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

Humana (NYSE:HUM) posted its quarterly earnings results on Wednesday. The insurance provider reported ($3.96) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($4.01) by $0.05, FiscalAI reports. Humana had a return on equity of 12.86% and a net margin of 1.02%.The business had revenue of $32.64 billion during the quarter, compared to analyst estimates of $32.08 billion. During the same period in the prior year, the business earned ($2.16) earnings per share. The business’s revenue was up 11.3% compared to the same quarter last year. 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 Price Performance

Humana stock traded up $1.51 during trading hours on Thursday, hitting $176.91. The stock had a trading volume of 637,885 shares, compared to its average volume of 2,316,616. The company has a debt-to-equity ratio of 0.68, a current ratio of 2.02 and a quick ratio of 2.02. The stock’s fifty day moving average is $247.61 and its two-hundred day moving average is $261.75. The stock has a market capitalization of $21.28 billion, a price-to-earnings ratio of 16.54, a PEG ratio of 1.50 and a beta of 0.44. Humana has a 1-year low of $169.61 and a 1-year high of $315.35.

Analyst Upgrades and Downgrades

HUM has been the topic of several recent research reports. Zacks Research cut shares of Humana from a “hold” rating to a “strong sell” rating in a research report on Thursday, January 1st. Guggenheim set a $252.00 target price on shares of Humana in a research note on Thursday. Robert W. Baird dropped their price target on shares of Humana from $280.00 to $264.00 and set a “neutral” rating for the company in a research note on Thursday, December 11th. KeyCorp restated a “sector weight” rating on shares of Humana in a report on Friday, December 12th. Finally, Jefferies Financial Group reduced their price target on shares of Humana from $313.00 to $310.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Seven equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $260.19.

Trending Headlines about Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Management projects ~25% Medicare Advantage membership growth in 2026 — scale gains could boost revenue and long‑term franchise value if margins recover. Humana outlines 25% Medicare Advantage membership growth for 2026
• Positive Sentiment: Revenue beat: Q4 revenue rose ~11% y/y to ~$32.6B, helped by CenterWell performance — shows underlying top‑line momentum despite profitability headwinds. Humana Incurs Q4 Loss, Revenues Up Y/Y on CenterWell Unit Strength
• Neutral Sentiment: Q4 EPS (non‑GAAP/adjusted context) slightly beat consensus but the company still reported a substantial GAAP loss; investors need to parse adjusted metrics vs. GAAP. Humana Reports Fourth Quarter 2025 Financial Results
• Negative Sentiment: FY‑2026 EPS guidance set at $9.00 vs. consensus ~$12.03 — a material cut to near‑term profitability expectations and the main driver of the stock decline. Humana forecasts 2026 profit below estimates
• Negative Sentiment: Lower quality (Star) ratings and Medicare Advantage rate pressure are expected to reduce margins and government benchmarks for plan payments — a structural headwind for 2026 results. Humana forecasts 2026 profit pressure as lower quality ratings weigh
• Negative Sentiment: Rising medical costs drove a widened Q4 GAAP loss (reported as roughly $796M in some coverage), adding to near‑term margin pressure. Humana Stock Falls on Disappointing Earnings Forecast
• Negative Sentiment: Market reaction: shares hit a 52‑week low and analysts are cautious, reflecting concern that reimbursement/rating dynamics and cost trends will keep profitability muted. Humana Hits 52-Week Low After Weak Profit Outlook

Hedge Funds Weigh In On Humana

A number of institutional investors have recently added to or reduced their stakes in HUM. Larson Financial Group LLC grew its holdings in Humana by 114.1% in the 3rd quarter. Larson Financial Group LLC now owns 152 shares of the insurance provider’s stock worth $40,000 after buying an additional 81 shares in the last quarter. Fulcrum Asset Management LLP acquired a new stake in shares of Humana during the 3rd quarter valued at about $42,000. BOKF NA raised its position in Humana by 4,125.0% during the third quarter. BOKF NA now owns 169 shares of the insurance provider’s stock valued at $44,000 after acquiring an additional 165 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in Humana by 40.3% in the second quarter. Geneos Wealth Management Inc. now owns 571 shares of the insurance provider’s stock valued at $140,000 after acquiring an additional 164 shares during the last quarter. Finally, Sunbelt Securities Inc. increased its stake in shares of Humana by 18.1% during the 3rd quarter. Sunbelt Securities Inc. now owns 719 shares of the insurance provider’s stock worth $187,000 after purchasing an additional 110 shares during the last quarter. Institutional investors and hedge funds own 92.38% of the company’s stock.

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.