Humana (NYSE:HUM) Issues Quarterly Earnings Results, Beats Estimates By $0.35 EPS

Humana (NYSE:HUM) issued its earnings results on Wednesday. The insurance provider reported $7.61 EPS for the quarter, beating the consensus estimate 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 company had revenue of $40.89 billion during the quarter, compared to analysts’ expectations of $40.57 billion. During the same quarter in the previous year, the company posted $6.27 EPS. The business’s revenue for the quarter was up 26.2% compared to the same quarter last year.

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 Price Performance

Shares of HUM stock traded down $29.75 during trading hours on Wednesday, hitting $358.95. 2,117,933 shares of the company’s stock were exchanged, compared to its average volume of 1,801,411. The company has a market capitalization of $43.10 billion, a PE ratio of 38.39, a PEG ratio of 2.07 and a beta of 0.71. The business’s 50 day simple moving average is $367.16 and its 200-day simple moving average is $266.44. The company has a current ratio of 1.77, a quick ratio of 1.77 and a debt-to-equity ratio of 0.66. Humana has a 12-month low of $163.11 and a 12-month high of $428.88.

Hedge Funds Weigh In On Humana

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Larson Financial Group LLC boosted its stake 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 acquiring an additional 81 shares during the last quarter. Teza Capital Management LLC grew its stake in Humana by 9.4% in the second quarter. Teza Capital Management LLC now owns 1,255 shares of the insurance provider’s stock valued at $307,000 after purchasing an additional 108 shares during the last quarter. Sunbelt Securities Inc. lifted its position in Humana by 18.1% during the 3rd quarter. Sunbelt Securities Inc. now owns 719 shares of the insurance provider’s stock worth $187,000 after acquiring an additional 110 shares during the period. Transamerica Financial Advisors LLC grew its holdings in 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 acquiring an additional 130 shares during the period. Finally, Fulcrum Asset Management LLP purchased a new position in Humana during the third quarter worth approximately $42,000. 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: 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

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on HUM. Royal Bank Of Canada lifted their target price on Humana from $246.00 to $415.00 and gave the company a “sector perform” rating in a research report on Thursday, July 9th. Truist Financial raised their target price on shares of Humana from $320.00 to $415.00 and gave the stock a “hold” rating in a report on Tuesday, July 14th. TD Cowen upped their price target on shares of Humana from $211.00 to $350.00 and gave the stock a “hold” rating in a report on Tuesday, July 14th. William Blair assumed coverage on Humana in a research report on Wednesday, May 20th. They set an “outperform” rating on the stock. Finally, Zacks Research upgraded shares of Humana from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $331.09.

Humana Company Profile

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.