Humana (NYSE:HUM) Posts Earnings Results

Humana (NYSE:HUM) released its quarterly earnings results on Wednesday. The insurance provider reported ($3.96) earnings per share (EPS) for the quarter, topping the consensus estimate of ($4.01) by $0.05, FiscalAI reports. The company had revenue of $32.64 billion during the quarter, compared to the consensus estimate of $32.08 billion. Humana had a return on equity of 12.86% and a net margin of 1.02%.The firm’s revenue was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the company posted ($2.16) EPS. 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

Shares of HUM stock traded down $3.53 during mid-day trading on Wednesday, reaching $177.77. The company’s stock had a trading volume of 3,625,568 shares, compared to its average volume of 2,244,725. The firm’s 50-day moving average is $249.25 and its two-hundred day moving average is $262.36. The company has a market cap of $21.38 billion, a P/E ratio of 16.34, a PEG ratio of 1.57 and a beta of 0.44. Humana has a 1-year low of $169.61 and a 1-year high of $315.35. The company has a debt-to-equity ratio of 0.68, a quick ratio of 2.02 and a current ratio of 2.02.

Humana News Roundup

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Q4 operating results: Humana reported adjusted EPS of ($3.96), narrowly beating the consensus loss of ($4.01), and revenue of $32.64B topped estimates, with revenue up ~11% year‑over‑year — evidence of top‑line strength. Humana (HUM) Reports Q4 Loss, Tops Revenue Estimates
• Neutral Sentiment: Company release / filings: Humana filed its Q4/FY press release and financial tables; the filings confirm the results and the guidance revision. View Press Release
• Neutral Sentiment: Corporate real estate item: Humana’s downtown Louisville building is slated to become a large hotel — a non‑operational asset note that is unlikely to affect near‑term operating results. Downtown Louisville’s Humana building to become dual-tower 1,000-room hotel
• Negative Sentiment: Guidance miss: Humana set FY‑2026 EPS guidance at 9.00, well below the ~12.03 analyst consensus — the guidance gap is the primary driver of the stock decline. Humana Issues 2026 Guidance Amid Medicare Advantage Headwinds
• Negative Sentiment: Medicare Advantage pressure and rising medical costs: Management cited lower quality ratings for MA plans and surging medical costs that widened GAAP losses and will weigh on margins going forward. Humana forecasts 2026 profit below estimates Humana Loss Widens Amid Surging Medical Costs
• Negative Sentiment: Analyst tone: Several analyst notes describe caution after the guidance and cost trends; consensus estimates may be revised down, increasing short‑term downside risk. Are Wall Street Analysts Predicting Humana Stock Will Climb or Sink?

Analysts Set New Price Targets

HUM has been the topic of a number of recent analyst reports. Sanford C. Bernstein reissued an “outperform” rating and issued a $344.00 price target on shares of Humana in a research report on Tuesday, January 6th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Humana in a research note on Thursday, January 22nd. Barclays reiterated an “underperformer” rating on shares of Humana in a report on Monday, January 5th. Zacks Research downgraded Humana from a “hold” rating to a “strong sell” rating in a research report on Thursday, January 1st. Finally, Robert W. Baird dropped their price objective on Humana from $280.00 to $264.00 and set a “neutral” rating on the stock in a research note on Thursday, December 11th. Eight research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $293.21.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Larson Financial Group LLC boosted its holdings in Humana by 114.1% during the third quarter. Larson Financial Group LLC now owns 152 shares of the insurance provider’s stock valued at $40,000 after purchasing an additional 81 shares in the last quarter. Fulcrum Asset Management LLP bought a new position in shares of Humana during the 3rd quarter worth approximately $42,000. BOKF NA lifted its position in shares of Humana by 4,125.0% during the 3rd quarter. BOKF NA now owns 169 shares of the insurance provider’s stock worth $44,000 after buying an additional 165 shares during the period. Geneos Wealth Management Inc. boosted its stake in Humana by 40.3% in the 2nd quarter. Geneos Wealth Management Inc. now owns 571 shares of the insurance provider’s stock valued at $140,000 after buying an additional 164 shares in the last quarter. Finally, Sunbelt Securities Inc. boosted its stake in Humana by 18.1% in the 3rd quarter. Sunbelt Securities Inc. now owns 719 shares of the insurance provider’s stock valued at $187,000 after buying an additional 110 shares in the last quarter. Institutional investors 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.