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

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

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 Stock Performance

Shares of NYSE HUM traded up $8.20 during midday trading on Thursday, hitting $373.61. The company’s stock had a trading volume of 600,535 shares, compared to its average volume of 1,807,155. The stock has a fifty day moving average price of $368.38 and a 200 day moving average price of $267.06. Humana has a one year low of $163.11 and a one year high of $428.88. The company has a current ratio of 1.77, a quick ratio of 1.77 and a debt-to-equity ratio of 0.66. The firm has a market capitalization of $44.86 billion, a price-to-earnings ratio of 39.86, a P/E/G ratio of 2.12 and a beta of 0.71.

Trending Headlines about Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Leerink Partners upgraded Humana from “Market Perform” to “Outperform” and set a $513 price target, implying substantial upside from recent levels. The Fly analyst upgrade
• Positive Sentiment: Humana’s second-quarter adjusted earnings of $7.61 per share exceeded the $7.26 consensus estimate, while revenue rose 26.2% year over year to approximately $40.9 billion, helped by premium growth, membership gains and CenterWell expansion. CNBC earnings report
• Positive Sentiment: Bank of America upgraded Humana from “Neutral” to “Buy” with a $500 price target, adding to the improving analyst sentiment around a potential Medicare Advantage recovery.
• Neutral Sentiment: The company affirmed its 2026 adjusted earnings guidance of at least $9 per share and said its 91.2% insurance benefit ratio was in line with expectations, suggesting medical-cost trends are currently controlled.
• Negative Sentiment: Humana plans to exit additional Medicare Advantage plans in 2027 as it focuses on achieving a 3% margin. The portfolio reductions may improve profitability but could constrain membership and revenue growth. Benzinga Medicare Advantage plan exits report
• Negative Sentiment: Despite the quarterly beat, management did not raise adjusted guidance and lowered its 2026 GAAP EPS outlook to at least $6.52 from at least $8.36. Lower Medicare Advantage Star Ratings remain an earnings headwind, disappointing investors who were expecting a stronger forecast. Seeking Alpha earnings reaction

Institutional Investors Weigh In On Humana

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Larson Financial Group LLC boosted its holdings in shares of Humana by 114.1% in 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 bought a new position in Humana in the 3rd quarter worth about $42,000. DV Equities LLC purchased a new position in Humana during the 4th quarter valued at about $43,000. BOKF NA grew its holdings in Humana by 4,125.0% during the 3rd quarter. BOKF NA now owns 169 shares of the insurance provider’s stock valued at $44,000 after buying an additional 165 shares in the last quarter. Finally, Caden Capital Partners LP bought a new stake in shares of Humana during the fourth quarter valued at about $112,000. Institutional investors own 92.38% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on HUM. Barclays boosted their price objective on Humana from $180.00 to $344.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 26th. Weiss Ratings raised shares of Humana from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, June 29th. The Goldman Sachs Group increased their price target on shares of Humana from $158.00 to $195.00 and gave the company a “sell” rating in a research report on Thursday, April 30th. HSBC downgraded shares of Humana to a “hold” rating in a report on Thursday. Finally, Mizuho boosted their target price on shares of Humana from $335.00 to $390.00 and gave the company an “outperform” rating in a research note on Monday, June 8th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $383.00.

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.