Humana Q2 Profit Climbs, Cuts FY26 EPS Outlook, Backs Adj. Earnings, Revenue View; Stock Down
(RTTNews) - Health insurer Humana, Inc., while reporting higher second-quarter profit with strong revenue growth, on Wednesday trimmed fiscal 2026 reported earnings view, but maintained adjusted earnings and revenue outlook.
In pre-market activity, the shares were losing around 8.87 percent, trading at $354.38, after closing Tuesday's regular trading 2 percent higher.
For fiscal 2026, the company now expects earnings per share to be at least $6.52, lower than the previous estimate of 'at least $8.36'. In fiscal 2025, earnings per share were $9.84.
Further, Humana 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.
The company still expects consolidated revenues for the year to be at least $160 billion, with insurance segment revenues at least $155 billion, and CenterWell segment revenues to be at least $25 billion.
Further, Individual Medicare Advantage membership growth for the year is still expected to be approximately 25 percent over 2025.
The firm affirmed annual Insurance segment benefit ratio guidance of 92.75 percent, plus or minus 25 basis points.
In the second quarter, Humana's net earnings totaled $694 million, or $5.73 per share, compared to $545 million or $4.51 per share last year.
Adjusted earnings were $1.248 billion or $7.61 per share for the period, compared to $6.27 per share a year ago.
The company's revenue for the period rose 26.2 percent to $40.867 billion from $32.388 billion last year.
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