Core Insights - UnitedHealth reported adjusted earnings per share of $2.92 for the third quarter, a significant decrease from $7.15 in the same period last year [1] - The company's revenue increased to $113.2 billion, up from $100.8 billion year-over-year [1] Financial Performance - Adjusted earnings per share: $2.92 compared to $7.15 a year earlier [1] - Revenue: $113.2 billion, an increase from $100.8 billion [1]

UnitedHealth Group Reports Third Quarter 2025 Results and Raises Full Year 2025 Earnings Outlook (October 28, 2025) UnitedHealth Group (NYSE: UNH) reported third quarter 2025 results, reflecting the continued execution on its performance agenda, refocus on its mission and culture, and return to sustained growth. "We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond, and our results this quarter reflect solid execution toward that goal," said S ...

Core Viewpoint - UnitedHealth raised its annual profit forecast after reporting better-than-expected quarterly earnings, attributed to effective management of medical costs [1] Company Summary - UnitedHealth reported quarterly earnings that exceeded market expectations, indicating strong financial performance [1] - The company has successfully kept medical costs in check, contributing to its improved profit outlook [1] Industry Summary - The performance of UnitedHealth reflects broader trends in the U.S. health insurance industry, where cost management is becoming increasingly critical for profitability [1]

Core Insights - UnitedHealth Group reported third quarter 2025 results, demonstrating continued execution on its performance agenda and a focus on sustainable growth, raising its full-year earnings outlook to at least $14.90 per share and adjusted earnings to at least $16.25 per share [2][5][39] Financial Performance - Consolidated revenues for Q3 2025 reached $113.2 billion, a 12% increase year-over-year, with earnings from operations at $4.3 billion and a net margin of 2.1% [4][6][7] - Adjusted earnings per share (EPS) for Q3 2025 were $2.92, while GAAP EPS was $2.59 [5][6][35] - Cash flows from operations were reported at $5.9 billion, equating to 2.3 times net income [5][12] Segment Performance - UnitedHealthcare revenues grew 16% year-over-year to $87.1 billion, driven by Medicare & Retirement and Community & State segments, serving 50.1 million consumers domestically [6][13] - Optum revenues increased by 8% year-over-year to $69.2 billion, primarily due to growth in Optum Rx [6][20] - The medical care ratio (MCR) was reported at 89.9%, reflecting utilization in line with expectations, with a year-over-year increase of 470 basis points attributed to elevated cost trends and Medicare funding reductions [6][8] Operational Metrics - Operating cost ratio for Q3 2025 was 13.5%, reflecting investments to support future growth [6][12] - UnitedHealthcare's operating margin decreased to 2.1% from 5.6% year-over-year, primarily due to elevated medical cost trends [13][29] - Optum's operating margin for Q3 2025 was reported at 3.6%, down from 7.0% in the previous year [20][29] Future Outlook - The company remains focused on strengthening performance and positioning for durable growth in 2026 and beyond, as indicated by the raised earnings outlook [2][5][39]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term stronger price trend but weaker medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares dropped 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Cautious market sentiment persists, with positioning remaining hedged and skeptical, which Siegel views as a healthy sign for future growth [11]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term strong price trend but weak medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares fell 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Sentiment remains cautious, with positioning still hedged, which Siegel views as a healthy sign for the market's future [11]

Group 1: Apple Inc. - Warren Buffett's Berkshire Hathaway sold 20 million shares of Apple in the second quarter, reducing its position by approximately 70% since late 2023, while Apple remains the largest holding in the portfolio valued at $313 billion [1][2] - Apple accounted for 43% of smartphone sales in the second quarter, significantly outperforming its closest competitor Samsung, and has a strong presence in personal computers, smartwatches, and tablets, which enhances consumer loyalty and pricing power [5][6] - The company has faced challenges in innovation, particularly in artificial intelligence, with delays in the anticipated AI features and a lack of major new products since 2017, raising concerns about its high valuation at 40 times earnings [7][8] Group 2: UnitedHealth Group - Warren Buffett initiated a new position in UnitedHealth Group, a diversified healthcare company with a market cap of $331 billion, which operates through two segments: UnitedHealthcare and Optum [10][11] - UnitedHealth has faced significant challenges, including underestimating expenses by $6.5 billion in 2025, leading to an 18% decline in earnings in the first half of 2025 due to rising medical costs and utilization [12][13] - The company is under investigation by the Justice Department for potential antitrust violations and billing practices, contributing to its shares trading 42% below record highs, indicating caution for potential investors [13][14]

UnitedHealth Group Incorporated (NYSE:UNH) will release earnings results for the third quarter, before the opening bell on Tuesday.Analysts expect the company to report quarterly earnings at $2.81 per share, down from $7.15 per share in the year-ago period. The consensus estimate for UnitedHealth Group’s quarterly revenue is $113.06 billion, compared to $100.82 billion a year earlier, according to data from Benzinga Pro.The company has missed analyst estimates for revenue in five straight quarters. Prior to ...

Core Insights - UnitedHealth Group is set to release its third-quarter earnings results, with analysts expecting earnings of $2.81 per share, a significant decrease from $7.15 per share in the same quarter last year [1] - The consensus estimate for quarterly revenue is $113.06 billion, an increase from $100.82 billion a year earlier [1] Revenue Performance - The company has missed analyst revenue estimates for five consecutive quarters, following a streak of beating estimates for 15 straight quarters prior to this period [2] Stock Performance - UnitedHealth shares rose by 1% to close at $365.98 on Monday [2] Analyst Ratings - Jefferies analyst David Windley maintained a Buy rating and raised the price target from $317 to $409 [5] - Goldman Sachs analyst Scott Fidel initiated coverage with a Buy rating and a price target of $406 [5] - Mizuho analyst Ann Hynes maintained an Outperform rating and increased the price target from $300 to $430 [5] - Barclays analyst Andrew Mok maintained an Overweight rating and raised the price target from $352 to $386 [5] - B of A Securities analyst Kevin Fischbeck maintained a Neutral rating and increased the price target from $350 to $390 [5]

Performance Overview - Baron Health Care Fund increased 5.39% in Q3 2025, outperforming the Russell 3000 Health Care Index's 5.05% but underperforming the Russell 3000 Index's 8.18% [2][3] - Since inception on April 30, 2018, the Fund has achieved an annualized return of 9.30%, compared to 8.68% for the Benchmark and 14.48% for the Index [2][4] Key Contributors - Strong stock selection in biotechnology, particularly from argenx SE and Insmed Incorporated, contributed significantly to the Fund's performance [5] - Argenx's Vyvgart sales exceeded expectations, while Insmed's Brinsupri received U.S. approval, representing a $5 billion-plus opportunity [5][16] - Investments in health care services, particularly RadNet, Inc. and Heartflow, Inc., also added value, with RadNet's shares rising due to strong quarterly results and guidance [6][7][17] Key Detractors - Poor stock selection in health care equipment, particularly from Masimo Corporation and Boston Scientific Corporation, negatively impacted performance [8][9] - Eli Lilly's stock fell due to disappointing Phase 3 trial results for orforglipron, alongside broader regulatory uncertainties affecting the pharmaceutical sector [12][21] - The Fund's underweight position in Johnson & Johnson, which saw a 22.3% increase, also detracted from relative performance [12] Portfolio Structure - The Fund held 46 stocks, with a significant overweight in biotechnology (31.8%) and health care equipment (24.0%), while being underweight in pharmaceuticals (15.2%) [24][28] - The top 10 holdings represented 47.8% of net assets, with Eli Lilly and argenx being the largest positions [26] Recent Activity - The Fund added 16 new positions and exited five, maintaining a focus on attractive valuations in the health care sector [29] - Notable purchases included AbbVie Inc., UnitedHealth Group, and Roivant Sciences, while positions in argenx and Eli Lilly were reduced to manage risk [30][31][37] Market Outlook - The health care sector is expected to offer attractive investment opportunities driven by demographic trends, chronic disease prevalence, and technological advancements [14][40] - Recent agreements, such as Pfizer's MFN pricing deal, are seen as positive for the pharmaceutical sector, with limited financial impact anticipated [38]