Humana (NYSE:HUM) Posts Earnings Results, Beats Expectations By $0.05 EPS

Humana (NYSE:HUM) issued its quarterly earnings results on Wednesday. The insurance provider reported ($3.96) earnings per share (EPS) for the quarter, beating the consensus estimate of ($4.01) by $0.05, FiscalAI reports. The company had revenue of $32.64 billion for the quarter, compared to analyst estimates of $32.08 billion. Humana had a return on equity of 12.86% and a net margin of 1.02%.The company’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter last year, the company posted ($2.16) EPS. Humana updated its FY 2026 guidance to 9.000-9.000 EPS.

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

• Humana reported substantial membership growth—about 1 million new members (20%) in AEP and expects ~25% individual MA growth in 2026 with improved retention (up ~500 bps) and a higher-quality sales mix that management says will be enterprise-accretive in 2026.
• Management expects a significant net stars headwind of ~$3.5 billion in 2026, which is a primary driver of the year-over-year earnings decline and leaves individual MA margins slightly below break-even after accounting for stars.
• Full-year guidance is conservative—Humana expects adjusted EPS of at least $9 for 2026 (down from 2025) as the company factors in the stars headwind and dynamic funding environment.
• The company is advancing operational and balance-sheet initiatives (outsourcing, supplier consolidation, entity/redomestication, reinsurance and asset sales) that management says will materially improve the operating cost ratio and statutory capital efficiency, enabling funding of member growth while protecting credit ratings.
• Strategic growth priorities include expanding Medicaid and CenterWell (now in 13 states with Georgia and Texas next year), expected CenterWell revenue tailwinds (pharmacy, clinics), and planned targeted M&A in primary care to support long-term lifetime value.

Humana Stock Down 1.8%

Humana stock traded down $3.28 during midday trading on Wednesday, hitting $178.02. 3,945,696 shares of the stock were exchanged, compared to its average volume of 2,264,578. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $21.41 billion, a price-to-earnings ratio of 16.71, a price-to-earnings-growth ratio of 1.57 and a beta of 0.44. Humana has a 52-week low of $169.61 and a 52-week high of $315.35. The business’s 50-day moving average price is $249.25 and its 200-day moving average price is $262.36.

Analyst Ratings Changes

A number of research firms recently issued reports on HUM. Truist Financial dropped their price objective on shares of Humana from $300.00 to $285.00 and set a “hold” rating for the company in a research note on Monday, November 10th. KeyCorp reaffirmed a “sector weight” rating on shares of Humana in a research report on Friday, December 12th. Wolfe Research upped their price target on Humana from $300.00 to $325.00 and gave the stock an “outperform” rating in a research note on Thursday, January 8th. Jefferies Financial Group lowered their target price on Humana from $313.00 to $310.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Humana in a report on Thursday, January 22nd. Eight analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $293.21.

More Humana News

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Q4 results slightly beat expectations: Humana reported adjusted EPS of ($3.96) vs. consensus ($4.01) and revenue of $32.64B (up ~11% YoY), which shows underlying top‑line growth and a small EPS upside. Humana (HUM) Reports Q4 Loss, Tops Revenue Estimates
• Neutral Sentiment: Company released the full earnings release and conference materials; the transcript and filings provide more detail on cost drivers and guidance assumptions for investors who want to dig into management commentary. Humana Reports Fourth Quarter 2025 Financial Results; Provides Full Year 2026 Financial Guidance
• Neutral Sentiment: Earnings call transcript is available for investors to review management’s commentary on medical cost trends and plan-quality actions. Humana (HUM) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Weak FY‑2026 guidance: Humana guided EPS to 9.00 for FY‑2026 versus Street estimates near ~12.03, a material shortfall that directly pressures valuation and near‑term upside. Humana forecasts 2026 profit below estimates
• Negative Sentiment: Medicare Advantage headwinds and rising medical costs: Management cited higher medical costs and lower plan quality ratings exposure; analysts and press highlight a wider GAAP loss and margin pressure in the core MA business. Humana Loss Widens Amid Surging Medical Costs
• Negative Sentiment: Policy risk: Shares have been sensitive to federal moves on Medicare Advantage rates (government plan to keep 2027 MA rates nearly flat has driven outsized selling pressure). Humana Earnings Reveal Narrower-Than-Expected Loss. Why the Stock Is Falling.
• Negative Sentiment: Analyst caution — coverage notes and consensus revisions have turned more conservative after the guidance and MA headwinds, which limits near‑term upside. Are Wall Street Analysts Predicting Humana Stock Will Climb or Sink?

Hedge Funds Weigh In On Humana

Institutional investors have recently modified their holdings of the business. Larson Financial Group LLC lifted its holdings in Humana by 114.1% during the third quarter. Larson Financial Group LLC now owns 152 shares of the insurance provider’s stock worth $40,000 after acquiring an additional 81 shares during the period. Fulcrum Asset Management LLP purchased a new stake in shares of Humana during the 3rd quarter valued at $42,000. BOKF NA raised its stake in shares of Humana by 4,125.0% during the 3rd quarter. BOKF NA now owns 169 shares of the insurance provider’s stock worth $44,000 after purchasing an additional 165 shares during the period. Geneos Wealth Management Inc. boosted its holdings in shares of Humana by 40.3% in the 2nd quarter. Geneos Wealth Management Inc. now owns 571 shares of the insurance provider’s stock worth $140,000 after buying an additional 164 shares during the last quarter. Finally, Sunbelt Securities Inc. grew its position in Humana by 18.1% during the third quarter. Sunbelt Securities Inc. now owns 719 shares of the insurance provider’s stock valued at $187,000 after buying an additional 110 shares during the period. 92.38% of the stock is owned by institutional investors.

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.