet data.
As the largest health insurer in the United States, UnitedHealth operates through its UnitedHealthcare segment, providing coverage for over 49 million Americans. Additionally, it runs a significant pharmacy benefit manager that oversees prescription drug coverage and has been expanding its care delivery and technical support services.
For the entire year, the company’s profit saw a substantial decline of 36%, dropping to $14.4 billion in 2024, marking the first decrease after nearly a decade of annual profit growth. Part of this downturn was attributed to the financial fallout from a major cyberattack that impacted its Change Healthcare division earlier in the year.
Based in Minnetonka, Minnesota, UnitedHealth shocked the market last year by announcing unprecedented medical cost increases for the fourth quarter of 2023. Subsequently, it revealed the cyberattack that disrupted its operations and incurred over $2 billion in direct costs.
In early December, Thompson was tragically killed while en route to the company’s annual investor meeting in midtown Manhattan. The suspect, 26-year-old Luigi Mangione, has been charged at both federal and state levels.
According to prosecutors, Mangione, who was not a client of UnitedHealthcare, was found with a notebook that contained resentful sentiments toward the health insurance sector and affluent executives upon his arrest.
The shooting incident sparked an outpouring of public dissatisfaction with insurance companies. A survey conducted shortly after the event indicated that many Americans felt that the profit motives of health insurance providers or coverage denials were partially to blame for Thompson’s death.
Following Thompson’s assassination, UnitedHealth’s stock, a part of the Dow Jones Industrial Average, suffered a decline, dropping nearly 4% over the year. After experiencing a rally earlier in 2025, the stock fell approximately $8 to $535.23 just before the market opened on Thursday.
