UnitedHealth Group, the largest private US insurer, is set to report its second-quarter earnings on Tuesday. The company’s shares have fallen nearly in half since mid-May due to a plunge in profits from its flagship Medicare program and Optum Health physician practices. Chairman and CEO Stephen Hemsley will face his first test as leader after the abrupt resignation of former CEO Andrew Witty.
The company is under investigation by the Department of Justice into its Medicare billing practices, which has raised concerns among investors. Analysts expect UnitedHealth to post adjusted full-year earnings of $21.26 per share, but some have expressed concern over continued margin compression in Optum Health and accelerating medical cost trends in core Medicare Advantage.
The company’s struggles are part of a “perfect storm” of challenges, said Mizuho Securities analyst Ann Hynes. Investors will be watching for how Hemsley plans to stabilize the company’s embattled Medicare Advantage program and Optum Health physician practices. The company has pledged to provide new guidance on 2025 earnings with the release of its quarterly report.
The DOJ investigation is just one of several challenges facing UnitedHealth, including regulatory scrutiny from Congress. Former whistleblower Wendell Potter warned that public criticism of health insurers’ practices will not cease, and regulatory scrutiny in Congress has increased on both sides of the aisle.
UnitedHealth has taken steps to address these concerns, including hiring third-party auditors to review its practices in health insurance and pharmacy benefits services. However, the company’s progress will be closely watched by investors, who are seeking assurance that Hemsley can steer the company out of the challenges it faces.
Source: https://www.cnbc.com/2025/07/28/unitedhealth-unh-q2-earnings-preview.html