UnitedHealth Group’s Rising Costs Pressure Profits, 2026 Recovery in Focus
UnitedHealth Group reported mixed Q2 2025 results, with revenue climbing to $111.6 billion but earnings per share missing estimates at $4.08 versus $4.59 expected. Net income fell to $3.4 billion as elevated healthcare costs, particularly in Medicare Advantage and Medicaid plans, squeezed margins. The medical care ratio jumped 430 basis points year-over-year to 89.4%, reflecting pent-up demand for deferred care.
While maintaining 2025 guidance of at least $16 EPS and $448 billion revenue, management signaled earnings growth may not resume until 2026. Shares dropped 5.32% intraday to $267.11 as investors weighed near-term cost pressures against the long-term recovery narrative.