UnitedHealth Group Stock Slips as Profit Disappoints, Outlook Cut Again

UnitedHealth Group shares tumbled in premarket trading after posting weaker-than-expected Q2 earnings. The health insurer reported adjusted EPS of $4.06 on $111.6 billion revenue, missing Visible Alpha's $4.64 EPS and $111.88 billion revenue consensus estimates.

The company reinstated guidance after a May suspension, slashing full-year EPS projections by approximately $10. UnitedHealth now forecasts at least $14.65 EPS and $445.5-$448.0 billion revenue, citing elevated care costs. Management expects earnings growth to resume in 2026.

This marks the second consecutive quarter of disappointing results and guidance reductions. Shares fell 3% post-announcement, extending a 40% year-to-date decline. The stock had plunged 22% last quarter - its worst daily performance since 1998 - following similar earnings shortfalls.

Analysts maintain bullish ratings despite operational challenges, including a CEO transition and ongoing DOJ investigation into billing practices. The consistent guidance reductions suggest persistent margin pressures in the healthcare sector.