(Reuters) -UnitedHealth ( UNH ) on Tuesday reinstated full-year profit forecast that it pulled over two months ago, but its guidance fell short of analysts' already-lowered expectations, as the U.S. health insurer battles rising costs in its government-backed plans.

The company, which has seen a series of setbacks this year, also missed Wall Street expectations for second-quarter earnings.

The results show the scale of the challenges UnitedHealth's ( UNH ) new CEO Stephen Hemsley is facing after being restored to the role in May following the abrupt resignation of incumbent Andrew Witty.

Its shares fell 5% in premarket trading after the company said its new forecast reflects expectations for higher realized and anticipated care trends.

UnitedHealth ( UNH ) suspended its 2025 forecast in May, a historic first for the insurer, citing higher-than-anticipated medical expenditures, which have also rattled its peers.

The company on Tuesday forecast annual profit of at least $16 per share, lower than its previous expectation of $26 to $26.50 per share.

Analysts on average were expecting a profit of $20.91 per share, per LSEG data.

The healthcare conglomerate reiterated that it expects to return to earnings growth in 2026.

The company's adjusted second-quarter profit of $4.08 per share missed analysts' average estimate of $4.48.

(Reporting by Sneha S K and Sriparna Roy in Bengaluru; Editing by Sriraj Kalluvila)