UnitedHealth Group’s 2025 outlook fell short of Wall Street’s expectations, with adjusted earnings projected to be at least $16 per share and revenue between $445.5 billion to $448 billion. This caused the company’s shares to drop more than 3% in premarket trading. Analysts had anticipated adjusted profit of $20.91 per share and revenue of $449.16 billion.

The company’s insurance unit medical care ratio for 2025 is expected to range between 89% and 89.5%. The second quarter saw an increase in this ratio to 89.4% from 85.1% due to higher medical costs. This suggests that elevated medical costs in Medicare Advantage plans may persist for the health insurance industry.

UnitedHealth Group recently disclosed that it is cooperating with Department of Justice investigations into its Medicare billing practices. This announcement follows a challenging year for the company, marked by setbacks, leadership changes, and a significant drop in shares. The new CEO, Stephen Hemsley, aims to restore investor confidence and address the company’s struggles.

Read more at CNBC: UnitedHealth Group (UNH) earnings report Q2 2025