Humana Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.31%.
Did HUM Beat Earnings? Q4 2025 Results
Humana delivered a narrow beat in a bruising fourth quarter, posting an adjusted loss of $3.96 per share against a consensus estimate of $3.99, while revenue of $32.52 billion topped expectations of $32.08 billion and grew 11.3% year over year. The modest outperformance offered little shelter from the underlying pressures driving the loss, chiefly an Insurance segment benefit ratio of 93.1% that reflected unfavorable mix shifts toward higher-cost state-based contracts and stand-alone PDP products, compounded by non-cash impairment charges of $221.00 million and value creation initiative charges of $129.00 million. Looking ahead, the company's 2026 outlook carries significant weight, with adjusted EPS guided to at least $9.00, a steep step down from full-year 2025's $17.14, as Star Ratings headwinds weigh on Medicare Advantage bonus payments; notably, the stock has been trading near its 52-week low as investors assess the depth of that earnings reset. Consolidated revenues are expected to reach at least $160.00 billion, supported by anticipated individual Medicare Advantage membership growth of approximately 25%.
- Higher per member Medicare and state-based contract premiums driven by increased direct subsidy from the Inflation Reduction Act
- Membership growth in state-based contracts and stand-alone PDP businesses
- Individual Medicare Advantage pricing inclusive of plan exits and benefit design changes offset claims trend
- Higher favorable prior period medical claims reserve development of $1,029 million in FY 2025 vs $701 million in FY 2024
- Administrative cost efficiencies from value creation initiatives
- CenterWell Senior Primary Care patient growth of over 25% including The Villages Health acquisition
“We were pleased with our solid financial performance and operational progress in 2025. We continue to feel good about our consumer-focused strategy and our individual Medicare Advantage membership growth in 2026, which will allow us to build for the future with even better outcomes and experiences.”
Humana CEO, on the earnings call
Forward Guidance & Outlook
Humana introduced FY 2026 GAAP EPS guidance of 'at least $8.89' and Adjusted EPS of 'at least $9.00', representing a significant year-over-year decline from FY 2025 Adjusted EPS of $17.14, driven by the Star Ratings headwind for Bonus Year 2026 net of mitigation. Consolidated revenues are expected to be at least $160 billion. The company anticipates individual Medicare Advantage membership growth of approximately 25% in 2026, with the Insurance segment benefit ratio expected at 92.75% plus or minus 25 basis points. The consolidated operating cost ratio is expected at 10.0% plus or minus 25 basis points. Operating cash flows are guided at $2.5 billion to $2.9 billion with capital expenditures of approximately $650 million. CenterWell Primary Care expects to add 60-70 clinics and 120,000-140,000 patients. Group MA membership expected to grow approximately 150,000 and stand-alone PDP membership by approximately 1 million. The company expects first quarter earnings to be approximately 110%-115% of expected FY 2026 Adjusted earnings. Blended medical and pharmacy cost trends are anticipated in the high single digits for 2026. The company intends to maintain its dividend flat year over year and conduct minimal share repurchase activity.
HUM YoY Financials
HUM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.