UnitedHealth Group (NYSE: UNH) reported stronger-than-expected earnings for the second quarter of 2025, with adjusted earnings per share (EPS) of $4.08 and net income of $3.41 billion. The health care giant also reinstated and raised its full-year 2025 outlook, projecting up to $448 billion in revenue and at least $16.00 in adjusted EPS.
Q2 2025 performance highlights
- Total revenue: $111.6 billion (up from $98.9 billion in Q2 2024)
- GAAP earnings per share: $3.74
- Adjusted EPS: $4.08
- Net income: $3.41 billion
- Cash from operations: $7.2 billion
- Return on equity (YTD): 20.6%
- Dividend raised 5% to $2.21 per share
Q2 earnings were impacted by $1.2 billion in discrete charges, including $620 million related to the individual exchange business and several legal provisions. Despite this, UnitedHealth saw solid top-line growth across both its UnitedHealthcare and Optum divisions.
2025 outlook raised
UnitedHealth had previously suspended its 2025 guidance in May. On July 29, the company reinstated that guidance with more clarity following two quarters of data. New projections include:
- Revenue: $445.5 billion to $448.0 billion
- Net EPS: At least $14.65
- Adjusted EPS: At least $16.00
- Medical cost ratio: 89.25% ± 25 bps
- Operating margin: 4.8%–5.0%
- Tax rate: ~18.5%
CEO Stephen Hemsley said the results reflect “a rigorous path back to high performance,” positioning the company for renewed growth in 2026.
Segment performance
UnitedHealthcare
- Q2 revenue: $86.1 billion (up 17%)
- Operating earnings: $2.1 billion
- Operating margin: 2.4% (down from 5.4%)
- People served: 50.1 million (+770,000 YTD)
Growth was driven by Medicaid and Medicare Advantage plans, although margins were compressed by higher-than-expected medical costs and Medicare funding reductions. UnitedHealthcare expects to serve 1.1 million more people in 2025, mostly seniors and those with complex care needs.
Optum
- Q2 revenue: $67.2 billion
- Operating earnings: $3.1 billion
- Operating margin: 4.6%
- Optum Rx scripts filled: 414 million
Optum Health faced pressure from pricing mismatches and Medicare rate impacts, but Optum Insight saw strong gains from tech-driven services and backlog growth. CEO Dr. Patrick Conway admitted performance fell short of expectations but said the company is “refocused on fundamental execution.”
Why it matters
UnitedHealth’s revised forecast signals a return to stability after prior uncertainty linked to rising medical costs and macroeconomic pressure. Analysts will be watching how the company manages costs through the rest of 2025 as it aims to hit ambitious financial targets.
The company will host a webcast for investors today at 8:00 a.m. ET. A replay will be available on its investor relations website through August 12.
Key takeaways
- UnitedHealth posted $4.08 in adjusted EPS for Q2.
- It reinstated and raised its full-year 2025 outlook.
- Medical cost pressures remain a concern, especially in Medicare Advantage.
- Growth is expected to resume in 2026, according to management.
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