UnitedHealth Group reported disappointing second-quarter earnings in 2025, missing Wall Street’s expectations with adjusted earnings of $4.08 per share against the anticipated $4.48 per share, despite revenue of $111.6 billion slightly exceeding estimates of $111.5 billion. The company also issued a conservative outlook for 2025, projecting adjusted earnings of at least $16 per share, significantly lower than the initial forecast of up to $30 per share and below analysts’ expectations of $20.64 per share. This led to a 4% drop in shares before the market opened on July 29, 2025. Rising medical costs, which surged 20% to $78.6 billion, were cited as a major factor, driven by increased emergency room visits, costly cancer treatments, gene therapies, and behavioral health care. The company has faced challenges, including the abrupt departure of CEO Andrew Witty in May, with Stephen Hemsley taking over, and the tragic killing of UnitedHealthcare CEO Brian Thompson in December 2024. UnitedHealth also plans to drop some Medicare Advantage plans, affecting over 600,000 people, and may exit parts of the Affordable Care Act market to address financial pressures.