HUM: Higher 2026 outlook, standout Stars results and early AEP strength support margin recovery

Humana Inc (HUM) raised its 2027 EPS outlook, citing cost savings, improved product positioning, and lower onboarding costs. The company expects higher core trends and Part D trends but faces Stars rating challenges. It plans to invest in growth and return capital to shareholders, with more details expected in December. Management also discussed cost pressures in its CenterWell PCO business and competitive dynamics in Medicare Advantage.

Humana reported 3Q 2026 revenue of $41.16B, up 26.1% YoY, driven by Medicare membership growth and higher premiums. Net income fell 16.9% to $162M, with EPS at $1.33. Insurance membership grew 20.3%, but the segment saw a $303M operating loss. CenterWell revenue rose 40.4% to $1.9B, though costs increased.

Humana Inc. raised its 2026 adjusted EPS outlook due to strong operational performance and medical cost trends. The company is focusing on top quartile Star ratings and expects 2027 membership growth. A joint venture with BlackRock aims to improve balance sheet efficiency. Humana anticipates a 3%+ individual MA margin by 2028, with 2027 showing progress. The divestment of Gentiva is expected to close in Q4 2026, providing $900 million in pretax proceeds.

Humana (HUM) reported Q3 2026 earnings with adjusted EPS of $17.17 YTD and a Q3 loss of $0.70, down from $3.24 YoY. Full-year adjusted EPS guidance raised to at least $9.50. GAAP EPS for Q3 was $1.33, down from $1.62 in 2025. The company expects $900M in pretax proceeds from Gentiva divestment. Medicare Advantage enrollment and Star ratings improved, but Part D cost trends are expected to rise to 14-15% in 2027.

Humana reported better-than-expected quarterly results and raised its 2026 adjusted EPS forecast to at least $9.50 from $9. Medical and pharmacy costs rose less than expected. The company expects 3% pretax margins in Medicare Advantage by 2028. Shares fell 1.4% premarket. Year-to-date, the stock is up 61%.

Humana (HUM) reported Q3 2026 adjusted loss of $0.70 per share, narrower than estimates. Revenue rose 26.4% YoY to $40.83B, driven by Medicare growth. Operating costs improved, but benefit ratio deteriorated. HUM raised 2026 EPS guidance to at least $9.50.