UnitedHealth missed second-quarter earnings expectations and adjusted its 2025 forecast, expecting lower earnings of at least $16 per share due to rising medical costs. Analysts forecast full-year earnings of $20.64 per share. CEO Andrew Witty departed in May, replaced by Chairman Stephen Hemsley, who promised a “prudent” outlook.

In the second quarter, UnitedHealth reported adjusted earnings of $4.08 per share on $111.6 billion in revenue, missing analyst expectations. Medical costs, the company’s biggest expense, jumped 20% to $78.6 billion. Competitors like Elevance Health Inc. and Centene Corp. have also lowered forecasts due to rising medical costs.

Insurers are facing higher-than-expected medical costs, including expensive emergency room visits, prescription drug costs, behavioral health care, and costly treatments like gene therapy. UnitedHealth’s stock slid over 3% to $272.51 before the opening bell, down 44% this year. The company’s stock reached an all-time high last November but has declined since the fatal shooting of CEO Brian Thompson in December.

Read more at Yahoo Finance: UnitedHealth falls short of second quarter expectations and offers weak outlook for 2025