UnitedHealth reported a stronger-than-expected profit for the final quarter of 2024, but revenue fell short due to challenges such as Medicare funding cuts and a drop in Medicaid enrollment. The health care giant’s shares declined on Thursday following the release of its first financial report since the tragic shooting of one of its executives outside a hotel in New York City, which sparked national outrage and underscored public frustration over access to healthcare.
In the fourth quarter, UnitedHealth recorded earnings of $5.5 billion, with adjusted results amounting to $6.81 per share. Despite a 7% increase in revenue to $100.8 billion, the company’s performance did not meet analysts’ expectations. According to data from FactSet, analysts had anticipated earnings of $6.73 per share on revenue of $101.6 billion.
UnitedHealth, the largest health insurer in the nation through its UnitedHealthcare division covering over 49 million individuals, also operates a substantial pharmacy benefit manager overseeing prescription drug coverage, along with a growing care delivery and technical support business. However, the company experienced a decline of approximately 400,000 enrollees in its Medicaid program compared to the previous year, primarily due to states reassessing eligibility criteria following the impact of the COVID-19 pandemic.
The company cited an uptick in specialty drug prescriptions and other cost pressures as contributing factors to a slight decrease in net income to $5.54 billion for the quarter. UnitedHealth’s full-year profit saw a significant decline of about 36% to $14.4 billion.
UnitedHealth, headquartered in Minnetonka, Minnesota, had previously surprised investors with escalating medical costs in the final quarter of 2023. Subsequently, its Change Healthcare business fell victim to a significant cyberattack, incurring costs exceeding $1 billion. The company faced further tragedy when UnitedHealthcare CEO Brian Thompson was fatally shot en route to the annual investor meeting in Manhattan. The suspect, 26-year-old Luigi Mangione, is facing federal and state charges in connection with the incident.
Prosecutors revealed that Mangione, who was not a UnitedHealthcare client, carried a notebook expressing animosity towards the health insurance industry and affluent executives at the time of his arrest. The shooting prompted public outcry against insurance companies, with a post-incident survey indicating that a majority of Americans held health insurance profits or coverage denials at least partially responsible for Thompson’s death.
Following Thompson’s shooting, UnitedHealth’s stock, a component of the Dow Jones Industrial Average, experienced a decline and ultimately closed the year down approximately 4%. Although the stock had shown early gains in 2025, it dipped by 3% to $525 in premarket trading on Thursday.
