Humana (NYSE:HUM) Posts Earnings Results, Beats Estimates By $0.05 EPS

Humana (NYSE:HUM) issued its earnings results on Wednesday. The insurance provider reported ($3.96) earnings per share for the quarter, beating the consensus estimate of ($4.01) by $0.05, FiscalAI reports. Humana had a net margin of 0.92% and a return on equity of 11.43%. The firm had revenue of $32.64 billion for the quarter, compared to analysts’ expectations of $32.08 billion. During the same quarter last year, the company earned ($2.16) earnings per share. The firm’s revenue was up 11.3% compared to the same quarter last year. 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 NYSE HUM traded up $3.06 during midday trading on Friday, hitting $181.89. The company had a trading volume of 741,238 shares, compared to its average volume of 2,354,983. The firm has a market capitalization of $21.88 billion, a price-to-earnings ratio of 18.52, a price-to-earnings-growth ratio of 1.95 and a beta of 0.44. Humana has a twelve month low of $169.61 and a twelve month high of $315.35. The business has a 50-day simple moving average of $246.13 and a two-hundred day simple moving average of $261.18. The company has a quick ratio of 2.02, a current ratio of 2.00 and a debt-to-equity ratio of 0.70.

Hedge Funds Weigh In On Humana

Hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp boosted its position in Humana by 1.8% during the fourth quarter. State Street Corp now owns 5,462,549 shares of the insurance provider’s stock worth $1,403,877,000 after purchasing an additional 97,211 shares in the last quarter. Invesco Ltd. raised its stake in shares of Humana by 1.3% during the 3rd quarter. Invesco Ltd. now owns 2,043,460 shares of the insurance provider’s stock worth $531,647,000 after buying an additional 25,938 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Humana by 4.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,207,759 shares of the insurance provider’s stock worth $309,343,000 after buying an additional 50,403 shares in the last quarter. Northern Trust Corp grew its stake in Humana by 1.3% in the 3rd quarter. Northern Trust Corp now owns 1,192,605 shares of the insurance provider’s stock valued at $310,280,000 after acquiring an additional 15,230 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Humana by 0.8% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,184,211 shares of the insurance provider’s stock valued at $303,312,000 after acquiring an additional 9,528 shares during the last quarter. 92.38% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Revenue and segment strength — Humana reported higher revenue on CenterWell strength in Q4, which supports longer‑term growth expectations. Read More.
• Positive Sentiment: Membership growth opportunity — Management projects sharp Medicare Advantage membership expansion (outlined as ~25% growth for 2026), which could rebuild margins as scale improves. Read More.
• Positive Sentiment: Some analysts still bullish — Jefferies kept a Buy rating with a trimmed but still above‑market $235 PT, providing upside case support. Read More.
• Neutral Sentiment: Earnings call and transcripts available — Management framed the results as a tradeoff: near‑term profit pressure from star ratings and MA costs while prioritizing membership growth and margin recovery; read the call for detail. Read More.
• Neutral Sentiment: Mixed mid‑range price targets — Several firms cut targets into the high‑$100s/low‑$200s (Evercore $180, Leerink $185, Cantor $201), leaving a clustered range near the current price. Read More.
• Negative Sentiment: Analyst downgrades/price-target cuts — TD Cowen cut its PT sharply to $173 and kept a Hold; JPMorgan cut its PT to $180 and kept Neutral. Those revisions signal lower near‑term expectations and likely weigh on sentiment. Read More. Read More.
• Negative Sentiment: Weak 2026 profit outlook and margin headwinds — Management signaled sharply lower earnings for 2026 as star ratings and elevated MA costs pressure profitability, prompting multiple firms to slash forecasts. Read More.
• Negative Sentiment: Q4 loss and market impact — Humana reported a larger Q4 loss (reported ~$796M) and the outlook pushed the stock to a 52‑week low, reinforcing downside near term. Read More. Read More.

Wall Street Analyst Weigh In

HUM has been the subject of several recent analyst reports. UBS Group reduced their price objective on shares of Humana from $285.00 to $195.00 and set a “neutral” rating for the company in a research report on Thursday. Barclays reiterated an “underperformer” rating on shares of Humana in a research report on Monday, January 5th. Raymond James Financial set a $201.00 price objective on Humana in a research note on Thursday. Oppenheimer set a $250.00 price target on shares of Humana in a research report on Thursday. Finally, TD Cowen dropped their price objective on shares of Humana from $260.00 to $173.00 and set a “hold” rating on the stock in a research note on Friday. Seven research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $239.46.

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.