Humana's Strong Quarter Fails To Impress
Humana Inc. (NYSE: HUM ) stock fell on Wednesday after the health insurer said it expects lower profits in fiscal 2026. The company reported second-quarter adjusted income of $7.61 per share, up from $6.27 last year and above the consensus estimate of $7.22. Humana reported sales of $40.89 billion, up from $32.39 billion a year ago, beating the consensus of $40.61 billion. Medicare Advantage Membership Continues To Drive Growth At Humana The insurer ended the quarter with 17.91 million in total medical membership, up from 14.84 million a year ago. Individual Medicare Advantage membership rose 23% to 6.45 million from 5.23 million a year earlier. The total number of Medicare members was 11.13 million, up from 8.23 million the previous year. Read Also: UnitedHealth Rally Sparks Bullish Case for Healthcare ETFs Despite Medicare Advantage Losses Operating Costs Improve As Efficiency Effor...
Humana Inc. (NYSE: HUM ) stock fell on Wednesday after the health insurer said it expects lower profits in fiscal 2026. 22. 61 billion.
84 million a year ago. 23 million a year earlier. 23 million the previous year. 2%, consistent with expectations of slightly above 91%.
1%, each representing a 120-basis point (bps) reduction year over year. The reduction was driven by operating leverage from membership and revenue growth, along with tactical cost-cutting and transformation efforts, which remain on track. 94. 55.
75%, plus or minus 25 basis points, and its consolidated operating cost-ratio outlook of 10%, plus or minus 25 basis points. Humana continues to expect fiscal 2026 individual Medicare Advantage membership growth of approximately 25% over 2025. The company expects Group Medicare Advantage growth of approximately 150,000 and Individual Medicare stand-alone PDP growth of roughly 1,000,000. Humana expects 2026 sales of at least $160 billion, including insurance segment sales of at least $155 billion, and CenterWell segment revenues of at least $25 billion.
Investors Wanted Bigger Guidance Increase Investor expectations for health insurers had risen after peers such as UnitedHealth Group Inc. 07 during premarket trading on Wednesday, according to Pro data. Photo by T. Schneider via Shutterstock Read Also: Visa Delivers Reassuring Read on the US Consumer: No Signs of Spending Weakness