UnitedHealth Group posted a net profit of $3.4 billion in the second quarter of 2025, down from $4.2 billion during the same period last year, according to the company’s July 29 earnings report.
The company also set a new 2025 earnings guidance after suspending its outlook on May 13.
In December, UnitedHealth projected net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30 per share. In April, the company revised its outlook to $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share.
UnitedHealth is now projecting net earnings of at least $14.65 per share and adjusted earnings of at least $16 per share. It is also projecting total revenues between $444.5 billion and $448 billion in 2025.
“The new outlook reflects first half 2025 performance and expectations for the remainder of the year, including higher realized and anticipated care trends,” the company said in the report.
UnitedHealth Group
- Total revenues were $111.6 billion for the three months ended June 30, up from $98.9 billion during the same period last year.
- Earnings from operations were $5.2 billion in the quarter, down from $7.9 billion.
- The company’s medical cost ratio was 89.4% in the quarter, compared to 85.1% during the same period last year. UnitedHealth attributed the increase to medical cost trends, which “significantly exceeded pricing trends, including both unit costs and the intensity of services delivered.” It also attributed the increase to the ongoing effects of Medicare funding reductions.
UnitedHealthcare
- Total revenues for the quarter were $86.1 billion, up from $73.9 billion.
- Earnings from operations were $2.1 billion in the quarter (2.4% operating margin), down from $4 billion (5.4% margin) during the same period last year. The company attributed the decrease to higher-than-expected medical cost trends across the UnitedHealthcare business and the effects of Medicare funding reductions.
- “The higher medical trends are being driven by both an increase in units consumed and rapidly rising costs per patient encounter, which includes both the unit cost and the number, type and intensity of services being delivered having increased well beyond the pricing and benefit design considerations established last year,” the company said in the report.
Optum
- Total revenues were $67.2 billion for the quarter, up from $62.9 billion.
- Earnings from operations were $3.1 billion (4.6% operating margin), down from $3.9 billion (6.2% margin) during the same period last year.
- Optum Health’s revenue was $25.2 billion, a 7% decrease year over year. Optum Insight’s revenue was $4.8 billion, a 6% increase year over year. Optum Rx’s revenue was $38.5 billion, a 19% increase year over year.
