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UnitedHealth 2025 Outlook Clouded by Heartbreaking Loss of Key Leader

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UnitedHealth Group Incorporated (UNH - Free Report) recently issued its 2025 financial outlook ahead of its annual Investor Conference. Sadly, it faced a devastating event when Brian Thompson, CEO of its UnitedHealthcare division, was fatally shot in a targeted attack outside the New York Hilton Midtown early Wednesday morning. The company, headquartered in Minnetonka, MN, expressed deep sorrow, calling Thompson a dear friend and colleague and pledging cooperation with the NYPD's investigation.

The attack comes as the company manages significant challenges, including regulatory scrutiny and a massive data breach affecting millions. The conference was ended early in the wake of Thompson's death.

What Was in the 2025 Financial Outlook?

UNH expects 2025 revenues in the range of $450-$455 billion. It projects 2025 adjusted net earnings to be $27.075-$27.675 billion, up from the 2024 estimated figure of $25.5-$25.775 billion. Furthermore, UnitedHealth expects 2025 adjusted earnings to be $29.50-$30 per share, up from the 2024 estimate figure of $27.50-$27.75.

It anticipates medical care ratio for 2025 at 86.5% (± 50 basis points). This Zacks Rank #3 (Hold) company expects 2025 operating cash flows to be within $32-$33 billion and capital expenditures at around $4 billion. The UnitedHealthcare business is expected to cater to 50.97-51.32 million people in 2025.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

UnitedHealth’s Win Against CMS

Last month, afederal judge in Texas ordered the Centers for Medicare and Medicaid Services (CMS) to recalculate UnitedHealth’s Medicare Star Ratings for 2025. The court found that CMS violated the Administrative Procedure Act by incorrectly flagging a test call to UnitedHealthcare's call center as unsuccessful, unfairly impacting the company's ratings.

The judge did not agree with UnitedHealthcare's argument that CMS applied a different standard to it than Elevance Health, Inc. (ELV - Free Report) in evaluating its call center performance. However, the ruling offered hope to other Medicare Advantage insurers, such as Humana Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) , as they contest their own star ratings.

On Monday, the CMS released revised ratings, boosting stars for 12 UnitedHealth contracts and seven Centene contracts.

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