Sun Life Financial stock prices dropped by 8% after the company reduced its 2025 profit projection for its U.S. dental operations because of Medicaid funding unpredictability.
The Canadian company purchased DentaQuest for $2.5 billion in 2022 to enter the market but now predicts its dental earnings will remain below $100 million for this year. The company attributed its reduced earnings to delayed state contract talks and increased Medicaid claim expenses.
The future growth of Sun Life’s U.S. operations faces potential challenges because analysts predict that President Donald Trump’s proposed Medicaid budget cuts will occur. The dental unit represents a third of Sun Life’s U.S. earnings although it currently faces operational challenges.
