Humana Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did HUM Beat Earnings? Q1 2026 Results
Humana posted a clean beat to open 2026, with first-quarter adjusted EPS of $10.31 edging past the $10.20 consensus estimate by 1.05%, extending the managed-care giant's streak of beating EPS expectations to four consecutive quarters. Revenue climbed 23.5% year over year to $39.65 billion, ahead of the $39.39 billion consensus by 0.67%, as a surge in Medicare Advantage enrollment, with individual MA membership up roughly 22% year-to-date, combined with higher per-member premiums from increased CMS benchmark funding to drive the topline expansion. The Insurance segment benefit ratio of 89.4% came in slightly favorable to management's guidance, with early cost trend data running a touch better than expected across both new and existing membership. Looking ahead, Humana affirmed its full-year 2026 adjusted EPS target of at least $9.00 and consolidated revenue guidance of at least $160.00 billion, while trimming its GAAP EPS outlook to at least $8.36 from $8.89, reflecting charges tied to value creation initiatives.
- Individual MA membership growth of approximately 1,144,000 (22%) year-to-date driven by new sales and improved retention
- Higher per-member MA and stand-alone PDP premiums from increased CMS benchmark funding and IRA Part D direct subsidy
- Insurance segment benefit ratio of 89.4% slightly favorable to 'just under 90%' guidance
- Adjusted consolidated operating cost ratio improved 50 bps YoY to 10.0% from operating leverage and cost-cutting initiatives
- Insurance segment operating cost ratio improved 90 bps YoY to 7.3%
- Medical and pharmacy cost trends slightly better than expectations across new and existing membership
- CenterWell primary care patient growth of 110,500 sequentially (over 22%)
- Prior period favorable medical claims reserve development of $389 million in Q1 2026 vs. $477 million in Q1 2025
“We've had a solid start to the year and feel good about how our operating execution and transformation initiatives are setting us up for the future.”
Humana CEO, on the earnings call
Forward Guidance & Outlook
Humana affirmed its FY 2026 Adjusted EPS guidance of 'at least $9.00' while revising GAAP EPS guidance to 'at least $8.36' from 'at least $8.89'. The company affirmed consolidated revenue guidance of 'at least $160 billion', Insurance segment revenue of 'at least $155 billion', and CenterWell segment revenue of 'at least $25 billion'. FY 2026 Insurance segment benefit ratio is guided at 92.75% +/- 25 bps, and consolidated operating cost ratio at 10.0% +/- 25 bps. Individual MA membership growth is expected at approximately 25%, group MA growth of approximately 150,000, stand-alone PDP growth of approximately 1 million, and state-based contracts growth of 25,000 to 100,000. Insurance segment income from operations is guided to approximately breakeven on a GAAP basis, while CenterWell segment income from operations is guided at $1.3B to $1.8B GAAP and $1.5B to $2.0B non-GAAP. Q2 2026 earnings are expected to be approximately 80% to 85% of full-year Adjusted earnings, with Q2 Insurance segment benefit ratio expected slightly above 91%. Cash flows from operations are guided at $2.5 billion to $2.9 billion and capital expenditures at approximately $650 million. The company continues to target delivering a stable and compelling MA margin and unlocking earnings potential by 2028 as outlined at the 2025 Investor Day.
HUM YoY Financials
HUM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.