UNH Crashes 20% on 2026 Revenue Decline Forecast! What Price Is a Buy?
UnitedHealth Group plunged after guiding to its first annual revenue decline since 1989, with 2026 sales seen down ~2% and U.S. membership set to fall by over 3 million. While Q4 EPS narrowly beat expectations, revenue missed and policy pressure intensified as Centers for Medicare & Medicaid Services proposed minimal Medicare Advantage rate increases. Management is “shrinking to grow,” divesting overseas assets and cutting Optum Health capacity to lift margins, targeting 2026 EPS above $17.75.
Do you buy UNH’s “shrink-to-profit” strategy or stay cautious on insurers?