UnitedHealthcare’s mother or father firm, UnitedHealth Group, is in want of some mattress relaxation this week. The corporate’s inventory value (NYSE: UNH) has been knocked off its toes once more after the American insurance coverage big reported disappointing quarterly outcomes and supplied 2025 earnings steerage that was considerably under investor expectations. Right here’s what you have to know.
UnitedHealth Group’s Q2 2025 earnings
Immediately, UnitedHealth Group reported its second-quarter 2025 outcomes—and so they didn’t reside as much as investor expectations.
For the quarter, the corporate reported an adjusted earnings per share (EPS) of $4.08. It reported income of $111.62 billion for the quarter.
As famous by CNBC, analysts surveyed by LSEG had anticipated UnitedHealth to report income of $111.52 billion for the quarter, that means the corporate barely outperformed expectations. Nonetheless, those self same analysts additionally anticipated UnitedHealth to report an adjusted EPS of $4.48. At an precise adjusted EPS of $4.08, UnitedHealth got here in considerably under expectations.
The corporate could have crushed on income, however it made much less revenue than anticipated due to rising healthcare prices. These rising healthcare prices are partly attributed to older prospects now having surgical procedure and different medical procedures that they postpone throughout the pandemic years, notes CNBC. These embrace non-emergency procedures equivalent to hip and different joint replacements.
But it wasn’t UnitedHealth Group’s Q2 outcomes that gave traders the shivers. The corporate additionally up to date its beforehand suspended 2025 full-year outlook. Traders weren’t pleased about that both. UnitedHealth Group says it expects income of between $445.5 billion and $448 billion for fiscal 2025 and adjusted earnings per share (EPS) of “not less than” $16.
As CNBC notes, traders had anticipated fiscal 2025 income of $449.16 billion and adjusted EPS of $20.91 per share.
Because of the lackluster quarter and poorer-than-expected 2025 forecast, UnitedHealth Group shares are dropping in premarket buying and selling this morning as of this writing.
Immediately’s outcomes have appeared to have rattled medical health insurance business traders, particularly contemplating that UnitedHealth Group, as CNBC notes, is usually seen because the “bellwether” for America’s non-public healthcare business.
In illness and in well being
It’s not simply UnitedHealth Group’s newest Q2 outcomes and underwhelming fiscal 2025 forecast which have rattled the corporate’s traders as of late. Because the starting of the summer season, the corporate has seen unhealthy information pile up.
In early Might, UnitedHealth Group’s then-CEO, Andrew Witty, introduced he was stepping down for private causes. Witty had been extremely criticized for his perceived tone-deaf response to the anger that People expressed towards the corporate after the killing of Brian Thompson, CEO of the corporate’s UnitedHealthcare unit, in December.
Together with saying Witty’s departure, UnitedHealth Group additionally introduced it was suspending its 2025 full-year fiscal outlook as a consequence of medical prices that have been more and more larger than anticipated. The corporate’s chairman, Stephen Hemsley, was introduced as the brand new CEO.
However just a few days after Hemsley grew to become UnitedHealth Group’s new CEO, the Wall Avenue Journal reported that UnitedHealth was below investigation by the Division of Justice (DOJ) over doable Medicare fraud. This information, which UnitedHealth Group referred to as “misinformation,” despatched UNH shares tumbling.
Then, simply final week, UnitedHealth Group confirmed on Thursday that it was certainly below federal legal and civil investigations involving its Medicare enterprise.
People angered by non-public insurance coverage
Whereas traders could also be fretting over UnitedHealth Group’s woes, few People are prone to really feel sympathy for the non-public insurance coverage big.
After the homicide of Thompson, social media customers in america exploded not with unhappiness or outrage, however with glee.
What the response to the killing revealed was that there’s a widespread, deeply rooted anger by People throughout the political spectrum towards the nation’s non-public healthcare system. As America’s largest non-public well being insurer, UnitedHealth Group is a focus for this anger—and People didn’t maintain again.
As Quick Firm reported on the time, social media was flooded with People venting their horror tales and frustrations in coping with UnitedHealthcare and the opposite for-profit medical health insurance firms which have a lot management over their well being and monetary lives.
“My copay for ideas and prayers is $100,000; I heard his situation was pre-existing; My means to care was denied; My sympathy requires a referral; Submitted declare for condolences was denied,” a consumer on Bluesky stated.
This pent-up anger towards UnitedHealth wasn’t helped by Witty’s response to the outcry, which some labeled “tone-deaf.”
UNH shares have had a foul 2025
As of the time of this writing, UNH shares are down about 1.11% to $279, pushed by the corporate’s poor Q2 2025 outcomes and disappointing fiscal 2025 steerage. However UNH shares despair is nothing new this 12 months.
Because the begin of 2025, UNH shares had already fallen greater than 44% as of yesterday’s shut of markets, primarily as a result of rising prices of healthcare. Over the previous 12 months, UNH shares have collapsed greater than 50% as of yesterday’s market shut.
