UnitedHealth disappoints with weak second-quarter earnings outlook

In the United States, UnitedHealth recently announced its second-quarter earnings results, revealing that the company significantly underperformed against Wall Street's expectations. On July 29, 2025, UnitedHealth revealed adjusted earnings of $4.08 per share, falling short of the anticipated $4.48 per share. The company's revenue was reported at $111.6 billion, slightly exceeding the forecast of $111.5 billion. The health care giant indicated ongoing concerns regarding rising medical costs, which have negatively impacted both its performance and that of its competitors throughout the year. In light of these challenges, the company adjusted its earnings forecast for 2025, projecting a minimum adjusted earnings of $16 per share, a notable reduction from the earlier estimate of up to $30 per share. This decision followed a previous withdrawal of its 2025 forecast made in May, due to unexpectedly high medical expenses. Chief Executive Officer Andrew Witty's abrupt departure earlier this year added to the uncertainty surrounding UnitedHealth's leadership. Stephen Hemsley, who served as CEO until 2017 and has resumed a key leadership role, is now tasked with restoring confidence and providing a stable outlook for the company's financial future. CEO Hemsley has mentioned that they underestimated care activity and cost trends, though he assures that improvements are underway to stabilize the company's performance and address the concerns raised. In addition, UnitedHealth has experienced a 20% increase in medical costs, raising its operational expenses significantly to $78.6 billion during the quarter. This increase in costs comes at a time when UnitedHealth is facing stiff competition in the health insurance sector, with competitors such as Elevance Health Inc. and Centene Corp. also reporting weakening financial projections. Market reactions have reflected this disappointment; following the earnings report, UnitedHealth's shares fell over 3%, continuing a downward trend that has seen stock prices drop by 44% overall this year.