Cyberattack Tempers UnitedHealth's Strong Q2 Outlook

UnitedHealth Group exceeded second-quarter expectations but expressed caution about its annual outlook due to a cyberattack that impacted its Change Healthcare business. The company's shares fell nearly 2% in early morning trading following the announcement of increased business disruption costs from the attack. UnitedHealth's net income decreased by 23% to $4.22 billion in the second quarter, with adjusted earnings reported at $6.80 per share on $98.85 billion in revenue. The cyberattack disrupted payment and claims processing nationwide, and the company has since restored most of the affected services. The total impact from the breach was estimated at 92 cents per share.

Looking ahead, UnitedHealth has revised its outlook for 2024, forecasting adjusted earnings between $27.50 and $28 per share, accounting for business disruption costs of 60 to 70 cents per share related to the February attack. Despite the challenges, the company remains focused on mitigating the effects of the cyberattack and continuing to serve its customers.