UNITEDHEALTH GROUP PROFIT REPORT (UNH) Q2 2025

Unitedhealth Cluster On Tuesday, he issued a 2025 perspective that did not reach the expectations of Wall Street, since the company's insurance unit continues to deal with higher medical costs.

The actions of UnitedHealth Group closed more than 7% under Tuesday.

The company anticipates that it will publish 2025 adjusted profits of at least $ 16 per share, with revenues of $ 445.5 billion to $ 448 billion. Wall Street analysts hoped that 2025 adjusted profits of $ 20.91 per share and income of the entire year of $ 449.16 billion, according to LSEG consensus estimates.

In addition to the highest medical costs, the updated perspective eliminates around $ 1 billion of “previously planned portfolio shares” that the company no longer pursues, said the CEO of Unitedhealthcare, Tim Noel, during a earning call on Tuesday. He did not provide details about these actions.

UnitedHealth Group said he hopes to return to the growth of profits in 2026.

The action fell in May after the company suspended the orientation of 2025 due to elevated medical costs and announced the abrupt departure of former CEO Andrew Witty. Tuesday's report adds to a growing series of setbacks for the company, owner of the country's largest and powerful insurer, Unitedhealthcare, is often considered the industry stimulus.

The company expects the medical care ratio of its insurance unit, a measure of the total medical expenses paid in relation to the premiums collected, between 89% and 89.5%. A lower relationship generally indicates that a company collected more on premiums than it paid for benefits, resulting in greater profitability.

For the second quarter, that relationship increased to 89.4% of 85.1% during the most annual period, mainly due to medical costs. The company said that health expenses during the quarter rose much faster than it charged on the premiums. In addition to that, Medicare's fund cuts also worsened things.

Analysts expected that relationship to reach 89.3% for the quarter, according to Streetacount estimates.

The Unitedhealth group report indicates that high medical costs in Medicare Advantage plans may not relieve in the short term for the general health insurance industry. UnitedHealthcare, the Insurance Arm of UnitedHealth Group, is the largest supplier in the country of those private Medicare plans.

The highest expenses in Medicare Advantage plans have persecuted insurers during the last year as more people return to hospitals to undergo procedures that had delayed during the Covid-19 pandemic, such as replacements in the joints and hips.

“When we prepare our offers of 2025 Medicare Advantage in the first half of 2024, we significantly underestimate the accelerating medical trend and do not modify the benefits or plan the offers enough to compensate for the pressures that we are now experiencing,” Noel said during the call.

Noel said the doctor and outpatient care represented 70% of the pressure on medical costs so far this year. But hospital attention also accelerated during the second quarter, and the company expects a “relatively large pressure of pressure” throughout the year, he added.

UnitedHealthcare continues to see that more patients use ER and observation stays, with more services offered and grouped as part of each visit, Noel said.

This is what United Group reported for the second quarter compared to what Wall Street expected, based on a LSEG analysts survey:

• Profit per action: $ 4.08 adjusted compared to $ 4.48 expected
• Revenue: $ 111.62 billion compared to $ 111.52 billion expected

The company registered net income of $ 3.41 billion, or $ 3.74 per share, for the quarter. That is compared to the net income of $ 4.22 billion, or $ 4.54 per share, during the period of year.

Excluding certain articles, the tight profits were $ 4.08 per share for the quarter.

UnitedHealth raised $ 111.62 billion in revenues for the second quarter, more than 12% since the same period a year ago due to the growth within Unitedhealthcare and the company's Optum unit. This segment includes Optum Health, which provides attention and recommends suppliers, and the benefits manager of Pharmacy Optum RX.

Despite the highest medical costs, Unitedhealthcare generated $ 86.1 billion in revenues for the second quarter, 17% more than the same period of the previous year. Analysts expected UnitedHealthcare to reserve $ 84.89 billion for the period, said Streetacount estimates.

While Optum RX revenues increased almost 19% to $ 38.46 billion, the revenues of the second quarter of Optum Health fell 7% year after year to $ 25.21 billion. The company's property of an insurer, a pharmacy benefits manager and care suppliers has allowed him to dominate the industry, but the decrease in Optum Health has caught the attention of Wall Street.

“We know that Optum's performance has not met expectations. We are re -enforced in the fundamental execution to ensure that we meet our potential to help the health system work better for all,” said Dr. Patrick Conway, CEO of Optum, in the statement.

The company expects the Optum General Unit to have the sales of 2025 from $ 266 billion to $ 265.7 billion.

In particular, the report arrives only a few days after Unitedhealth revealed that it is complying with the investigations of the Department of Justice on its Medicare billing practices.

Noel on Tuesday said the company is expanding its efforts to monitor its commercial practices and avoid additional costs for consumers.

“We have intensified our audit integrity tools, clinical policy and payment integrity to protect customers and patients from unnecessary costs,” he said, adding that the company is using AI tools to improve the experiences of patient and suppliers service and save costs.

During the gain call, the new CEO of United Group, Stephen Hemsley, acknowledged that the company and other insurers face “continuous public controversy over long -standing practices.”

He added that beyond the “environmental factors” that affect the entire sector, “we have committed operating prices and errors, and others too.”

“They are receiving the necessary attention. Our critical processes, including the state of risk, attention management, pharmaceutical services and others are being reviewed by independent experts and will be reviewed every year and are reported on,” he said. “And these processes can be reviewed at any time by external stakeholders.

Those experts include Analysis Group and FTI Consulting, said Hessley. He added that the company expects the review to be completed at the end of the third quarter of this year, with plans to publish a first report on the findings in the fourth quarter.

“While we believe in our supervision and integrity of these processes, wherever it is determined that they disagree with the prescribed practice, they will be immediately remedied and we will continue on this path,” he added.

It marks the first profit report by UnitedHealth with Hemsley, who has the task of restoring investors and changing a company with difficulties that has continued to attract a strong public scrutiny in recent months. The actions of UnitedHealth Group fell more than 44% during the year, promoted in part by the investigations of the Department of Justice and its suspended perspective.

The company's 2024 was not better. He arrived at the murder of the CEO of Unitedhealthcare, Brian Thompson, the torrent of the public setback that followed and a historical cyber attack that affected millions of Americans.