Humana (NYSE:HUM) Issues Quarterly Earnings Results, Beats Expectations By $0.34 EPS

Key Points

• Humana beat Q1 expectations, reporting EPS of $10.31 versus estimates of $9.97 and revenue of $39.65B (up ~23.5% year‑over‑year), though Q1 profit was below last year's $11.58 EPS.
• Management reiterated a plan to return to a sustainable margin of at least 3% in 2028 and said it may make benefit adjustments in 2027 to help achieve that target, while updating FY‑2026 guidance.
• Membership and strategic moves support growth—Medicaid rose by ~50,000 lives and Humana closed the MaxHealth deal to expand CenterWell in Florida—while balance‑sheet actions strengthened liquidity but leave a potential $1.0B–$1.5B cash obligation in 2027 if Welsh Carson exercises put options.

Humana (NYSE:HUM - Get Free Report) released its earnings results on Wednesday. The insurance provider reported $10.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $9.97 by $0.34, Zacks reports. The firm had revenue of $39.65 billion for the quarter, compared to analyst estimates of $39.08 billion. Humana had a return on equity of 11.43% and a net margin of 0.92%.The company's revenue was up 23.5% on a year-over-year basis. During the same quarter last year, the firm posted $11.58 EPS. Humana updated its FY 2026 guidance to 9.000- EPS.

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

• Humana says Q1 is "where we expect" and is approaching 2027 bids with the explicit goal of returning to a sustainable margin of at least 3% in 2028, including making necessary benefit adjustments in 2027 to stay on track.
• Membership growth is on track—Medicaid membership rose by ~50,000 lives and Humana completed the MaxHealth acquisition to expand CenterWell primary care in Florida, supporting both top‑line growth and care integration.
• Management remains confident about returning to top‑quartile Stars in PY2028 and reports early PY2029 engagement is translating to better activation, with Q1 about 5% ahead of last year's gap‑closure pace on key HEDIS metrics.
• The company has strengthened liquidity and reduced capital requirements (including a $1B junior subordinated note and >$3B of mitigated capital contributions) while preserving dividends, but notes a potential cash obligation of roughly $1.0B–$1.5B in 2027 if Welsh Carson exercises put options.

Humana Price Performance

Shares of NYSE:HUM opened at $243.97 on Thursday. The firm has a market capitalization of $29.29 billion, a PE ratio of 24.84, a PEG ratio of 2.40 and a beta of 0.44. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 0.70. Humana has a 1-year low of $163.11 and a 1-year high of $315.35. The business's 50 day moving average is $187.48 and its 200-day moving average is $227.45.

Humana Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, June 26th will be issued a dividend of $0.885 per share. This represents a $3.54 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, June 26th. Humana's dividend payout ratio (DPR) is presently 36.05%.

Insider Activity at Humana

In other news, insider Sanjay K. Shetty bought 810 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The stock was acquired at an average cost of $185.21 per share, for a total transaction of $150,020.10. Following the completion of the purchase, the insider owned 11,657 shares of the company's stock, valued at $2,158,992.97. This trade represents a 7.47% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.20% of the company's stock.

Institutional Investors Weigh In On Humana

Several institutional investors and hedge funds have recently bought and sold shares of HUM. Invesco Ltd. lifted its holdings in shares of Humana by 9.3% during the 4th quarter. Invesco Ltd. now owns 2,233,130 shares of the insurance provider's stock worth $571,972,000 after acquiring an additional 189,670 shares during the period. Corient Private Wealth LLC increased its stake in Humana by 329.3% in the fourth quarter. Corient Private Wealth LLC now owns 120,104 shares of the insurance provider's stock valued at $30,762,000 after acquiring an additional 92,125 shares during the period. Ameriflex Group Inc. acquired a new position in Humana in the fourth quarter worth about $128,000. Naya Capital Management UK Ltd. raised its position in Humana by 59.1% in the fourth quarter. Naya Capital Management UK Ltd. now owns 1,243,184 shares of the insurance provider's stock worth $318,417,000 after purchasing an additional 461,563 shares in the last quarter. Finally, State of Tennessee Department of Treasury lifted its stake in Humana by 221.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 74,853 shares of the insurance provider's stock worth $19,172,000 after purchasing an additional 51,602 shares during the period. Institutional investors own 92.38% of the company's stock.

Trending Headlines about Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Q1 beat on revenue and EPS — Humana reported stronger-than-expected Q1 results (EPS topped estimates; revenue rose ~23% YoY) and cited lower-than-feared medical costs in the quarter, which supports near-term earnings momentum. Humana Beats Q1 Earnings Estimates on Increasing Premiums
• Positive Sentiment: Membership and premium trends — Medicare Advantage membership surged and premiums increased, lifting revenue and giving the market confidence in growth drivers for Humana’s MA-focused business. Humana beats quarterly profit estimates on lower medical costs
• Positive Sentiment: CenterWell / Cost Plus Drugs partnership expands employer pharmacy reach — the Mark Cuban Cost Plus Drugs tie-up for employer pharmacy services could reduce drug costs for customers and strengthen Humana’s value proposition to employers. Mark Cuban’s Cost Plus Drugs, Humana In Deal To Take On Employer Drug Costs
• Neutral Sentiment: Company stance on CMS relief — Humana is public about hoping for CMS rate relief for Medicare Advantage (a tailwind longer term) but acknowledged ongoing cost pressures, so the outlook is mixed until policy and cost trends clarify. Humana Bets On CMS Rate Relief But Admits Cost Pressures Persist
• Neutral Sentiment: Swedish legal timeline set — a Stockholm court has scheduled a June verdict in a permit dispute involving Humana’s Swedish care unit; localized legal risk but limited near-term impact on the U.S. parent. Stockholm Court Sets June Verdict Date in Humana Permit Dispute
• Negative Sentiment: Margin pressure and lower Medicare Star Ratings — Q1 profit fell versus last year as benefit ratio and lower Medicare Star Ratings (which reduce bonus payments) weighed on profitability. Analysts flagged this as a recurring headwind. Humana Profit Falls as Lower Medicare Ratings Hurt Bonuses
• Negative Sentiment: Guidance and market reaction mixed — some outlets reported an unchanged or trimmed FY26 reported EPS view and investor disappointment with guidance/ratings, which prompted early selling in the session despite the beat. Watch management’s forward commentary for clarification. Humana Cuts FY26 EPS View, Backs Adj. Earnings Forecast After Weak Q1 Profit; Stock Drops

Analyst Upgrades and Downgrades

HUM has been the subject of a number of research analyst reports. Truist Financial upped their price target on Humana from $200.00 to $220.00 and gave the stock a "hold" rating in a report on Monday, April 13th. Zacks Research downgraded shares of Humana from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 14th. Evercore boosted their target price on shares of Humana from $180.00 to $195.00 in a research report on Wednesday, April 8th. Wells Fargo & Company upped their target price on shares of Humana from $206.00 to $227.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 7th. Finally, Cantor Fitzgerald reduced their price target on shares of Humana from $290.00 to $201.00 and set a "neutral" rating for the company in a report on Thursday, February 12th. Seven equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $222.09.

About Humana

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.