Fitch affirmed UnitedHealth Group’s “AA-” rating July 30 but revised the company’s outlook to negative from stable.
Fitch said the revision reflects new information disclosed by UnitedHealth during its second quarter earnings call held July 29.
“The company provided guidance on its significantly diminished operating performance for the remainder of 2025, which suggests that it will meet its financial leverage downgrade sensitivities for the year, with a partial recovery expected in 2026,” Fitch said.
UnitedHealth Group posted a net profit of $3.4 billion for the quarter ended June 30, down from $4.2 billion during the same period last year. The company also set new, lowered 2025 earnings guidance. UnitedHealth is now projecting net earnings of at least $14.65 per share and adjusted earnings of at least $16 per share.
Fitch said financial performance and earnings “is a high-influence key rating driver for UnitedHealth’s rating and was very strong until 2025.”
“Operating margins and overall profitability are pressured this year due to continued unexpectedly high trends in healthcare costs, driven by both elevated utilization and unit costs,” the ratings agency said. “Based on management guidance, Fitch estimates that the operating EBITDA margin will be approximately 6.5% in 2025, down from 9.8% in 2024.”
Fitch’s revision comes after Moody’s lowered UnitedHealth’s outlook in June to negative from stable, citing “a number of adverse trends simultaneously.”
UnitedHealth Group CEO Stephen Hemsley said on the company’s earnings call that they are taking on a “tone of change and reform.”
“As we continue to assess the state of our businesses, it is very apparent that some require a fundamental reorientation. Others require building and nurturing, and others must be reconsidered and redirected to original purpose,” Mr. Hemsley said. “We’re acutely aware we have an enormous responsibility for providing care for millions of people and for protecting the government and private programs we partner in. As such, we have embarked on a real cultural shift in our relationship with regulators and all external stakeholders.”
