Humana (NYSE:HUM) Posts Earnings Results, Beats Estimates By $0.30 EPS

08 Nov 2026, 13:56 by Mitch Edgeman · The Markets Daily

Humana (NYSE:HUM – Get Free Report) posted its quarterly earnings data on Friday. The insurance provider reported ($0.70) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($1.00) by $0.30, FiscalAI reports. The company had revenue of $41.16 billion for the quarter, compared to the consensus estimate of $40.87 billion. Humana had a net margin of 0.88% and a return on equity of 11.20%. The firm’s revenue was up 26.1% compared to the same quarter last year. During the same quarter last year, the firm posted $3.24 earnings per share. Humana updated its FY 2026 guidance to 9.500- EPS.

Here are the key takeaways from Humana’s conference call:

Humana raised its 2026 adjusted EPS outlook to at least $9.50, from at least $9, citing cost trends at the lower end of its expected range and better-than-expected performance. The company said it remains on track to double individual Medicare Advantage pre-tax margin this year, excluding the STARS headwind.
Early 2027 enrollment results are ahead of Humana’s expectations, and the company now anticipates membership growth, though it said it is too early to estimate the amount. Management expects meaningful individual MA margin improvement next year, supported in part by product pricing and operating changes.
Humana reported a 4.17 member-weighted STARS rating for bonus year 2028, exceeding its top-quartile goal. It expects a one-time 2028 earnings tailwind, with some directed to investments and some potentially passed through to shareholders; the amount has not yet been quantified.
Management expects medical cost trend to rise to 8%–9% in 2027, from 7%–8% in 2026, including 14%–15% growth in Part D costs tied to the health-technology pipeline. Humana said it has priced for the expected costs, but the higher trend remains a cost pressure.
The new BlackRock joint venture is expected to improve balance-sheet efficiency, reducing Humana’s GAAP debt-to-cap ratio by about 130 basis points in the fourth quarter and eliminating the need to fund a previously expected 2027 clinic put option. Humana also expects about $900 million in pre-tax proceeds from the Gentiva divestment.

Humana Stock Performance

HUM opened at $432.69 on Friday. The firm has a market cap of $51.96 billion, a P/E ratio of 42.09, a PEG ratio of 2.67 and a beta of 0.65. Humana has a 1-year low of $163.11 and a 1-year high of $456.50. The company has a 50 day simple moving average of $403.96 and a two-hundred day simple moving average of $312.27. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74.

Humana Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 29th. Shareholders of record on Thursday, December 24th will be issued a dividend of $0.8850 per share. The ex-dividend date of this dividend is Thursday, December 24th. This represents a $3.54 annualized dividend and a yield of 0.8%. Humana’s payout ratio is currently 34.44%.

Key Headlines Impacting Humana

Here are the key news stories impacting Humana this week:

Positive Sentiment: Humana reported a third-quarter loss of $0.70 per share, narrower than analysts’ expected $1.00 loss. Revenue rose 26.1% year over year to $41.16 billion, topping estimates. Article: HUM Q3 Earnings Beat Estimates on Strong Insurance Performance
Positive Sentiment: The company raised its full-year 2026 adjusted EPS forecast to at least $9.50, above the roughly $9.13 consensus estimate. Reports cited lower-than-expected medical costs as a factor supporting the improved outlook. Article: Humana Raises 2026 Earnings Outlook
Positive Sentiment: Humana expects Medicare Advantage membership to grow again in 2027, signaling continued expansion in a key business. Its CenterWell unit also helped drive the quarterly performance. Article: Humana Expects Another Year of Medicare Advantage Membership Growth
Neutral Sentiment: Humana’s 2026 revenue guidance of $160 billion was below analysts’ $162.5 billion estimate, tempering the otherwise favorable earnings and outlook news. Article: Humana Third-Quarter Earnings
Negative Sentiment: Despite beating estimates, Humana posted a loss compared with earnings of $3.24 per share a year earlier. Reports also noted that costs associated with new Medicare enrollees remain a concern. Article: Humana Profits Dip as Costs Rise from New Medicare Enrollees

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. HSBC cut shares of Humana to a “hold” rating in a research note on Thursday, July 30th. Deutsche Bank Aktiengesellschaft started coverage on Humana in a research note on Thursday, July 30th. They issued a “hold” rating for the company. Mizuho raised their target price on Humana from $468.00 to $495.00 and gave the stock an “outperform” rating in a report on Tuesday, October 13th. Lake Street Capital began coverage on Humana in a research report on Thursday, July 30th. They set a “buy” rating on the stock. Finally, Bank of America raised Humana from a “neutral” rating to a “buy” rating and set a $500.00 price target for the company in a report on Wednesday, July 29th. Twenty-one investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $458.96.

View Our Latest Report on Humana

Humana Company Profile

(Get Free Report)

Humana Inc is a U.S. health and wellness company that provides health insurance and healthcare services. Its insurance offerings include Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid and employer-sponsored plans.

The company also provides care through CenterWell, its healthcare services brand, which includes primary care, home health and pharmacy services. Its insurance and care offerings are available in markets across the United States, with availability varying by product and location.