Humana Cuts FY26 EPS View, Backs Adj. Earnings Forecast After Weak Q1 Profit; Stock Drops

(RTTNews) - Health insurer Humana, Inc., while reporting weak first-quarter profit despite revenue growth, on Wednesday trimmed fiscal 2026 reported earnings view, but maintained adjusted earnings and revenue forecast.

In pre-market activity, the shares were losing around 4.5 percent, trading at $219.50, after closing Tuesday's regular trading 2.7 percent higher.

For fiscal 2026, the company now expects earnings per share to be 'at least $8.36', lower than the previous estimate of 'at least $8.89'. In fiscal 2025, earnings per share were $9.84.

Further, the company continues to expect adjusted earnings per share to be at least $9.00, compared to $17.14 a year ago. The anticipated year-over-year decline in adjusted earnings per share reflects the Star Ratings headwind for Bonus Year 2026, net of mitigation.

Consolidated revenues are still expected to be at least $160 billion, with insurance segment revenues at least $155 billion. The company continues to expect CenterWell segment revenues to be at least $25 billion.

Individual Medicare Advantage membership growth for the year is still expected to be approximately 25 percent 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 firm affirmed annual Insurance segment benefit ratio guidance of 92.75 percent, plus or minus 25 basis points.

In the first quarter, net income attributable to Humana declined to $1.19 billion or $9.83 per share from last year's $1.24 billion or $10.30 per share.

Adjusted earnings were $10.31 per share for the period, compared to $11.58 per share a year ago..

Pretax profit was $1.60 billion, higher than $1.69 billion last year. Adjusted pretax profit was $1.67 billion, compared to $1.89 billion last year,.

The company's revenue for the period rose 23.5 percent to $39.65 billion from $32.11 billion last year.

Humana's Insurance Segment revenues grew to $38.06 billion from $30.95 billion a year earlier, driven by membership growth across the company's Medicare businesses in 2026.

Premiums increased to $37.71 billion from last year's $30.51 billion. Services revenues also increased from last year.

Further, the firm confirmed that George Renaudin, Insurance Segment President, will retire effective June 29. Aaron Martin, currently President of Medicare Advantage, will begin leading the day-to-day management of the Insurance Segment, and will formally assume the role of Insurance Segment President following the retirement.

Renaudin will serve as a strategic advisor to the company through at least the end of 2026.

The company also confirmed that John Barger will begin leading Medicare Advantage operations effective immediately and will formally assume the role of President of Medicare Advantage upon Renaudin's retirement.

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