Humana publishes Q3 2026 earnings call transcript
HUM•Humana raised its 2026 adjusted earnings outlook to at least $9.50 per share from at least $9, citing favorable costs. Management expects medical cost trends of 8%–9% in 2027 and membership growth, with pricing expected to improve individual Medicare Advantage margins.
1. Outlook and expectations
Humana raised its 2026 adjusted earnings outlook to at least $9.50 per share from at least $9, supported by favorable costs. On its November 6 third-quarter call, management said it expects membership growth in 2027 and material individual Medicare Advantage margin improvement driven by pricing, despite continued Star Ratings pressure. Medical cost trends are projected at 8%–9% next year, versus 7%–8% this year, reflecting higher prescription drug costs; exceptional Star Ratings are expected to provide a one-time 2028 earnings benefit above targets.
