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UnitedHealth Cuts 2025 Guidance After Q2 Earnings Miss and DOJ Billing Probes

UnitedHealth is winding down select Medicare Advantage plans, overhauling operations to rein in medical costs, positioning itself for profit growth in 2026.

FILE - The logo for UnitedHealth Group appears above a trading post on the floor of the New York Stock Exchange, April 17, 2025. (AP Photo/Richard Drew, file)
UnitedHealth Group has its headquarters at the Optum corporate campus, seen on Wednesday, Jan. 15, 2025, in Eden Prairie, Minnesota. (Carlos Gonzalez/The Minnesota Star Tribune/TNS)
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Overview

  • UnitedHealth reported second-quarter adjusted earnings per share of $4.08 on $111.6 billion in revenue, falling short of analysts’ forecasts.
  • Its consolidated medical care ratio jumped to a record 89.4 percent as higher utilization and unit cost trends outpaced pricing.
  • After suspending guidance in May, the insurer reinstated its 2025 outlook, cutting full-year adjusted EPS to at least $16 and revenue to $445.5 billion–$448 billion.
  • In a recent SEC filing, UnitedHealth confirmed it is subject to criminal and civil Department of Justice investigations into its Medicare billing practices.
  • Under CEO Stephen Hemsley, the company plans to exit select Medicare Advantage plans impacting over 600,000 members and intensify compliance reviews ahead of a targeted return to earnings growth in 2026.