Humana Reports Third Quarter 2026 Financial Results
HUMANA INC (HUM) filed an SEC Form 8-K — Results of Operations and Financial Condition. n e w s r e l e a s e Exhibit 99.1 Humana Inc. 101 East Main Street P.O. Box 1438 Louisville, KY 40202 http://www.humana.com FOR MORE INFORMATION CONTACT: Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail: LStamper@humana.com Mark Taylor Humana Corporate Communications
How this was made
The 30-second read
Why it matters
The raised guidance signals stronger profitability, likely prompting buying interest and a price uptick.
Market read
Humana's earnings beat and raised guidance are material for investors and may influence the broader health‑care sector.
What to watch
Potential headwinds from Star Ratings bonus reductions and Medicaid cost pressures could temper earnings.
Humana Reports Third Quarter 2026 Financial Results; Raises Full Year 2026 Adjusted EPS Guidance
Humana raised FY 2026 Adjusted EPS guidance to at least $9.50 and reported a 3Q26 Insurance segment GAAP benefit ratio favorable to management's guidance, but 3Q26 Adjusted loss per share was ($0.70), Insurance segment GAAP loss from operations was ($303) million, and Adjusted pretax results were ($104) million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 consolidated pretax resultsGAAP | $216M | – | – |
| 3Q26 consolidated pretax resultsnon-GAAP | ($104) million | – | – |
| YTD 2026 consolidated pretax resultsGAAP | $2.76B | – | – |
| YTD 2026 consolidated pretax resultsnon-GAAP | $2.81B | – | – |
| 3Q26 diluted earnings per shareGAAP | $1.33 | – | – |
| 3Q26 adjusted loss per sharenon-GAAP | ($0.70) | – | – |
| YTD 2026 diluted earnings per shareGAAP | $16.84 | – | – |
| YTD 2026 adjusted diluted earnings per sharenon-GAAP | $17.17 | – | – |
| 3Q26 consolidated revenuesGAAP | $41.16B | – | – |
| 3Q26 consolidated revenuesnon-GAAP | $41.16B | – | – |
| YTD 2026 consolidated revenuesGAAP | $121.7B | – | – |
| YTD 2026 consolidated revenuesnon-GAAP | $121.7B | – | – |
| 3Q26 consolidated operating cost ratioGAAP | 11.3 % | – | – |
| 3Q26 consolidated operating cost rationon-GAAP | 11.2 % | – | – |
| YTD 2026 consolidated operating cost ratioGAAP | 10.4 % | – | – |
| YTD 2026 consolidated operating cost rationon-GAAP | 10.3 % | – | – |
| 3Q26 Insurance segment operating cost ratioGAAP | 7.7 % | – | – |
| 3Q26 Insurance segment operating cost rationon-GAAP | 7.7 % | – | – |
| YTD 2026 Insurance segment operating cost ratioGAAP | 7.4 % | – | – |
| YTD 2026 Insurance segment operating cost rationon-GAAP | 7.4 % | – | – |
| 3Q26 Insurance segment loss from operationsGAAP | ($303) million | – | – |
| 3Q26 Insurance segment loss from operationsnon-GAAP | ($299) million | – | – |
| YTD 2026 Insurance segment income from operationsGAAP | $1.95B | – | – |
| YTD 2026 Insurance segment income from operationsnon-GAAP | $1.96B | – | – |
| 3Q26 Insurance segment amortizationother | $4M | – | – |
| YTD 2026 Insurance segment amortizationother | $12M | – | – |
| 3Q26 CenterWell segment amortizationother | $6M | – | – |
| YTD 2026 CenterWell segment amortizationother | $17M | – | – |
| 3Q26 Insurance segment GAAP benefit ratioGAAP | 93.7 percent | – | – |
FY 2026 outlook
- NoteGAAP EPS: at least $15.09
- NoteAdjusted EPS: at least $9.50
What drove it
- 3Q26 Insurance segment GAAP benefit ratio was 93.7 percent, favorable to management's guidance of 'slightly above 94 percent.'
- CenterWell Senior Primary Care reported YTD growth of 146,800 patients, or 30 percent.
- YTD Medicaid membership growth was 103,600, or 7 percent, largely driven by the start of integrated Duals programs in Michigan, Illinois, and South Carolina.
- The recently announced joint venture with BlackRock replaced the previous joint ventures with Welsh, Carson, Anderson & Stowe; the company said the transaction enhances balance sheet efficiency, provides greater financial flexibility at a reduced cost of capital, and funds future growth.
- FY 2026 Adjusted EPS guidance anticipates a year-over-year decline as a result of the Star Ratings headwind for Bonus Year 2026, net of mitigation.
Concerns
- 3Q26 Adjusted loss per share was ($0.70), compared with Adjusted EPS of $3.24 in 3Q25.
- 3Q26 Adjusted pretax results were ($104) million, compared with $527 million in 3Q25.
- 3Q26 Insurance segment GAAP loss from operations was ($303) million, compared with income from operations of $251 million in 3Q25.
- The company states that FY 2026 GAAP EPS guidance could change due to ongoing value creation and other strategic initiatives.
- The company does not expect changes to FY 2026 Adjusted EPS guidance, but FY 2026 GAAP and Adjusted EPS guidance exclude future value changes that have not yet been recognized and cannot currently be reasonably estimated.
What to watch
- FY 2026 GAAP EPS guidance is at least $15.09, revised from at least $6.52.
- FY 2026 Adjusted EPS guidance is at least $9.50, raised from at least $9.00.
- The fourth-quarter recognition of the noncash initial option liability associated with the BlackRock and CenterWell Senior Primary Care joint venture.
- The Star Ratings headwind for Bonus Year 2026, net of mitigation.
- CenterWell Senior Primary Care patient growth and Medicaid membership growth.
Balance sheet and cash flow
- The noncash reversal of the net put liability of approximately $1.2 billion was reflected in the company's September 30, 2026 balance sheet.
- The initial option liability associated with the recently announced strategic joint venture with HPS Investment Partners, a subsidiary of BlackRock, and CenterWell Senior Primary Care is expected to be recorded in the fourth quarter of 2026.
Analysis
Humana reported 3Q26 GAAP diluted EPS of $1.33, compared with $1.62 in 3Q25, while Adjusted loss per share was ($0.70), compared with Adjusted EPS of $3.24. GAAP pretax results were $216 million versus $134 million, but Adjusted pretax results were ($104) million versus $527 million. The gap between GAAP and Adjusted performance reflects, among other items, ($358) million of put/call valuation adjustments associated with the company's non-consolidating minority interest investments in 3Q26.
Consolidated GAAP revenues were $41,155 million in 3Q26, compared with $32,649 million in 3Q25. The consolidated GAAP operating cost ratio was 11.3 %, compared with 12.6 %, and the Adjusted operating cost ratio was 11.2 %, compared with 11.8 %. The 3Q26 Insurance segment GAAP benefit ratio was 93.7 percent, which the company characterized as favorable to its guidance of slightly above 94 percent.
Insurance segment profitability was weak in the quarter despite lower operating cost ratios. The segment reported a GAAP loss from operations of ($303) million and an Adjusted loss from operations of ($299) million, compared with GAAP income from operations of $251 million and Adjusted income from operations of $270 million in 3Q25. For YTD 2026, Insurance segment GAAP income from operations was $1,952 million, compared with $2,591 million in YTD 2025, while Adjusted income from operations was $1,964 million compared with $2,619 million.
Management highlighted strategic expansion in CenterWell and Medicaid. CenterWell Senior Primary Care added 146,800 patients YTD, or 30 percent, and Medicaid membership increased 103,600 YTD, or 7 percent, largely due to integrated Duals program starts in Michigan, Illinois, and South Carolina. The announced BlackRock joint venture replaced previous joint ventures with Welsh, Carson, Anderson & Stowe. The company also disclosed a noncash reversal of a net put liability of approximately $1.2 billion at September 30, 2026 and expects a new initial option liability to be recorded in the fourth quarter.
Humana raised FY 2026 Adjusted EPS guidance to at least $9.50 from at least $9.00 and revised GAAP EPS guidance to at least $15.09 from at least $6.52. The company said its Adjusted guidance anticipates a year-over-year decline because of the Star Ratings headwind for Bonus Year 2026, net of mitigation. The FY 2026 guide excludes future value changes that have not yet been recognized and cannot currently be reasonably estimated; the company expects potential changes to GAAP EPS guidance from value creation and other strategic initiatives.
Management, verbatim
Humana is delivering positive results for our members, our patients and their health. We are also increasingly driving financial and operating performance toward being 'ahead' of our plan.
Jim Rechtin, President and CEO
Not in the filing
stated, not guessed- Segment revenue for the Insurance segment was not included in the provided filing text.
- Segment revenue for the CenterWell segment was not included in the provided filing text.
- Gross margin was not reported.
- Consolidated operating income was not reported.
- Net income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents were not reported.
- Debt was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Revenue, gross margin, operating expense, and tax-rate guidance were not reported.
- A previous outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Prior-quarter comparisons were not reported for the disclosed metrics.
- A prior-year figure for the 3Q26 Insurance segment GAAP benefit ratio was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Humana filed a Form 8‑K reporting Q3 2026 results and raising its full‑year EPS guidance.
Ticker impact
Humana raised its FY 2026 Adjusted EPS guidance to at least $9.50 and GAAP EPS guidance to at least $15.09.
likely upward pressure as investors price in higher earnings expectations
The company issued guidance that exceeds prior expectations, indicating stronger profitability and may attract buying interest.
Market effects
Higher guidance may lift the health‑care services sector and peers focused on Medicare Advantage.
Positive for U.S. insurers and related Medicaid providers.
Limited to U.S. markets; no direct global impact.
Counterpoint
If the guidance upgrade is already priced in, the stock could face a short‑term pullback.
Key entities
- companyHumana Inc.
U.S. health insurance provider (NYSE:HUM).
