Humana (NYSE:HUM) Issues Earnings Results

Humana (NYSE:HUM) announced its quarterly earnings data 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 during 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 company’s revenue for the quarter was up 26.1% compared to the same quarter last year. During the same quarter last year, the firm posted $3.24 earnings per share. 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 Stock Up 5.1%

HUM stock traded up $20.90 during trading on Friday, reaching $432.69. The stock had a trading volume of 2,576,136 shares, compared to its average volume of 1,620,345. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.62. The company has a market capitalization of $51.96 billion, a price-to-earnings ratio of 40.94, a P/E/G ratio of 2.53 and a beta of 0.65. Humana has a one year low of $163.11 and a one year high of $456.50. The company’s 50 day moving average is $403.96 and its two-hundred day moving average is $312.27.

Humana Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 29th. Shareholders of record on Thursday, December 24th will be given a $0.8850 dividend. This represents a $3.54 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, December 24th. Humana’s dividend payout ratio is presently 33.49%.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft started coverage on shares of Humana in a research report on Thursday, July 30th. They issued a “hold” rating for the company. Guggenheim upped their price objective on shares of Humana from $269.00 to $471.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $420.00 price objective on shares of Humana in a research note on Friday. Evercore upgraded shares of Humana from an “in-line” rating to an “outperform” rating and set a $480.00 price objective for the company in a report on Wednesday, July 29th. Finally, Bank of America raised shares of Humana from a “neutral” rating to a “buy” rating and set a $500.00 target price for the company in a research report on Wednesday, July 29th. Twenty-one research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $458.96.

Humana News Roundup

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

Humana Company Profile

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.