Stock Market Today: Dow Falls As Fed Meeting Starts; UnitedHealth Crashes (Live) | Investor's Business DailyMUST-VIEW FOR INVESTORS: [See The Best Online Brokers For 2026]---The Dow Jones Industrial Average and other major stock indexes traded sharply mixed Tuesday, as the Federal Reserve's two-day policy meeting kicked off. An early loser was UnitedHealth Group (UNH), which plunged on the stock market today on disappointing Medicare reimbursement rates for 2027. On Tuesday, the Dow Jones Industrial Average ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

S&P 500 Nears Record. UnitedHealth Drags on the Dow.CONCLUDED[Stock Market News From Jan. 27, 2026: S&P 500 Hits Closing High]Last Updated:---Updated 9 hours ago# S&P 500 Nears Record. UnitedHealth Drags on the Dow.By[Connor Smith]The S&P 500 began Tuesday's session on track for a fifth day of gains, but UnitedHealth Group dragged down the Dow Jones Industrial Average.The S&P 500 was up 0.2%. The Nasdaq Composite was up 0.6%. The Dow Jones Industrial Average fell 400 points, or 0.8%."Following last night's ...

分组1 - UnitedHealth Group Incorporated (UNH) shares experienced a significant decline on January 26, just before the company was scheduled to report its Q4 financial results [1] - The drop in share price was attributed to market reactions to the upcoming earnings report [1] 分组2 - The article does not provide additional insights or data regarding the company's financial performance or market conditions [2][3]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $16.35 for 2025, slightly ahead of expectations, with a full-year revenue of nearly $448 billion, reflecting a 12% growth from 2024 [4][23] - For 2026, the company expects adjusted earnings per share to exceed $17.75, indicating a growth of at least 8.6% [6][24] - The medical care ratio for 2025 was 89.1%, slightly better than expected, while the operating cost ratio was 13.3% [23][25] Business Line Data and Key Metrics Changes - UnitedHealthcare's medical cost trend for 2025 was approximately 7.5%, with an expectation of 10% for 2026 [9][85] - The company anticipates a contraction of 1.3 million to 1.4 million members in Medicare Advantage for 2026 due to competitive market dynamics [10][11] - Medicaid membership is expected to contract by approximately 565,000 to 715,000 members due to reduced eligibility and state funding shortfalls [11][12] Market Data and Key Metrics Changes - The company expects continued pressure in the Medicaid business in 2026, driven by state funding shortfalls and elevated medical trends [11][12] - The commercial market is expected to see a contraction in fully insured group and individual enrollment, partially offset by growth in self-funded offerings [13][14] Company Strategy and Development Direction - The company is focusing on operational discipline, leveraging technology and AI, and renewing its commitment to innovation and accountability [4][6] - There is a strategic refocus on integrated value-based care, with plans to align Optum Financial Services with Optum Insight to enhance healthcare technology and financial technology innovation [7][18] - The company aims to improve margins and operational performance through pricing adjustments and cost management efforts [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover margins and improve performance in 2026, despite challenges in Medicare and Medicaid funding [6][10] - The company is committed to enhancing customer experience and satisfaction through AI-enabled operational improvements [14][21] - Management emphasized the importance of execution and operational focus to achieve long-term growth and stability [28][80] Other Important Information - The company plans to invest nearly $1.5 billion in technology and innovation in 2026, with expectations for continued investment in 2027 [29][30] - A significant charge of $1.6 billion in 2025 was primarily related to restructuring and optimization efforts within Optum [5][23] Q&A Session Summary Question: Decline in traditional MA lives and future margins - Management acknowledged the decline in Medicare Advantage lives and indicated that margin recovery efforts are underway, with expectations for improvement in 2026 and beyond [33][39] Question: Fourth quarter Optum Health performance - Management noted that fourth quarter results were slightly disappointing due to restructuring actions but expressed confidence in future stability and performance improvements [42][45] Question: Medicaid rate relief and margin assumptions - Management confirmed expectations for some margin contraction in Medicaid due to ongoing dislocation of rates and elevated medical trends, despite some rate relief [56][57] Question: Optum Rx membership growth and client retention - Management highlighted strong performance in Optum Rx, with a successful selling season and high retention rates, contributing to modest earnings growth expectations for 2026 [60][66] Question: Breakdown of commercial risk lives decline - Management indicated that the largest share of membership decline is connected to the exchange business, with expectations for margin recovery in 2026 [71][73]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $16.35 for 2025, slightly ahead of expectations, with a full-year revenue of nearly $448 billion, reflecting a 12% growth from 2024 [4][24] - The 2026 outlook anticipates adjusted earnings per share of greater than $17.75, indicating a growth of at least 8.6% [6][25] - The medical care ratio for 2025 was 89.1%, slightly better than expected, while the operating cost ratio was 13.3% [24][26] Business Line Data and Key Metrics Changes - UnitedHealthcare's Medicare segment experienced a medical cost trend of approximately 7.5% in 2025, with expectations of a 10% trend for 2026 [9] - The company anticipates a contraction of 1.3 million to 1.4 million members in Medicare Advantage for 2026 due to competitive market dynamics [10] - Optum is expected to see adjusted earnings growth across all three segments, with growth rates ranging from low to high single digits [15][16] Market Data and Key Metrics Changes - The Medicaid business is projected to face incremental pressure in 2026 due to state funding shortfalls, with expected membership contraction of approximately 565,000 to 715,000 [11] - The commercial pricing and cost management efforts have been aligned with increased care activity for 2026, with expectations of margin recovery [12][13] Company Strategy and Development Direction - The company is focusing on operational discipline, leveraging technology and AI, and renewing its commitment to innovation and accountability [4] - A strategic refocus on integrated value-based care is emphasized, with plans to align Optum Financial Services with Optum Insight [7][19] - The company aims to invest nearly $1.5 billion in 2026 to enhance operational capabilities and drive growth [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to historical earnings quality and growth, despite challenges such as Medicare funding reductions and rising medical costs [6][8] - The company is committed to improving customer experience and operational efficiency through AI and machine learning [14][21] - Management highlighted the importance of transparency and accountability in operations, with plans to publish performance metrics in 2026 [31] Other Important Information - The company reported a $1.6 billion net charge primarily related to restructuring and other actions, which is expected to set a solid foundation for future performance [5][22] - Cash flows for 2025 were strong at $19.7 billion, approximately 1.5 times net income, supporting the company's financial stability [24] Q&A Session Summary Question: Decline in traditional MA lives and future margins - Management acknowledged the decline in Medicare Advantage lives and indicated that margin recovery efforts are underway, with expectations for improvement in 2027 [34][36] Question: Fourth quarter Optum Health performance - Management noted that fourth quarter results were slightly disappointing due to restructuring actions but expressed confidence in future stability and performance improvements [43][46] Question: Medicaid rate relief and margin assumptions - Management confirmed expectations of some margin contraction in Medicaid due to ongoing dislocation of rates and elevated medical trends, despite some rate relief [57] Question: Optum Rx performance and new clients - Management highlighted strong performance in Optum Rx, with 800 new clients acquired, driven by affordability, transparency, and execution [61][66] Question: Breakdown of commercial risk lives decline - Management indicated that the largest share of the membership decline is connected to the exchange business, with expectations for margin recovery in 2026 [72][75]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $16.35 for 2025, slightly ahead of expectations, excluding a $1.6 billion net of tax charge [5][24] - For 2026, the company expects adjusted earnings per share to exceed $17.75, indicating a growth of at least 8.6% [6][25] - Revenues for 2025 were nearly $448 billion, reflecting a 12% growth from 2024 [24] Business Line Data and Key Metrics Changes - UnitedHealthcare's medical cost trend for 2025 was approximately 7.5%, with an expectation of 10% for 2026 [9][84] - The company anticipates a contraction of 1.3 million to 1.4 million members in Medicare Advantage for 2026 due to competitive market dynamics [10] - Medicaid membership is expected to contract by approximately 565,000 to 715,000 members due to reduced eligibility and state funding shortfalls [11] Market Data and Key Metrics Changes - The company expects both fully insured group and individual enrollment to contract in 2026, partially offset by growth in self-funded offerings [13] - The commercial risk lives decline is primarily attributed to the exchange business, with an expected loss of over 500,000 members [71] Company Strategy and Development Direction - The company is focusing on operational discipline, leveraging technology and AI, and aligning its services to better serve the U.S. health system [5][6] - There is a strategic refocus on integrated value-based care, with plans to enhance operational efficiencies and improve patient outcomes [20][21] - The integration of Optum Financial Services with Optum Insight aims to create a more modern healthcare transaction system [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to historical earnings quality and growth, emphasizing the importance of operational focus and execution [30][31] - The company acknowledges challenges from Medicare funding reductions and rising medical costs but believes that strategic actions will lead to improved performance [6][10] - Management is committed to transparency and accountability, with plans to publish performance metrics and independent reviews [32] Other Important Information - The company plans to invest nearly $1.5 billion in technology and innovation in 2026 [31] - The operating cost ratio for 2026 is expected to be 12.8%, reflecting disciplined cost management and productivity initiatives [26] Q&A Session Summary Question: Decline in Medicare Advantage lives and future margins - Management indicated that the focus for 2026 is on margin recovery rather than membership targets, with expectations of a 50 basis point improvement in Medicare Advantage margins [34][40] Question: Fourth quarter performance of Optum Health - Management acknowledged underperformance in the fourth quarter due to restructuring actions but expressed confidence in a more stable performance moving forward [43][46] Question: Medicaid rate relief and margin assumptions - Management expects some margin contraction in Medicaid due to ongoing rate dislocation and elevated medical trends, projecting rate increases of 6%-7% for 2026 [57] Question: Optum Rx performance and new clients - Management highlighted strong performance in securing new clients, attributing success to affordability, transparency, and execution [65][66] Question: Breakdown of commercial risk lives decline - The largest share of the expected decline in commercial risk lives is linked to the exchange business, with a focus on margin recovery for 2026 [71][72]

UnitedHealth Group (NYSE:UNH) stock is already under pressure after the U.S. Centers for Medicare & Medicaid Services on Monday signalled essentially unchanged rates for Medicare insurers next year.On Tuesday, the insurance mammoth reported fourth-quarter 2025 earnings and fiscal 2026 guidance.The company reported adjusted earnings of $2.11, down from $6.81 a year ago, beating the consensus of $2.10. Revenues increased 12% year over year to $113.215 billion, missing the consensus of $113.817 billion.The rep ...

U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Tuesday.Shares of Humana Inc (NYSE:HUM) fell sharply in pre-market trading.Health insurer stocks traded lower following a report indicating the Trump administration will propose essentially unchanged rates for Medicare insurers next year.The Trump administration reportedly plans to propose "roughly flat" rates for Medicare insurers in 2027, setting up payments to plans to increase by approximately 0.09% next year, accord ...

Market Analysis by covering: Humana Inc. Read 's Market Analysis on Investing.com ...