Humana (NYSE:HUM) Announces Quarterly Earnings Results, Beats Expectations By $0.30 EPS

Humana (NYSE:HUM) posted its quarterly earnings data on Friday. The insurance provider reported ($0.70) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.00) by $0.30, FiscalAI reports. Humana had a return on equity of 11.20% and a net margin of 0.88%. The company had revenue of $41.16 billion for the quarter, compared to analysts’ expectations of $40.87 billion. During the same period in the previous year, the firm posted $3.24 EPS. Humana’s revenue was up 26.1% compared to the same quarter last year. 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 Trading Up 5.1%

Shares of HUM stock traded up $20.90 on Friday, hitting $432.69. 2,576,136 shares of the stock traded hands, compared to its average volume of 1,525,266. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.74 and a current ratio of 1.74. The firm’s 50-day moving average price is $403.96 and its two-hundred day moving average price is $312.27. Humana has a twelve month low of $163.11 and a twelve month high of $456.50. The stock has a market capitalization of $51.96 billion, a PE ratio of 32.71, a PEG ratio of 2.67 and a beta of 0.65.

Humana Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on HUM shares. Piper Sandler upgraded Humana from a “hold” rating to an “overweight” rating and set a $463.00 target price on the stock in a research report on Thursday, July 30th. Weiss Ratings raised Humana from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, August 14th. Cantor Fitzgerald upgraded Humana from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $300.00 to $460.00 in a research report on Wednesday, October 7th. Morgan Stanley raised Humana from an “underweight” rating to an “overweight” rating in a research note on Friday, October 9th. Finally, Leerink Partners upgraded Humana from a “market perform” rating to an “outperform” rating and set a $513.00 price objective on the stock in a report on Thursday, July 30th. Twenty-one investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $458.96.

More Humana News

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.