Humana (NYSE:HUM) Issues Earnings Results

Humana (NYSE:HUM) posted its quarterly earnings data on Wednesday. The insurance provider reported $7.61 EPS for the quarter, beating the consensus estimate of $7.27 by $0.34, FiscalAI reports. Humana had a net margin of 0.88% and a return on equity of 11.20%. The firm had revenue of $40.89 billion during the quarter, compared to analyst estimates of $40.58 billion. During the same quarter last year, the business posted $6.27 EPS. The company’s revenue for the quarter 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 Stock Performance

Shares of HUM stock traded up $0.71 during trading on Friday, reaching $367.38. 564,855 shares of the company’s stock traded hands, compared to its average volume of 1,810,863. The firm’s 50-day moving average is $369.66 and its 200 day moving average is $267.69. The company has a market capitalization of $44.11 billion, a P/E ratio of 34.72, a PEG ratio of 2.08 and a beta of 0.71. Humana has a 1 year low of $163.11 and a 1 year high of $428.88. The company has a current ratio of 1.74, a quick ratio of 1.77 and a debt-to-equity ratio of 0.62.

Institutional Investors Weigh In On Humana

Several institutional investors have recently made changes to their positions in HUM. Larson Financial Group LLC grew its stake in Humana by 114.1% during the 3rd quarter. Larson Financial Group LLC now owns 152 shares of the insurance provider’s stock valued at $40,000 after acquiring an additional 81 shares in the last quarter. Teza Capital Management LLC lifted its position in shares of Humana by 9.4% in the second quarter. Teza Capital Management LLC now owns 1,255 shares of the insurance provider’s stock worth $307,000 after purchasing an additional 108 shares in the last quarter. Sunbelt Securities Inc. lifted its position in shares of Humana by 18.1% in the third quarter. Sunbelt Securities Inc. now owns 719 shares of the insurance provider’s stock worth $187,000 after purchasing an additional 110 shares in the last quarter. Transamerica Financial Advisors LLC boosted its holdings in shares of Humana by 36.1% during the fourth quarter. Transamerica Financial Advisors LLC now owns 490 shares of the insurance provider’s stock worth $126,000 after purchasing an additional 130 shares during the period. Finally, Fulcrum Asset Management LLP acquired a new stake in shares of Humana during the third quarter worth approximately $42,000. Hedge funds and other institutional investors own 92.38% of the company’s stock.

Humana News Roundup

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Analyst upgrades provide a bullish catalyst. Leerink Partners raised Humana from “market perform” to “outperform” and assigned a $513 price target, implying substantial upside from recent levels. Bank of America also upgraded the stock to “Buy.” Leerink Partners upgrade Bank of America upgrade
• Positive Sentiment: Humana exceeded second-quarter expectations. The insurer reported adjusted EPS of $7.61, above the $7.27 consensus estimate, while revenue reached $40.89 billion versus expectations of $40.58 billion. Profit rose as Medicare-related costs came more in line, and management continues to target margin expansion. Humana second-quarter profits
• Neutral Sentiment: TD Cowen raised its price target but retained a cautious view. The firm increased its target from $350 to $370 while maintaining a “Hold” rating, suggesting limited near-term upside at recent prices. TD Cowen price target revision
• Neutral Sentiment: The broader managed-care recovery may offer sector support. UnitedHealth’s improved margins, lower medical-cost ratio and raised guidance could strengthen confidence in a recovery across health insurers, though the read-through to Humana is indirect. UnitedHealth turnaround signal
• Negative Sentiment: The earnings beat failed to impress investors because full-year adjusted guidance was unchanged. Investors appear to have expected a stronger outlook, particularly as some industry peers raised forecasts. Humana stock reaction to second-quarter results
• Negative Sentiment: Humana plans to exit additional Medicare Advantage plans in 2027. The portfolio reshaping is intended to achieve a 3% margin, but it may reduce enrollment growth and highlights pressure from lower Medicare Advantage star ratings and elevated costs. Humana Medicare Advantage plan exits

Analyst Ratings Changes

HUM has been the topic of a number of recent analyst reports. Bank of America upgraded Humana from a “neutral” rating to a “buy” rating and set a $500.00 price target on the stock in a report on Wednesday. Robert W. Baird set a $390.00 target price on Humana in a research report on Thursday. Mizuho lifted their target price on Humana from $335.00 to $390.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Jefferies Financial Group raised shares of Humana from a “buy” rating to a “buy” rating in a report on Wednesday, May 20th. Finally, JPMorgan Chase & Co. increased their price target on shares of Humana from $214.00 to $316.00 and gave the company a “neutral” rating in a research report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Humana has a consensus rating of “Hold” and an average target price of $386.61.

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.