This article first appeared on GuruFocus.
UnitedHealth Group (NYSE:UNH) reports third-quarter 2025 results before the market opens on October 28. Wall Street expects EPS of $2.79, down over 60% from last year on revenue of $113 billion, up approximately 12%. Shares have lost nearly 30% this year, despite a strong rally of nearly 30% after Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway revealed a new stake in UnitedHealth.
Last quarter, UnitedHealth posted revenue of $112 billion, a 13% increase from the prior year, though profits fell sharply as medical-care costs surged and the company continued to deal with the impacts from February’s 2024 Optum cyber-attack. This quarter will test whether management has begun to get those expenses under control. Investors will focus on the medical care ratio (MCR), which rose above 89% last quarter, reflecting higher medical utilization and cost pressures. At the same time, attention will turn to Optum, where management acknowledged that its performance has not met expectations.
Guidance will also be key. After a difficult stretch, the market wants clarity on the pace of margin recovery heading into 2026. Management’s commentary around MCR, pricing discipline, and Optum’s growth trajectory will likely determine whether the stock can extend its rebound or lose momentum again.
