.jpg)
13 hours ago
1
Article content
UnitedHealth missed Wall Street’s second-quarter earnings expectations and offered a new and conservative take on the rest of 2025.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The health care giant said Tuesday that it expects rising medical costs, which have hurt the company and several rivals this year, to continue to pressure its performance.
Article content
Article content
The insurer says it now expects adjusted earnings of at least $16 per share in2025 after withdrawing its previous forecast for the year in May.
Article content
Article content
For the full year, analysts forecast earnings of $20.64 per share, according to the data firm FactSet.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
UnitedHealth Group Inc. runs one of the nation’s largest health insurance and pharmacy benefits management businesses. The Eden Prairie, Minnesota, company also operates a growing Optum business that provides care and technology support.
Article content
In May, the company withdrew its 2025 forecast due to higher-than-expected medical costs and CEO Andrew Witty departed the company abruptly. He was replaced by Chairman Stephen Hemsley, who was the UnitedHealth CEO for more than a decade until 2017.
Article content
Hemsley promised had said in June that UnitedHealth would establish a “prudent” 2025 earnings outlook when it detailed second-quarter results.
Article content
Hemsley also said then that the company had underestimated care activity and cost trends, but improvements were being made.
Article content
In the second quarter, UnitedHealth reported adjusted earnings of $4.08 per share on $111.6 billion in revenue. Analysts expected earnings of$4.48 per share on $111.5 billion in revenue, according to FactSet.
Article content
Article content
UnitedHealth is normally the first health insurer to report earnings every quarter. But this summer, it followed competitors like Elevance Health Inc. and Centene Corp. that have lowered their annual forecasts and delivered disappointing results.
Article content
Several insurers say they have been hit by medical costs that are rising faster than expected. Companies have seen a rise in expensive emergency rooms visits and growing prescription drug costs, especially from expensive cancer treatments and gene therapy.
Article content
They’ve also seen a rise in behavioral health care, which includes the treatment of mental health conditions and substance use disorders.
Article content
Shares slid about 4% before the opening bell Tuesday.
Article content
English (US)