Q2 was challenging. Management can address profitability by repricing, optimizing care strategies, and adjusting for higher member usage, though a turnaround will take several quarters. Despite regulatory scrutiny and operational challenges, the business remains profitable.
UnitedHealth Group (UNH) came out with quarterly earnings of $4.08 per share, missing the Zacks Consensus Estimate of $4.84 per share. This compares to earnings of $6.8 per share a year ago.
UnitedHealth Group profits fell to $3.4 billion in the second quarter as the giant provider of health benefits and services grapples with rising costs of providing health insurance to millions of Americans.
The company sees 2025 adjusted earnings of ‘at least' $16 a share and revenue in the range of $445.5 billion to $448 billion.
Shares of UnitedHealth Group (UNH) fell in premarket trading Tuesday after the health insurance giant's second-quarter profit came in worse than analysts had forecast.
UnitedHealth posted a smaller profit in its latest quarter while a metric favored by Wall Street came in below estimates.
UnitedHealth has reinstated full-year profit forecast that it pulled over two months ago, but its guidance fell short of analysts' already-lowered expectations, as the U.S. health insurer battles rising costs in its government-backed plans.
UNH leans on Optum's diversified growth and value-based care to counter insurance sector margin pressure in Q2.
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UnitedHealth (NYSE:UNH) is set to release its earnings on Tuesday, July 29, 2025. Analyzing the past five years of data, UNH stock has exhibited a trend of positive one-day returns after earnings announcements in 53% of cases.
UnitedHealth's second-quarter earnings comes two and a half months since Chairman and CEO Stephen Hemsley retook the role of chief executive. Investors will be watching for how Hemsley plans to stabilize the company's embattled Medicare Advantage program and Optum Health physician practices.
UnitedHealth Group's stock has plunged about 45% YTD, reflecting a series of structural headwinds. Wall Street sentiment is overwhelmingly negative, with analysts forecasting a 30%+ YoY EPS drop over the next three quarters and universally revising Q2 earnings estimates downward. Rising medical utilization and a surge in elective care have driven up costs, eroding profitability and signaling that the pandemic-era tailwinds are firmly in the past.