Humana (NYSE:HUM) Issues Quarterly Earnings Results, Beats Expectations By $0.35 EPS

Key Points

• Humana exceeded quarterly expectations: Adjusted EPS was $7.61 versus the $7.26 consensus, while revenue rose 26.2% year over year to $40.89 billion. Management maintained its 2026 adjusted EPS forecast of at least $9.00.
• Operating trends were broadly favorable: Medical and pharmacy costs remained within the company’s 7%–8% forecast, operating costs declined year over year, and Stars performance showed improvement toward a potential return to top-quartile results.
• Medicare Advantage remains a key risk: Humana plans to exit 2027 plans affecting about 600,000 members and lowered its 2026 GAAP EPS outlook to at least $6.52 due to lower Stars Ratings, despite keeping adjusted guidance unchanged.

Humana (NYSE:HUM - Get Free Report) issued its quarterly earnings data on Wednesday. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $7.26 by $0.35, FiscalAI reports. The firm had revenue of $40.89 billion during the quarter, compared to the consensus estimate of $40.57 billion. Humana had a net margin of 0.82% and a return on equity of 10.45%. The company's revenue for the quarter was up 26.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $6.27 EPS.

Here are the key takeaways from Humana's conference call:

• 2026 performance remains on track: Management said medical and pharmacy cost trends are within its 7%–8% forecast, with some inpatient favorability. The consolidated operating cost ratio fell 120 basis points year over year in the second quarter, and Humana expects an approximately 150-basis-point reduction for the full year.
• Stars performance is improving: Humana reported that its rate of improvement exceeded historical trends on 11 of 12 selected HEDIS and patient-safety measures, supporting management’s confidence in returning to top-quartile Stars results for bonus year 2028. However, final outcomes remain uncertain until CMS releases thresholds and results.
• 2027 MA plan exits will affect approximately 600,000 members as Humana prioritizes higher-return plans and pursues meaningful margin expansion. Management expects to recapture a significant portion of those members, citing a recapture rate of just over 40% in 2025.
• Operating-model changes—including centralized utilization management, increased outsourcing, vendor consolidation, and CarePlus platform integration—have generated what management described as hundreds of millions of dollars in value during the first half of 2026.
• Humana agreed to sell its minority stake in Gentiva for approximately $900 million, largely funding its MaxHealth acquisition, and won a new statewide Illinois Medicaid contract scheduled to begin in January 2027.

Humana Price Performance

Humana stock traded down $29.75 during mid-day trading on Wednesday, hitting $358.95. 2,102,698 shares of the company were exchanged, compared to its average volume of 1,801,411. The company has a market capitalization of $43.10 billion, a P/E ratio of 38.58, a PEG ratio of 2.07 and a beta of 0.71. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.77 and a quick ratio of 1.77. Humana has a 12-month low of $163.11 and a 12-month high of $428.88. The business's 50 day simple moving average is $367.16 and its two-hundred day simple moving average is $266.44.

Institutional Trading of Humana

A number of institutional investors have recently added to or reduced their stakes in the business. Larson Financial Group LLC increased its holdings in Humana by 114.1% in the third quarter. Larson Financial Group LLC now owns 152 shares of the insurance provider's stock valued at $40,000 after buying an additional 81 shares during the last quarter. Fulcrum Asset Management LLP purchased a new stake in Humana in the 3rd quarter worth approximately $42,000. DV Equities LLC acquired a new position in Humana in the fourth quarter worth approximately $43,000. BOKF NA raised its position in shares of Humana by 4,125.0% in the third quarter. BOKF NA now owns 169 shares of the insurance provider's stock valued at $44,000 after purchasing an additional 165 shares during the period. Finally, Caden Capital Partners LP bought a new stake in Humana in the 4th quarter valued at $112,000. 92.38% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Weiss Ratings upgraded Humana from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, June 29th. Needham & Company LLC assumed coverage on Humana in a research note on Wednesday, May 20th. They issued a "buy" rating for the company. Oppenheimer raised shares of Humana from an "outperform" rating to an "outperform" rating in a report on Wednesday, May 20th. Leerink Partners upped their target price on shares of Humana from $185.00 to $255.00 and gave the company a "market perform" rating in a research report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft cut Humana from a "buy" rating to a "hold" rating in a research note on Wednesday, May 20th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $331.09.

Humana News Summary

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Humana reported second-quarter adjusted EPS of $7.61, above the $7.26 consensus estimate, while revenue reached approximately $40.9 billion, also topping expectations. Results benefited from premium growth, medical membership gains and strength at CenterWell. Humana Q2 Earnings Beat Estimates on Medical Membership Growth
• Positive Sentiment: Insurance medical costs were broadly in line with management’s expectations, with a second-quarter benefit ratio of 91.2%. Humana maintained its 2026 adjusted EPS forecast of at least $9.00 and reaffirmed its Medicare Advantage membership growth outlook. Humana tops quarterly estimates, maintains profit outlook as medical costs stay in line
• Positive Sentiment: Bank of America upgraded Humana from “neutral” to “buy” and assigned a $500 price target, signaling potential upside based on improving expectations for the Medicare Advantage business. Bank of America upgrades Humana
• Neutral Sentiment: Humana expanded its board from 11 to 13 members by adding leaders with technology and finance experience; the move is unlikely to materially affect near-term earnings. Humana Expands Board
• Neutral Sentiment: Broader market caution ahead of the Federal Reserve’s interest-rate decision, including speculation about a possible quarter-point hike, may be adding volatility to trading. Investors Await Fed Decision
• Negative Sentiment: Humana lowered its 2026 GAAP EPS outlook to at least $6.52 from at least $8.36, citing continued pressure from lower Medicare Advantage Star Ratings. Although adjusted guidance was unchanged, investors appeared disappointed that management did not raise the forecast after the quarterly beat. Humana Cuts Outlook Again on Lower Medicare Ratings
• Negative Sentiment: A shareholder-lawyer solicitation related to alleged fiduciary-duty violations may create an additional headline risk, though no specific finding of wrongdoing was reported. Shareholder Fiduciary-Duty Solicitation

Humana Company Profile

Humana Inc NYSE: HUM is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana's products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.