Humana (NYSE:HUM) Posts Quarterly Earnings Results, Beats Expectations By $0.35 EPS

Humana (NYSE:HUM) announced its quarterly earnings data on Wednesday. The insurance provider reported $7.61 EPS for the quarter, beating analysts’ consensus estimates of $7.26 by $0.35, FiscalAI reports. Humana had a net margin of 0.82% and a return on equity of 10.45%. The firm had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.57 billion. During the same period in the previous year, the firm posted $6.27 earnings per share. The firm’s revenue was up 26.2% on a year-over-year basis.

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

• 2026 performance remains on track: Management said medical and pharmacy cost trends are within its 7%–8% forecast, with some inpatient favorability. The consolidated operating cost ratio fell 120 basis points year over year in the second quarter, and Humana expects an approximately 150-basis-point reduction for the full year.
• Stars performance is improving: Humana reported that its rate of improvement exceeded historical trends on 11 of 12 selected HEDIS and patient-safety measures, supporting management’s confidence in returning to top-quartile Stars results for bonus year 2028. However, final outcomes remain uncertain until CMS releases thresholds and results.
• 2027 MA plan exits will affect approximately 600,000 members as Humana prioritizes higher-return plans and pursues meaningful margin expansion. Management expects to recapture a significant portion of those members, citing a recapture rate of just over 40% in 2025.
• Operating-model changes—including centralized utilization management, increased outsourcing, vendor consolidation, and CarePlus platform integration—have generated what management described as hundreds of millions of dollars in value during the first half of 2026.
• Humana agreed to sell its minority stake in Gentiva for approximately $900 million, largely funding its MaxHealth acquisition, and won a new statewide Illinois Medicaid contract scheduled to begin in January 2027.

Humana Trading Down 8.3%

NYSE HUM traded down $32.08 on Wednesday, reaching $356.63. The company had a trading volume of 2,207,303 shares, compared to its average volume of 1,802,061. The stock has a market cap of $42.82 billion, a price-to-earnings ratio of 38.49, a PEG ratio of 2.07 and a beta of 0.71. The stock’s 50 day moving average is $367.16 and its 200-day moving average is $266.44. The company has a quick ratio of 1.77, a current ratio of 1.77 and a debt-to-equity ratio of 0.66. Humana has a 52 week low of $163.11 and a 52 week high of $428.88.

Humana News Roundup

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Humana reported second-quarter adjusted EPS of $7.61, above the $7.26 consensus estimate, while revenue reached approximately $40.9 billion, also topping expectations. Results benefited from premium growth, medical membership gains and strength at CenterWell. Humana Q2 Earnings Beat Estimates on Medical Membership Growth
• Positive Sentiment: Insurance medical costs were broadly in line with management’s expectations, with a second-quarter benefit ratio of 91.2%. Humana maintained its 2026 adjusted EPS forecast of at least $9.00 and reaffirmed its Medicare Advantage membership growth outlook. Humana tops quarterly estimates, maintains profit outlook as medical costs stay in line
• Positive Sentiment: Bank of America upgraded Humana from “neutral” to “buy” and assigned a $500 price target, signaling potential upside based on improving expectations for the Medicare Advantage business. Bank of America upgrades Humana
• Neutral Sentiment: Humana expanded its board from 11 to 13 members by adding leaders with technology and finance experience; the move is unlikely to materially affect near-term earnings. Humana Expands Board
• Neutral Sentiment: Broader market caution ahead of the Federal Reserve’s interest-rate decision, including speculation about a possible quarter-point hike, may be adding volatility to trading. Investors Await Fed Decision
• Negative Sentiment: Humana lowered its 2026 GAAP EPS outlook to at least $6.52 from at least $8.36, citing continued pressure from lower Medicare Advantage Star Ratings. Although adjusted guidance was unchanged, investors appeared disappointed that management did not raise the forecast after the quarterly beat. Humana Cuts Outlook Again on Lower Medicare Ratings
• Negative Sentiment: A shareholder-lawyer solicitation related to alleged fiduciary-duty violations may create an additional headline risk, though no specific finding of wrongdoing was reported. Shareholder Fiduciary-Duty Solicitation

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Larson Financial Group LLC increased its position in shares of Humana by 114.1% during the 3rd quarter. Larson Financial Group LLC now owns 152 shares of the insurance provider’s stock worth $40,000 after purchasing an additional 81 shares during the last quarter. Fulcrum Asset Management LLP bought a new position in shares of Humana during the 3rd quarter worth approximately $42,000. DV Equities LLC bought a new stake in Humana in the 4th quarter valued at $43,000. BOKF NA boosted its position in Humana by 4,125.0% during the third 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. Finally, Caden Capital Partners LP bought a new position in shares of Humana in the fourth quarter valued at about $112,000. Institutional investors own 92.38% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Barclays increased their price objective on Humana from $180.00 to $344.00 and gave the stock an “equal weight” rating in a report on Tuesday, May 26th. Cantor Fitzgerald boosted their price objective on Humana from $264.00 to $300.00 and gave the company a “neutral” rating in a research report on Tuesday, July 7th. Guggenheim boosted their target price on Humana from $252.00 to $269.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Weiss Ratings raised Humana from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, June 29th. Finally, Truist Financial upped their price target on shares of Humana from $320.00 to $415.00 and gave the stock a “hold” rating in a research report on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $331.09.

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.