UnitedHealth Group reported strong Q3 2025 results with a 12% revenue increase to $113.2 billion, raised its full-year earnings forecast to at least $14.90 per share, and demonstrated solid growth in UnitedHealthcare and Optum segments, reflecting ongoing strategic execution and focus on future growth.
Despite an optimistic revenue forecast for the third quarter driven by demand for AI and PC processors, AMD's stock fell after-hours due to concerns over the absence of Chinese sales in the guidance, stemming from ongoing licensing issues with the US government. The company expects to benefit from new AI chips and market share growth, but uncertainties around China sales and inventory adjustments have impacted investor confidence.
UnitedHealth reported weaker-than-expected Q2 results due to rising medical costs and lowered its full-year earnings outlook, with plans to increase premiums significantly in 2026 to offset these costs. The company's stock has fallen sharply this year, but it remains financially strong despite regulatory risks and industry struggles.
Texas Instruments' stock dropped over 10% after its Q3 revenue outlook fell below Wall Street estimates, despite strong Q2 results and growth driven by automotive and industrial markets. The company reported better-than-expected Q2 revenue and earnings but guided Q3 revenue slightly below consensus, leading to a significant stock decline.
Texas Instruments' strong Q2 results were partly due to tariff pull-ins, but the company issued a cautious Q3 outlook affected by macroeconomic conditions and tariffs, leading to a decline in early market trading.
Texas Instruments beat Q2 earnings but issued a weaker outlook, causing its stock to fall over 7% in after-hours trading despite a recent positive growth trend and a strong Q1 report, reflecting cautious investor sentiment in the semiconductor sector.
HelloFresh shares plummeted 42% after the company issued a disappointing earnings outlook for 2024, with analysts expressing concern over elevated customer acquisition costs and the removal of previously announced targets for 2025. The Berlin-based firm expects adjusted EBITDA to decrease in 2023 and 2024 due to increased production capacity and marketing expenses, despite a forecast for higher revenue from the North American market. The company's annual results are set to be released on March 15.
Cadence Design Systems beat fourth-quarter earnings expectations but missed sales and earnings guidance for the current quarter, causing its stock to fall more than 6% in after-hours trading. The company's full-year guidance, however, exceeded Wall Street's estimates. CEO Anirudh Devgan expressed optimism about future opportunities in AI and 3D IC. Despite the disappointing outlook, CDNS stock remains on three IBD stock lists and ranks third in IBD's Computer Software-Design industry group.
The S&P 500 has surpassed the 5,000 level for the first time, but its valuation has also soared to 20.4 times forward price-to-earnings ratio, well above the historic average of 15.7. While some investors remain cautious, others believe that high valuations can persist for a while. Rising Treasury yields and stable profit expectations for 2024 have contributed to the market's expensive valuation, with some experts cautioning that the current level may precede subpar performance. However, the index's valuation is influenced by the heavy weighting of its largest stocks, and there are fewer signs of speculative excesses seen in past market turning points.
Wells Fargo analyst downgrades Warner Bros. Discovery stock, citing lower earnings outlook and less favorable M&A prospects, with a shift towards licensing content to services like Netflix. The analyst also highlights the challenges of acquiring a peer and the potential impact on the company's engagement and revenue.
Humana's stock plummeted 11% to a nearly two-year low after cutting its earnings forecast and reporting sluggish growth in its Medicare Advantage plans for 2024. The company's higher-than-expected medical costs and lower-than-anticipated new plan additions contributed to the disappointing outlook, causing a ripple effect on other managed care stocks like UNH, CVS, Centene, Molina Healthcare, Elevance Health, and Cigna. Humana's warning on inpatient and outpatient costs, along with its balanced approach to pricing, led to a 1.8% growth projection for Medicare Advantage in 2024, significantly trailing industry growth.
Cisco Systems reported better-than-expected quarterly results, with revenue rising 7.6% YoY to $14.67 billion and net income increasing to $3.64 billion. However, the company slashed its fiscal year earnings outlook due to consumers being busy implementing previously received offerings. This weak guidance overshadowed the positive results, causing Cisco's shares to fall by as much as 13%. The company also announced partnerships with Splunk and Nvidia to enhance workplace collaboration and unveiled new AI-powered products. Cisco is confident in gaining $1 billion worth of AI infrastructure orders from cloud providers by 2025.
CVS Health reports a 10.3% increase in quarterly revenue, beating analysts' estimates, but its stock trades lower; Carlyle Group shares drop over 6% after posting a loss and halved revenue; Humana's stock rises over 5% as it raises its membership growth forecast for 2023 and notes stabilizing claims activity.
American Airlines shares fell as the company's second-half earnings outlook disappointed investors, despite lifting its full-year profit forecast and reporting higher-than-expected quarterly earnings. The outlook suggested a slowdown in earnings for the second half compared to the first six months of the year, leading to concerns among analysts. Additionally, concerns were raised about potential increases in non-fuel costs after the company reopened negotiations with its pilots, and worries about the company's ability to offset cost pressure as its revenue forecast indicated a decline in ticket prices for domestic travel. American Airlines' shares closed down 6.2% at $17.44.