Humana beats Q2 adjusted EPS estimates, affirms FY adjusted EPS guidance
HUM•Analyst coverage
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 18 "hold" and 2 "sell" or "strong sell"
- The average consensus recommendation for the managed healthcare peer group is "buy."
- Wall Street's median 12-month price target for Humana Inc is $344.00, about 11.5% below its July 28 closing price of $388.71
- The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 16 three months ago
Quarterly results and outlook
- U.S. health insurer's Q2 adjusted EPS beat analyst expectations
- Q2 revenue rose to $40.9 bln from $32.4 bln a year earlier
- Company affirms full-year adjusted EPS guidance, revises down GAAP EPS outlook
Humana affirms FY 2026 adjusted EPS guidance of at least $9.00.
The company revises FY 2026 GAAP EPS guidance to at least $6.52 from at least $8.36.
Humana expects FY 2026 Medicare Advantage membership growth of about 25% over 2025.
Result drivers and key details
- CENTERWELL AND MEDICAID EXPANSION - Co cited continued expansion of CenterWell and Medicaid businesses, including 27% growth in CenterWell Senior Primary Care patients and new Illinois Medicaid contract
- BENEFIT RATIO MANAGEMENT - Insurance segment benefit ratio of 91.2% was in line with management's guidance, indicating medical cost management met expectations
