UnitedHealth said its earnings for 2025 will likely fall short of Wall Street’s early expectations, a projection that disappointed investors and underscored worries about the insurance industry’s core Medicare business.

The company also trimmed the higher end of its 2024 adjusted profit forecast by 25 cents to $27.75 per share, partially due to a hit of 10 cents per share related to the February cyberattack on UnitedHealth's technology unit, Change Healthcare.

UnitedHealth’s shares dropped as much as 3.9% before US markets opened, as higher medical costs and the Change Healthcare cyberattack weighed on earnings.

UnitedHealth's lower 2025 earnings outlook than expected leads to a sell-off, affecting its managed care rivals like Humana and CVS Health.

UnitedHealth Group expects its 2025 adjusted profit to be as much as $30 per share, CEO Andrew Witty said on Tuesday, setting the upper end of the health insurer's forecast below Wall Street estimates.