Humana falls despite beating second quarter estimates

Investing.com -- Humana Inc. (NYSE: HUM) reported second-quarter earnings before the open on Wednesday, topping consensus expectations.

Adjusted earnings per share of $7.61 beat the analyst estimate of $7.23 by $0.38, though shares fell 8.7% premarket following the results. Revenue for the quarter reached $40.89 billion, surpassing the consensus estimate of $40.56 billion.

The company affirmed its full-year 2026 adjusted EPS guidance of at least $9.00, slightly above the analyst consensus of $8.96. However, Humana revised its GAAP EPS guidance to at least $6.52 from the previous estimate of at least $8.36.

The Insurance segment GAAP benefit ratio came in at 91.2%, in line with management's guidance of slightly above 91%. The company maintained its full year 2026 Insurance segment benefit ratio guidance of 92.75%, plus or minus 25 basis points.

"The first half of the year went well, and we're right where we said we'd be at Investor Day last year," said Humana President and CEO Jim Rechtin. "When we get the clinical care right and run the business more efficiently, everything else follows—stronger earnings and better health and experiences for the people we serve."

Humana affirmed its individual Medicare Advantage membership growth of approximately 25% over 2025, driven by new sales and improved retention from the company's customer-led benefit strategy and changes to its customer service approach. The company reported year-to-date growth of 130,900 patients, or 27%, in CenterWell Senior Primary Care.

The company also announced it broadened its Illinois Medicaid footprint with the award of a statewide Illinois Medicaid managed care contract expected to go live in January 2027. Humana was the only new entrant awarded along with five incumbents.

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