UnitedHealth Group plunges over 7% due to lower-than-expected profits and reduced performance guidance.

On Tuesday morning in the eastern time zone, the stock price of UnitedHealth Group plummeted more than 7% after the company reported second-quarter non-GAAP earnings per share of $4.08, which was $0.37 lower than market expectations. Despite a 12.9% year-on-year increase in revenue to $111.62 billion in the second quarter, the company significantly lowered its full-year EPS guidance to a level significantly below market consensus. Rising medical costs have led to an increase in the medical loss ratio, putting pressure on the profitability of UnitedHealth Group.