We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Increasing Operating Costs Affect Humana's Q1 Earnings?
Read MoreHide Full Article
Key Takeaways
Humana's Q1 earnings are expected to decline despite projected revenue growth of 22.8% y/y.
Humana's growth is driven by higher premiums; Medicare revenues are up 24% and CenterWell is up 13.2%.
Humana faces pressure as costs rise 21.8%, benefits ratio hits 89.5% and Insurance income is down 15.6%.
Humana Inc. (HUM - Free Report) is set to report first-quarter 2026 results on April 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $9.97 per share on revenues of $39.5 billion.
The consensus estimate for the first-quarter earnings has increased by 8 cents over the past 30 days. However, the bottom-line projection indicates a year-over-year decrease of 13.9%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 22.8%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.6 billion, implying a rise of 25.3% year over year. Also, the consensus mark for the current year’s EPS is pegged at $9.09, implying a decline of around 47% on a year-over-year basis.
HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 7%.
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Humana currently has an Earnings ESP of -5.02% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping HUM’s Q1 Results?
Humana's revenue growth in the first quarter is expected to have been supported by higher premiums. The Zacks Consensus Estimate for premiums indicates a 22.2% increase from the prior-year quarter’s reported figure, whereas our model predicts 19.8% growth. Similarly, the consensus mark for service revenues signals a 19.3% increase from a year ago.
The consensus mark for total Medicare revenues signals a 24% increase from a year ago. The Zacks Consensus Estimate for revenues from the CenterWell unit indicates 13.2% growth from a year ago. The Zacks Consensus Estimate for specialty membership is expected to witness nearly 1.6% growth in the quarter under review.
However, the Zacks Consensus Estimate for operating income from the Insurance unit predicts a 15.6% decrease from the year-ago level. Furthermore, the consensus estimate indicates that Humana’s investment income will see a 12.9% drop from the year-ago level.
We expect total operating costs to increase 21.8% in the first quarter, pushing the figure above $36.6 billion. This is likely to have led to a year-over-year decline in the bottom line. The consensus mark for the overall benefits expense ratio is pegged at 89.5% for the to-be-reported quarter, deteriorating from 87% a year ago.
Stocks That Warrant a Look
Here are some companies worth considering from the broader Medical space, as our model shows that these have the right combination of elements to beat on earnings this time:
The Zacks Consensus Estimate for Agenus’ bottom line for the to-be-reported quarter indicates 289.3% year-over-year growth. Agenus beat earnings estimates in two of the past four quarters and missed twice, with the average surprise being 31.4%. The consensus estimate for revenues is pegged at $129.5 million.
The Ensign Group, Inc. (ENSG - Free Report) presently has an Earnings ESP of +1.12% and a Zacks Rank #2.
The Zacks Consensus Estimate for Ensign Group’s bottom line for the to-be-reported quarter suggests 17.8% year-over-year growth. Ensign Group beat earnings estimates in each of the past four quarters, with the average surprise being 2.9%. The consensus estimate for revenues is pegged at $1.4 billion.
The Cigna Group (CI - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Cigna Group’s earnings for the to-be-reported quarter is pegged at $7.54 per share, suggesting 11.9% year-over-year growth. Cigna Group beat earnings estimates in each of the past four quarters, with the average surprise being 2.7%. The consensus estimate for revenues is pegged at $66.7 billion.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Will Increasing Operating Costs Affect Humana's Q1 Earnings?
Key Takeaways
Humana Inc. (HUM - Free Report) is set to report first-quarter 2026 results on April 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $9.97 per share on revenues of $39.5 billion.
The consensus estimate for the first-quarter earnings has increased by 8 cents over the past 30 days. However, the bottom-line projection indicates a year-over-year decrease of 13.9%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 22.8%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.6 billion, implying a rise of 25.3% year over year. Also, the consensus mark for the current year’s EPS is pegged at $9.09, implying a decline of around 47% on a year-over-year basis.
HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 7%.
Humana Inc. Price, Consensus and EPS Surprise
Humana Inc. price-consensus-eps-surprise-chart | Humana Inc. Quote
Q1 Earnings Whispers for HUM
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Humana currently has an Earnings ESP of -5.02% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping HUM’s Q1 Results?
Humana's revenue growth in the first quarter is expected to have been supported by higher premiums. The Zacks Consensus Estimate for premiums indicates a 22.2% increase from the prior-year quarter’s reported figure, whereas our model predicts 19.8% growth. Similarly, the consensus mark for service revenues signals a 19.3% increase from a year ago.
The consensus mark for total Medicare revenues signals a 24% increase from a year ago. The Zacks Consensus Estimate for revenues from the CenterWell unit indicates 13.2% growth from a year ago. The Zacks Consensus Estimate for specialty membership is expected to witness nearly 1.6% growth in the quarter under review.
However, the Zacks Consensus Estimate for operating income from the Insurance unit predicts a 15.6% decrease from the year-ago level. Furthermore, the consensus estimate indicates that Humana’s investment income will see a 12.9% drop from the year-ago level.
We expect total operating costs to increase 21.8% in the first quarter, pushing the figure above $36.6 billion. This is likely to have led to a year-over-year decline in the bottom line. The consensus mark for the overall benefits expense ratio is pegged at 89.5% for the to-be-reported quarter, deteriorating from 87% a year ago.
Stocks That Warrant a Look
Here are some companies worth considering from the broader Medical space, as our model shows that these have the right combination of elements to beat on earnings this time:
Agenus Inc. (AGEN - Free Report) has an Earnings ESP of +7.69% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Agenus’ bottom line for the to-be-reported quarter indicates 289.3% year-over-year growth. Agenus beat earnings estimates in two of the past four quarters and missed twice, with the average surprise being 31.4%. The consensus estimate for revenues is pegged at $129.5 million.
The Ensign Group, Inc. (ENSG - Free Report) presently has an Earnings ESP of +1.12% and a Zacks Rank #2.
The Zacks Consensus Estimate for Ensign Group’s bottom line for the to-be-reported quarter suggests 17.8% year-over-year growth. Ensign Group beat earnings estimates in each of the past four quarters, with the average surprise being 2.9%. The consensus estimate for revenues is pegged at $1.4 billion.
The Cigna Group (CI - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Cigna Group’s earnings for the to-be-reported quarter is pegged at $7.54 per share, suggesting 11.9% year-over-year growth. Cigna Group beat earnings estimates in each of the past four quarters, with the average surprise being 2.7%. The consensus estimate for revenues is pegged at $66.7 billion.