UnitedHealth Group shares fell 4.4% Tuesday after the insurer warned that rising medical costs will continue to erode profits and delay earnings growth until 2026, according to Axios. The company said its second-quarter medical care ratio jumped 4.3 points to 89.4% as patient service use exceeded expectations and Medicare funding dropped. UnitedHealth reinstated its earnings outlook after a leadership shakeup, projecting 2025 revenue of $445.5 billion to $448 billion and adjusted EPS of at least $16. Bloomberg noted that profit would fall short of Wall Street’s estimates due to fixed annual pricing. CEO Tim Noel said UnitedHealth is pursuing tighter cost controls, narrower networks, and AI-driven operational changes. Shares have dropped over 46% in 2025.
