UnitedHealth Group issued a 2025 outlook that fell short of Wall Street’s expectations, as the company’s insurance unit continues to grapple with higher medical costs. Shares of UnitedHealth Group fell more than 4% in morning trading Tuesday. The company anticipates it will post 2025 adjusted earnings of at least $16 per share, with revenue of $445.5 billion to $448 billion. Wall Street analysts had expected 2025 adjusted profit of $20.91 per share, and full-year revenue of $449.16 billion, according to consensus estimates from LSEG.
On top of higher medical costs, the updated outlook removes about $1 billion from “previously planned portfolio actions” that the company is no longer pursuing. UnitedHealth Group said it expects to return to earnings growth in 2026. The stock tumbled in May after the company suspended that 2025 guidance due to elevated medical costs and announced the abrupt departure of former CEO Andrew Witty. The report adds to a growing string of setbacks for the company, which owns the nation’s largest and most powerful insurer, UnitedHealthcare.
UnitedHealth Group’s report signals that elevated medical costs in Medicare Advantage plans may not ease anytime soon for the broader health insurance industry. UnitedHealthcare, the insurance arm of UnitedHealth Group, is the nation’s largest provider of those privately run Medicare plans. Higher expenses in Medicare Advantage plans have dogged insurers over the past year as more seniors return to hospitals to undergo procedures they had delayed during the Covid-19 pandemic, such as joint and hip replacements.
UnitedHealth Group reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $4.08 adjusted vs. $4.48 expected
Revenue: $111.62 billion vs. $111.52 billion expected. The company posted net income of $3.41 billion, or $3.74 per share, for the quarter. Excluding certain items, adjusted earnings were $4.08 per share for the quarter.
UnitedHealth Group’s response to the Department of Justice investigation into its Medicare billing practices comes just days after UnitedHealth revealed it is complying with investigations into its Medicare billing practices.
