It’s almost hard to believe that less than a year ago, UnitedHealth (UNH) stock was trading at record highs.
But 2025 has been anything but kind to UnitedHealth, now at the center of a scandal CNBC has described as “billing fraud and patient abuse.”
The allegations stem from multiple federal investigations into UnitedHealth’s Medicare Advantage business — a program designed to allow private insurers to deliver more efficient care than traditional Medicare at a lower cost.
While the program had significantly boosted UnitedHealth’s profits, that success began to unravel when the Department of Justice launched an inquiry into the company’s billing practices.
Investigators allege that UnitedHealth manipulated diagnostic codes to secure higher payments under the program.
Public backlash against UnitedHealth has only intensified, with Americans growing more frustrated by the company’s alleged exploitation of patients.
Since then, the crisis has deepened. UnitedHealth’s chaotic first-quarter earnings report fell far short of expectations, prompting a steep downgrade to its full-year forecast.
UnitedHealth’s dismal 2025
UnitedHealth has suffered a brutal 2025, with shares collapsing after the company’s disappointing first-quarter earnings report.
Both profits and revenues came in well below consensus forecasts, sparking investor alarm.
The situation worsened when management issued a sharp downward revision to its full-year profit guidance, now projecting earnings between $26.00 and $26.50 per share, down from its previous estimate of $29.50 to $30.00.
“Nobody was expecting this level of a miss or cut to guidance,” according to Kevin Gade, the chief financial officer of Bahl & Gaynor.
Since releasing its Q1 results in mid-April, UnitedHealth shares have plunged 48%, now trading around $300.
The stock sits just 9% above its 52-week low, set on May 15, and is down 40% year-to-date. It’s now trading at less than half its all-time closing high from last November.
At current levels, UnitedHealth has a market capitalization of approximately $270 billion.
The one silver lining for shareholders: the company’s dividend growth remains intact. UNH currently yields 2.94%, with the last payment being issued on June 24.
Looking ahead, UnitedHealth is scheduled to report second-quarter earnings on July 29. According to Zacks Investment Research, per-share earnings are expected to decline 28% year-over-year.
The company is expected to maintain positive revenue growth in the second quarter, though at a slower pace than last year.
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