UnitedHealth Group is attempting a comeback that has investors cautiously optimistic. The healthcare giant’s former CEO Stephen Hemsley returned to the helm in May 2025 after a sharp earnings miss and a leadership shake-up.
Hemsley signed a three-year contract and personally bought around $25 million in company shares. His action signals confidence to investors who include Berkshire Hathaway.
The company’s advisory group and major shareholders believe the turnaround strategy will focus on its health-services arm, Optum, and a planned exit from more than 100 underperforming Medicare Advantage plans serving roughly 600,000 members.
These moves come after UnitedHealth cut its full-year outlook and saw its share price fall sharply. Under new leadership, the goal is to return the insurance business to historical profit margins by 2026.
Analysts say the market will keep a close watch on Hemsley’s execution, especially whether the Medicare divestments, cost controls and service improvements translate into stronger results. If successful, UnitedHealth could restore investor trust and regain its footing.
