Humana Inc.'s Stock Analysis

Humana Reports 2026 Medicare Advantage Star Ratings and Earnings Guidance

Humana has approximately 1.2 million members, or 20%, enrolled in Medicare Advantage plans rated 4 stars and above for 2026, maintaining an average Star rating of 3.61. The company has seen an increase in the percentage of members in 4.5 star plans, rising from 3% in 2025 to 14% in 2026. Despite some dissatisfaction with the current ratings, Humana is implementing a contract diversification strategy expected to improve future ratings and membership growth. The company anticipates a return to Top Quartile results for the 2027 ratings based on operational improvements and strategic planning.

Humana has affirmed its earnings guidance for fiscal year 2025, projecting approximately $13.77 in diluted earnings per share and about $17.00 in adjusted earnings per share. This guidance aligns with previously issued estimates and reflects the company's ongoing financial planning. While the adjusted EPS is a non-GAAP measure, it is used by management to assess core operating performance. Changes to GAAP EPS guidance are anticipated in the upcoming third quarter earnings release, due to the company's strategic initiatives.

Oct 02, 2025 12:00:03

Humana Reaffirms Earnings Guidance for Fiscal Year 2025

Humana Inc. has scheduled meetings with investors and analysts from September 1 to September 30, 2025, during which it will reaffirm its earnings guidance. The Company expects approximately $13.77 in diluted earnings per common share and about $17.00 in adjusted earnings per common share for the fiscal year ending December 31, 2025. This guidance aligns with previously issued estimates from July 30, 2025.

The Company will not provide comments on the 2026 Medicare Advantage Star Ratings until the final data is released by the Centers for Medicare and Medicaid Services in October. Humana includes adjusted earnings per share, a non-GAAP financial measure, to offer a clearer view of its core operating performance over time, although it advises that this should not replace GAAP earnings per share. A reconciliation of GAAP EPS to Adjusted EPS is provided, noting that guidance excludes impacts from changes that cannot be estimated at this time.

Aug 29, 2025 16:30:11

Humana Reports Q2 2025 Results and Adjusts Financial Guidance

Humana Inc. reported its financial results for the second quarter of 2025, revealing earnings per share (EPS) of $4.51 on a GAAP basis and $6.27 on an adjusted basis. The company updated its full-year 2025 guidance, lowering GAAP EPS expectations from approximately $14.68 to $13.77 while raising adjusted EPS guidance from approximately $16.25 to $17.00. Additionally, Humana increased its consolidated revenue guidance to at least $128 billion, up from the previous range of $126 billion to $128 billion. The insurance segment's benefit ratio was reported at 89.9%, consistent with prior expectations, and the company anticipates a decline in individual Medicare Advantage membership by up to 500,000 members, less than the earlier estimate of 550,000.

Humana continues to expand its operations in CenterWell and Medicaid, with CenterWell Pharmacy gaining access to 17 new limited distribution drugs and CenterWell Primary Care expecting net patient growth of 50,000 to 70,000 for FY 2025. The company recently launched a Virginia Medicaid contract, creating new market opportunities. Management emphasized confidence in its pricing strategy and ongoing commitment to enhancing customer experience and operational efficiency. These developments may impact investor sentiment and stock performance.

Jul 30, 2025 06:07:27

Humana Reports Q1 2025 Results and Revises EPS Guidance

Humana Inc. has reported its financial results for the first quarter of 2025, showing earnings per share (EPS) of $10.30 on a GAAP basis and an adjusted EPS of $11.58. The company noted that its Insurance segment benefit ratio was 87.4 percent, aligning with previous expectations. Humana has revised its GAAP EPS guidance for the full year 2025 to approximately $14.68, down from $15.88, while maintaining its adjusted EPS guidance at approximately $16.25. Additionally, the company anticipates a decline in individual Medicare Advantage membership by about 550,000 due to exiting unprofitable plans and counties, but remains confident in its pricing strategy for sustainable long-term value creation.

The company is also making progress in its long-term strategy, particularly within its CenterWell and Medicaid businesses. Notable achievements include being selected as the fulfillment pharmacy for NovoCare® Pharmacy’s weight loss medication and receiving an intent to award a contract for a new Fully Integrated Dual Eligible Special Needs Plan program in Illinois. Humana will discuss these results and future expectations in a conference call scheduled for this morning.

Apr 30, 2025 06:05:50

Humana Announces $1.25 Billion Debt Offering and Use of Proceeds

Humana Inc. has priced a public offering of $1.25 billion in senior notes, which includes $750 million of 5.550 percent notes due in 2035 and $500 million of 6.000 percent notes due in 2055. The expected net proceeds from this offering are approximately $1.231 billion, which will be primarily used to repay existing senior notes due in April 2025. The transaction is anticipated to close on March 5, 2025, pending customary closing conditions.

On the negative side, Humana faces significant challenges, including a potential decline in the ratings of its Medicare Advantage plans, which could impact future quality bonus payments. The company is also involved in legal disputes and regulatory risks that may affect its operations and financial position. Furthermore, there are concerns regarding the competitive landscape in the healthcare sector, which could hinder its ability to attract and retain talent and maintain satisfactory relationships with care providers.

Mar 05, 2025 17:18:40

Humana Reports Q4 2024 Net Loss Per Share of $5.76

Humana Inc. reported a net loss per share of $5.76 for the fourth quarter of 2024, with an adjusted net loss per share of $2.16. The company's insurance segment maintained an adjusted benefit ratio of 91.9%, aligning with expectations despite a significant decline in individual Medicare Advantage membership anticipated for 2025, projected at approximately 550,000 members. The company reaffirmed its adjusted earnings guidance for 2025, estimating a GAAP EPS of about $15.88 and an adjusted EPS of approximately $16.25, factoring in further investments for operational excellence.

Conversely, the company faced challenges with a consolidated pretax loss of $862 million for the fourth quarter, compared to a loss of $591 million in the same quarter last year. The exit from unprofitable plans and counties is expected to contribute to the decline in Medicare Advantage memberships, which may adversely affect future revenues. Additionally, Humana's overall earnings per share for fiscal year 2024 dropped to $9.98 on a GAAP basis, down from $20.00 in the previous year, highlighting the financial difficulties faced during this period.

Feb 11, 2025 06:41:21

Humana Announces CFO Transition, Maintains $16.00 EPS Guidance

Humana Inc. has announced that Celeste Mellet will succeed Susan Diamond as Chief Financial Officer (CFO) effective January 11, 2025. Diamond, who has served as CFO for over three years and has been with the company for 18 years, will assist in the transition until the end of 2025. The leadership change is seen as a strategic move to align the company for future growth and commitments, with CEO Jim Rechtin expressing gratitude for Diamond's contributions during her tenure, particularly during challenging periods like COVID-19.

Celeste Mellet brings extensive experience from her previous roles, including CFO positions at Global Infrastructure Partners and Evercore. While the leadership transition is viewed positively, the company reiterated its adjusted earnings per share (EPS) guidance of 'at least $16.00' for 2024 and indicated that 2025 results are expected to be in line with 2024. The announcement comes with a commitment to an Investor Day in May 2025, but there are uncertainties mentioned regarding future performance, as highlighted in the cautionary statements.

Dec 03, 2024 08:07:43

Humana Inc. Reports Third Quarter 2024 Financial Results

Humana Inc. reported earnings per share (EPS) of $3.98 for the third quarter of 2024, with an adjusted EPS of $4.16. The company has updated its full-year EPS guidance, now expecting at least $12.89 on a GAAP basis and at least $16.00 on an adjusted basis. Additionally, Humana anticipates a growth of approximately 265,000 in individual Medicare Advantage memberships, an increase of 40,000 from previous estimates, reflecting a projected growth rate of around 5 percent. The company also affirmed its insurance segment benefit ratio at approximately 90 percent.

On the downside, Humana's consolidated pretax income decreased significantly to $651 million from $1,098 million in the same quarter last year, and the year-to-date pretax income also fell from $3,974 million to $2,583 million. The diluted EPS showed a decline from $6.71 in Q3 2023 to $3.98 in Q3 2024, and year-to-date EPS dropped from $24.26 to $15.72. Furthermore, the benefits expense ratio increased from 86.6% to 89.9%, indicating higher costs relative to revenues, which could impact profitability.

Oct 30, 2024 06:42:43

Humana Welcomes Gordon Smith to Board of Directors

Humana Inc. has announced the election of Gordon Smith to its Board of Directors, highlighting his extensive experience in managing large organizations. Smith's background includes significant roles at JPMorgan Chase, where he oversaw various operations, and at American Express, making him a valuable addition to the board as the company seeks to enhance its strategic direction.

The company expressed confidence that Smith's operational expertise will contribute positively to its goals, particularly in improving customer experiences and driving growth in its Medicare Advantage and health care services. His election increases the board's membership to 12, reflecting Humana's commitment to strong leadership and strategic oversight as it aims for sustainable growth and value for shareholders.

Oct 23, 2024 16:20:28

Humana Reports Mixed Q2 2024 Financial Results and Guidance

Humana's Q2 2024 earnings per share (EPS) fell to $5.62, down from $7.66 last year, prompting a revision of full-year EPS guidance from $13.93 to $12.81. However, the company raised its Medicare Advantage membership growth forecast by 75,000, now projecting a total increase of 225,000. Despite declining overall earnings, the firm maintained its adjusted EPS guidance of approximately $16.00, reflecting some stability in its insurance segment.

Jul 31, 2024 06:41:24