Q2 2025 Earnings Summary: UnitedHealth, Cigna, and Aetna
- August 15, 2025
UnitedHealth Group
UnitedHealth reported strong revenue of $111.6 billion, reflecting a 13% increase compared to last year. This growth was driven by continued expansion across both UnitedHealthcare and Optum.
However, adjusted earnings per share came in at $4.08, falling short of analyst expectations. Net income dropped 19% to $3.41 billion, mostly due to a 20% spike in medical costs, especially within Medicare Advantage and emergency care services.
In response to rising cost pressures, UnitedHealth revised its full-year earnings forecast, lowering expected EPS to at least $16, which is significantly lower than its earlier projection of up to $30. These pressures have also led the company to exit certain Medicare Advantage markets and tighten its operations.
Cigna Group
Cigna posted $1.5 billion in net income for the quarter and saw strong performance in its healthcare segment, which generated $1.1 billion in adjusted operating income. The company’s commercial-heavy business mix and growth in Evernorth helped it stay resilient despite rising care costs.
Unlike other insurers that rely heavily on Medicare Advantage or ACA plans, Cigna has reduced its exposure to those markets. This strategic move helped limit the impact of inflation and high-cost care claims.
Aetna (CVS Health)
Aetna, which operates as CVS Health’s insurance division, contributed $1.3 billion in adjusted operating income for Q2. This helped boost CVS Health’s overall net income to $1
billion.
Executives attributed this improved performance to product simplification and a sharper focus on Medicare Advantage membership quality. These changes appear to be paying off, especially compared to peers that are struggling under rising costs.
|
Company |
Q2 2025 Revenue |
Net Income / Operating Income |
Key Highlights |
|
UnitedHealth Group |
$111.6 billion |
$3.41 billion net income (↓ 19% YoY) |
Revenue grew 13%, but profits dipped due to a 20% jump in medical costs. EPS at $4.08. |
|
The Cigna Group |
$67.2 billion |
$1.5 billion net income $1.9 billion operating income |
Performance supported by Evernorth growth and strong commercial insurance lines. |
|
Aetna (CVS Health) |
Part of CVS: $98.9 billion |
$1.3 billion operating income (Aetna segment) |
Contributed to CVS’s gains. Stable results tied to focused Medicare Advantage strategy. |
Conclusion
UnitedHealth continues to lead the market in revenue, but rising medical costs and a more conservative earnings outlook are putting pressure on its bottom line.
Cigna remains financially steady, benefiting from its limited exposure to Medicare Advantage and ACA-related risks.
Aetna, as part of CVS Health, is steadily rebounding and now plays a key role in boosting CVS’s overall performance.