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Humana

Humana (HUM) Q2 2026 Earnings

Reported Jul 29, 2026 at 6:19 AM ET · SEC Source

Q2 26 EPS

$7.61

Q2 26 Revenue

$40.87B

vs S&P Since Q2 26

-7.7%

TRAILING MARKET

HUM -1.8% vs S&P +6.0%

Market Reaction

Did HUM Beat Earnings? Q2 2026 Results

Humana posted a broadly solid second quarter, with adjusted EPS of $7.61 marking the fifth consecutive period the managed care giant has beaten consensus estimates, as revenue surged 26.2% year over year to $40.87 billion, fueled primarily by a surge… Read more Humana posted a broadly solid second quarter, with adjusted EPS of $7.61 marking the fifth consecutive period the managed care giant has beaten consensus estimates, as revenue surged 26.2% year over year to $40.87 billion, fueled primarily by a surge in individual Medicare Advantage membership, which climbed to 6.45 million from 5.23 million a year ago. The Insurance segment benefit ratio of 91.2% landed in line with management's guidance of slightly above 91%, though it crept higher from 89.9% in Q2 2025, weighed down by 2026 Star Ratings revenue headwinds and a significant decline in favorable prior-period reserve development, which fell to $53 million from $161 million a year earlier. Against that backdrop, a securities fraud lawsuit tied to allegations that the company misled investors about rising utilization costs continues to move through the courts, adding legal overhang to an otherwise operationally active quarter. Looking ahead, Humana reaffirmed full-year adjusted EPS guidance of at least $9.00, while cautioning that Q3 adjusted EPS is expected to be approximately negative $1.00, with management pointing to 2027 Medicare Advantage bids as a key lever in returning to a sustainable pre-tax margin of at least 3% by 2028.

Key Takeaways

  • • Membership growth across Medicare businesses in 2026
  • • Higher per member MA and stand-alone PDP premiums driven by increased MA benchmark funding from CMS and increased Part D direct subsidy from the Inflation Reduction Act
  • • Increased payor-agnostic client base across the CenterWell platform
  • • Operating leverage from membership growth combined with tactical cost cutting and transformation initiatives
  • • Group MA recontracting efforts for the 2026 plan year improving benefit ratio
  • • Insurance segment operating cost ratio improved to 7.1% from 8.3% year-over-year
  • • Slight favorability in inpatient costs, particularly among members engaged with value-based providers
  • • CenterWell Home Health episodic admissions grew 5.6% year-over-year in Q2
  • • CenterWell Pharmacy increased volumes via Humana membership growth, industry-leading mail order penetration, and agnostic client expansion in Specialty, Direct to Consumer, and Direct to Employer channels
  • • 40-basis point year-over-year improvement in CenterWell Primary Care patient retention rate

HUM Forward Guidance & Outlook

Humana affirms FY 2026 Adjusted EPS guidance of 'at least $9.00' while revising GAAP EPS guidance to 'at least $6.52' from 'at least $8.36'. FY 2026 consolidated revenue guidance is 'at least $160 billion' with Insurance segment revenue of 'at least $155 billion' and CenterWell segment revenue of 'at least $25 billion'. The Insurance segment benefit ratio is guided at 92.75% +/- 25 bps. Individual MA membership is expected to grow approximately 25% over 2025 year-end, Group MA by approximately 150,000, individual Medicare stand-alone PDP by approximately 1,000,000, and state-based contracts by 25,000 to 100,000. Insurance segment income from operations is expected to be approximately breakeven. CenterWell segment income from operations is guided at $1.3B to $1.8B GAAP and $1.5B to $2.0B non-GAAP. Operating cash flows are expected at $2.5B to $2.9B with capital expenditures of approximately $650 million. Q3 2026 Adjusted EPS is expected to be approximately negative $1.00, or just over negative 10% of FY Adjusted EPS, with Q3 Insurance segment benefit ratio slightly above 94% and Q3 consolidated benefit ratio slightly above the Insurance segment benefit ratio. The company expects 2027 individual MA bids will drive meaningful progress toward returning to a sustainable pre-tax margin of at least 3% in 2028. A virtual investor update is planned for December 10, 2026. The statewide Illinois Medicaid managed care contract is expected to go live in January 2027.

24/7 Wall St

HUM YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

HUM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“The first half of the year went well, and we're right where we said we'd be at Investor Day last year. When we get the clinical care right and run the business more efficiently, everything else follows—stronger earnings and better health and experiences for the people we serve.”

— Jim Rechtin, Q2 2026 Earnings Press Release

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