(Reuters) -UnitedHealth on Tuesday reinstated full-year profit forecast that it pulled over two months ago, but its guidance fell short of analysts’ already-lowered expectations, as the U.S. health insurer battles rising costs in its government-backed plans.
The company, which has seen a series of setbacks this year, also missed Wall Street expectations for second-quarter earnings.
The results show the scale of the challenges UnitedHealth’s new CEO Stephen Hemsley is facing after being restored to the role in May following the abrupt resignation of incumbent Andrew Witty.
Its shares fell 5% in premarket trading after the company said its new forecast reflects expectations for higher realized and anticipated care trends.
UnitedHealth suspended its 2025 forecast in May, a historic first for the insurer, citing higher-than-anticipated medical expenditures, which have also rattled its peers.
The company on Tuesday forecast annual profit of at least $16 per share, lower than its previous expectation of $26 to $26.50 per share.
Analysts on average were expecting a profit of $20.91 per share, per LSEG data.
The healthcare conglomerate reiterated that it expects to return to earnings growth in 2026.
The company’s adjusted second-quarter profit of $4.08 per share missed analysts’ average estimate of $4.48.
(Reporting by Sneha S K and Sriparna Roy in Bengaluru; Editing by Sriraj Kalluvila)
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