UnitedHealth Maintains 2025 Revenue Forecast Amid Regulatory Pressures and Cyberattack
UnitedHealth Group, the US healthcare giant, has maintained its 2025 revenue forecast despite facing regulatory pressures and a significant cyberattack. The company has also made strategic changes and navigated mixed investor sentiment.
UnitedHealth has weathered recent storms by conducting $5.5 billion in share buybacks and increasing its dividend by 5 percent in the first half of 2025. However, the company has also withdrawn from hundreds of Medicare Advantage plans, affecting around 600,000 members, due to regulatory pressure and funding cuts from the Centers for Medicare and Medicaid Services (CMS).
The second quarter results showed a 12.9 percent revenue increase to $111.62 billion, but earnings per share fell short of expectations. Despite this, UnitedHealth has maintained its 2025 revenue forecast. The company's stock, however, has declined by over 37 percent since the start of the year.
UnitedHealth's strategic shift has been accompanied by calls for governance changes. A shareholder, The Accountability Board, demanded an independent board chairman in September 2025, citing concerns about the concentration of power in CEO Stephen Hemsley, who has held both roles since 2017. An activist investor group has also called for the separation of the CEO and chairman positions.
UnitedHealth's ability to maintain its revenue forecast amidst challenges is a testament to its resilience. However, the company faces ongoing regulatory pressures, including antitrust investigations, and must navigate mixed investor sentiment. Its strategic changes and governance structure will continue to be scrutinized as it works to break its long-term downward trend.
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