Humana (NYSE:HUM – Get Free Report) issued its quarterly earnings results on Friday. The insurance provider reported ($0.70) EPS for the quarter, beating analysts’ consensus estimates of ($1.00) by $0.30, FiscalAI reports. The firm had revenue of $41.16 billion for the quarter, compared to analysts’ expectations of $40.87 billion. Humana had a return on equity of 11.20% and a net margin of 0.88%. The business’s revenue for the quarter was up 26.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.24 EPS. Humana updated its FY 2026 guidance to 9.500- EPS.
Here are the key takeaways from Humana’s conference call:
- Humana raised its 2026 adjusted EPS outlook to at least $9.50, from at least $9, citing cost trends at the lower end of its expected range and better-than-expected performance. The company said it remains on track to double individual Medicare Advantage pre-tax margin this year, excluding the STARS headwind.
- Early 2027 enrollment results are ahead of Humana’s expectations, and the company now anticipates membership growth, though it said it is too early to estimate the amount. Management expects meaningful individual MA margin improvement next year, supported in part by product pricing and operating changes.
- Humana reported a 4.17 member-weighted STARS rating for bonus year 2028, exceeding its top-quartile goal. It expects a one-time 2028 earnings tailwind, with some directed to investments and some potentially passed through to shareholders; the amount has not yet been quantified.
- Management expects medical cost trend to rise to 8%–9% in 2027, from 7%–8% in 2026, including 14%–15% growth in Part D costs tied to the health-technology pipeline. Humana said it has priced for the expected costs, but the higher trend remains a cost pressure.
- The new BlackRock joint venture is expected to improve balance-sheet efficiency, reducing Humana’s GAAP debt-to-cap ratio by about 130 basis points in the fourth quarter and eliminating the need to fund a previously expected 2027 clinic put option. Humana also expects about $900 million in pre-tax proceeds from the Gentiva divestment.
Humana Price Performance
HUM stock traded up $20.90 during mid-day trading on Friday, reaching $432.69. 2,576,136 shares of the company traded hands, compared to its average volume of 1,620,345. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. The company has a market capitalization of $51.96 billion, a P/E ratio of 40.94, a P/E/G ratio of 2.53 and a beta of 0.65. Humana has a 52-week low of $163.11 and a 52-week high of $456.50. The company has a fifty day moving average price of $403.96 and a 200-day moving average price of $312.27.
Humana Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, January 29th. Shareholders of record on Thursday, December 24th will be paid a $0.8850 dividend. The ex-dividend date is Thursday, December 24th. This represents a $3.54 annualized dividend and a yield of 0.8%. Humana’s dividend payout ratio (DPR) is currently 33.49%.
Key Headlines Impacting Humana
Here are the key news stories impacting Humana this week:
- Positive Sentiment: Humana reported a third-quarter loss of $0.70 per share, narrower than analysts’ expected $1.00 loss. Revenue rose 26.1% year over year to $41.16 billion, topping estimates. Article: HUM Q3 Earnings Beat Estimates on Strong Insurance Performance
- Positive Sentiment: The company raised its full-year 2026 adjusted EPS forecast to at least $9.50, above the roughly $9.13 consensus estimate. Reports cited lower-than-expected medical costs as a factor supporting the improved outlook. Article: Humana Raises 2026 Earnings Outlook
- Positive Sentiment: Humana expects Medicare Advantage membership to grow again in 2027, signaling continued expansion in a key business. Its CenterWell unit also helped drive the quarterly performance. Article: Humana Expects Another Year of Medicare Advantage Membership Growth
- Neutral Sentiment: Humana’s 2026 revenue guidance of $160 billion was below analysts’ $162.5 billion estimate, tempering the otherwise favorable earnings and outlook news. Article: Humana Third-Quarter Earnings
- Negative Sentiment: Despite beating estimates, Humana posted a loss compared with earnings of $3.24 per share a year earlier. Reports also noted that costs associated with new Medicare enrollees remain a concern. Article: Humana Profits Dip as Costs Rise from New Medicare Enrollees
Analysts Set New Price Targets
A number of equities research analysts recently issued reports on HUM shares. Barclays boosted their price objective on Humana from $515.00 to $582.00 and gave the company an “overweight” rating in a research note on Friday, October 9th. Truist Financial increased their target price on shares of Humana from $415.00 to $475.00 and gave the stock a “hold” rating in a research report on Monday, October 12th. Deutsche Bank Aktiengesellschaft started coverage on shares of Humana in a research note on Thursday, July 30th. They issued a “hold” rating for the company. Lake Street Capital initiated coverage on shares of Humana in a research report on Thursday, July 30th. They issued a “buy” rating on the stock. Finally, HSBC lowered shares of Humana to a “hold” rating in a research report on Thursday, July 30th. Twenty-one equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $458.96.
Read Our Latest Stock Report on Humana
About Humana
Humana Inc is a U.S. health and wellness company that provides health insurance and healthcare services. Its insurance offerings include Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid and employer-sponsored plans.
The company also provides care through CenterWell, its healthcare services brand, which includes primary care, home health and pharmacy services. Its insurance and care offerings are available in markets across the United States, with availability varying by product and location.
Humana was founded in 1961 as a nursing home company and later expanded into health insurance.
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