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United Healthcare CEO Brian Thompson Fatally Shot In Midtown Manhattan
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UnitedHealth Group tumbles after earnings miss, new guidance underwhelms

It now expects annual adjusted earnings at least $16 per share, less than the current analyst consensus of $20.64.

J. Edward Moreno

UnitedHealth slumped 5% in premarket trading after it reported second-quarter earnings that missed expectations along with disappointing full-year guidance, the latest blows after an tumultuous year for the insurance giant.

The company reported adjusted earnings per share of $4.08, compared to the $4.48 analysts polled by FactSet were expecting. It also reported revenue of $111.6 billion, a bit higher than the $111.5 billion analysts had anticipated.

The company also updated its guidance for the full year after pulling it last quarter. It now expects annual adjusted earnings of at least $16 per share, well short of the current consensus estimate for $20.64.

UnitedHealth attributed the profit squeeze to rising medical costs.

In April, the company said it expected to report adjusted 2025 earnings of between $26.00 and $26.50 per share. UnitedHealth pulled that guidance in May.

Shares are down more than 40% since the start of the year amid myriad travails for the healthcare industry in general and this insurer in particular.

Tuesday marks the company’s first earnings report since it had a leadership shake-up. In May, its former CEO, Andrew Witty, left and was replaced with Stephen Helmsley, who led the company from 2006 through 2017.

The industry has been hit with rising costs of care, and UnitedHealth specifically has been hit with investigations into its Medicare Advantage practices. The company disclosed last week that it is cooperating with the Department of Justice on a probe relating to that side of its business.

Smaller insurance companies that rely heavily on government-sponsored programs — including Centene, Molina Healthcare, and Elevance Health — have reported earnings in recent weeks that have disappointed Wall Street.

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Powering the positive earnings report was the company’s AI-related revenue, which grew 84% in the fourth quarter and now makes up over a third of total revenue. Investors seem to think the increased demand for servers could have trickle-down effects for other companies.

“The company’s results and commentary reinforced the outlook for strong AI-infrastructure demand while indicating resilient broader traditional server and storage spending,” wrote Woo Jin Ho, a senior technology analyst at Bloomberg Intelligence. “Lenovo’s $21 billion AI-server pipeline and remarks that demand is outpacing supply support Dell’s AI-demand momentum and point to robust orders.”

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Ross Stores surges as Q1 results beat expectations, full-year guidance raised

Ross shares are rising after the company delivered strong Q1 results, with sales topping Wall Street’s projections.

The stock soared 6.3% just after the open.

Key numbers:

  • Earnings per share of $2.02 vs. $1.47 year over year (estimate: $1.72).

  • Sales of $6.01 billion, up 21% year over year (estimate: $5.61 billion).

  • Comparable sales growth of 17% (estimate: 8.58%).

CEO Jim Conroy attributed the results to better traffic in stores. “Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers.”

The company also noted that transaction volume grew across all key demographics, including “income levels, ethnicities, and age groups, including younger customers.” Sales were also likely buoyed by standard seasonal tailwinds, including consumer spending from tax refunds.

Backed by the strong quarter, the company lifted its full-year targets. Ross now projects same-store sales growth of 6% to 7%, up from the prior forecast of 3% to 4%, topping Wall Street’s estimate of 4.64%. It boosted its annual EPS guidance to a range of $7.50 to $7.74, versus the prior outlook of $7.02 to $7.36.

Ross Stores has been one of the retail sector’s standout performers this year, rising around 20% year to date as of Thursday’s close.

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