5 Must-Read Analyst Questions From UnitedHealth's Q1 Earnings Call

UnitedHealth began 2025 with a sharp divergence between underlying business growth and overall performance, prompting a significant negative market reaction. Management attributed the quarter’s shortfall mainly to a faster-than-expected rise in care activity within its Medicare Advantage segment and unforeseen changes in member profiles at Optum Health. CEO Andrew Witty described the results as “unusual and unacceptable,” highlighting that more frequent physician and outpatient visits—especially among group retirees facing premium hikes—drove costs higher than anticipated. Additionally, complexity in adapting to new CMS risk model changes hampered operational execution and revenue recognition.

Is now the time to buy UNH? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions UnitedHealth’s Q1 Earnings Call

• Justin Lake (Wolfe Research) pressed for specifics on Medicare Advantage utilization trends and margin expectations; management reiterated that elevated care activity is concentrated in the senior segment and is assumed to persist through 2025 and into 2026.

• Josh Raskin (Nephron Research) asked why higher care utilization is impacting Optum Health despite its control over primary care; CEO Andrew Witty and Dr. Amar Desai explained that follow-on specialty care and member profile shifts, particularly from plan exits, were greater than anticipated.

• AJ Rice (UBS) questioned whether benefit and premium changes, rather than utilization, were the main driver of cost increases in group Medicare Advantage; management clarified that premium hikes did influence behavior, but some trends also affected individual plans.

• Lisa Gill (JPMorgan) inquired about the path back to UnitedHealth’s long-term earnings growth targets post-V28; Witty expressed confidence that most issues could be addressed in 2025, positioning the company for a return to target growth rates in 2026.

• Erin Wright (Morgan Stanley) sought updates on PBM reform and Medicaid funding risks; executives emphasized recent transparency initiatives in pharmacy benefit management and ongoing engagement with state Medicaid programs to align funding with member needs.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) whether care utilization in Medicare Advantage stabilizes or remains elevated, (2) if operational improvements in patient engagement and risk adjustment translate into better revenue recognition and cost control, and (3) the impact of regulatory changes—including CMS rate updates and potential drug pricing reforms—on reimbursement and profitability. Progress on digital engagement and technology deployment will also be key markers of execution.

UnitedHealth currently trades at $307.52, down from $585.42 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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