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HUM raised its 2026 adjusted EPS view to at least $9.50, while projecting revenues of at least $160 billion.
Humana Inc. (HUM - Free Report) reported a third-quarter 2026 adjusted loss of 70 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.03. The bottom line deteriorated from adjusted earnings of $3.24 per share in the year-ago quarter.
Revenues, excluding investment income, climbed 26.4% year over year to $40.83 billion, beating the consensus mark by 0.9%.
The quarterly results benefited from Medicare membership growth, higher premiums and improved operating cost efficiency. However, a deteriorating benefit ratio and higher expenses partially offset the upside.
Humana's premiums increased 26% year over year to $38.7 billion. Services revenues advanced 32.8% to $2.1 billion. Net investment income declined 2.7% year over year to $329 million.
The consolidated benefit ratio deteriorated 280 basis points (bps) year over year to 93.9%, reflecting the adverse impact of Star Ratings, higher benefit costs associated with new Medicare Advantage members and lower favorable prior-period claims development.
Total operating expenses increased 27.4% year over year to $41.1 billion, led by higher benefits and operating costs. However, the adjusted operating cost ratio improved 60 bps year over year to 11.2%, supported by operating leverage and cost-cutting initiatives.
Humana's Q3 Segmental Update
Insurance
The segment's revenues rose 25.3% year over year to $39.1 billion, driven by higher Medicare membership and increased per-member premiums. Improved Medicare Advantage benchmark funding and higher Part D direct subsidies also contributed to revenue growth.
The segment recorded an adjusted operating loss of $299 million against adjusted operating income of $270 million in the prior-year quarter. The benefit ratio deteriorated 260 bps year over year to 93.7%. However, the adjusted operating cost ratio improved 130 bps to 7.7%.
CenterWell
The unit's revenues improved 21.7% year over year to $7.2 billion, supported by membership growth, primary care expansion and increased pharmacy volumes.
Adjusted operating income declined 18.7% year over year to $291 million. The operating cost ratio deteriorated 200 bps to 95.9%, reflecting higher primary care expenses, changes to the v28 Medicare risk-adjustment model and increased specialty pharmacy volumes.
HUM's Membership and Healthcare Services Update
Total medical membership reached 18 million as of Sept. 30, 2026, increasing 20.3% year over year. Individual Medicare Advantage membership advanced to 6.5 million, while group Medicare Advantage membership reached 728,300.
Individual Medicare stand-alone prescription drug plan membership was 4 million. Meanwhile, CenterWell Primary Care served approximately 637,900 patients, up 42.7% year over year, supported by acquisitions and expansion initiatives.
The primary care network expanded to 399 centers from 342 a year earlier. CenterWell Home Health's same-store admissions increased 5.5% year over year in the quarter, reflecting continued growth in home-based healthcare services.
Humana's Financial Update (As of Sept. 30, 2026)
Humana exited the third quarter with cash and cash equivalents of $6.9 billion, increasing 65.1% from the 2025-end level. Total assets rose 17.1% from the 2025-end figure to $57.3 billion.
Long-term debt declined 6.6% from the 2025-end level to $11.6 billion. The debt-to-capitalization ratio was 40.9%, improving 20 bps from the 2025-end level.
Total stockholders' equity increased 6.6% from the 2025-end figure to $18.8 billion. HUM generated operating cash flows of $5.4 billion in the first nine months of 2026, more than doubling year over year.
HUM's Capital Deployment Update
Humana repurchased shares worth $110 million in the first nine months of 2026. It also paid dividends totaling $320 million during the same period.
The company expects to complete the divestiture of its minority interest in Gentiva, valued at approximately $900 million, in the fourth quarter. Its recently completed CenterWell joint venture with BlackRock is expected to improve balance sheet efficiency and financial flexibility.
Humana's Updated 2026 Outlook
Management raised its adjusted earnings guidance to at least $9.50 per share from the previous projection of at least $9.00. The revised outlook still indicates a 44.6% decline from the 2025 reported figure. GAAP earnings guidance was raised to at least $15.09 per share from $6.52.
Revenues are still expected to reach at least $160 billion. Insurance and CenterWell segment revenues are still projected at a minimum of $155 billion and $25 billion, respectively.
Individual Medicare Advantage membership is expected to grow approximately 25% in 2026, while group Medicare Advantage membership is anticipated to increase by roughly 150,000 members.
The Insurance segment's benefit ratio is still projected at 92.75%, plus or minus 25 bps. Management continues to expect operating cash flows of $2.5-$2.9 billion and capital expenditures of approximately $650 million.
Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
HCA Healthcare reported third-quarter 2026 adjusted earnings per share of $7.22, which beat the Zacks Consensus Estimate of $6.74. The bottom line advanced 3.7% year over year. Revenues rose 3.6% year over year to $19.8 billion. The top line beat the Zacks Consensus Estimate of $19.4 billion. HCA’s quarterly results benefited from higher same-facility admissions and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
Elevance Health reported third-quarter 2026 adjusted earnings per share of $6.99, which surpassed the Zacks Consensus Estimate by 50%. However, the bottom line increased 15.9% year over year. Operating revenues advanced 0.7% year over year to $50.4 billion. The top line beat the consensus mark by 4%. ELV’s quarterly results benefited from higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. However, lower medical membership and elevated operating expenses partly offset the gains.
UnitedHealth Group reported third-quarter 2026 adjusted earnings per share of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. Revenues declined 0.4% year over year to $112.7 billion. The top line beat the consensus mark by 1.2%. UNH’s third-quarter results benefited from disciplined medical cost management, pricing discipline and improved operating efficiency. Higher earnings at UnitedHealthcare, Optum Insight and Optum Health supported the quarterly performance. However, declining Medicare Advantage and Medicaid membership, lower Optum Health revenues and reduced prescription volumes at Optum Rx remained concerns.
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HUM Q3 Earnings Beat Estimates on Strong Insurance Performance
Key Takeaways
Humana Inc. (HUM - Free Report) reported a third-quarter 2026 adjusted loss of 70 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.03. The bottom line deteriorated from adjusted earnings of $3.24 per share in the year-ago quarter.
Revenues, excluding investment income, climbed 26.4% year over year to $40.83 billion, beating the consensus mark by 0.9%.
The quarterly results benefited from Medicare membership growth, higher premiums and improved operating cost efficiency. However, a deteriorating benefit ratio and higher expenses partially offset the upside.
Humana Inc. Price, Consensus and EPS Surprise
Humana Inc. price-consensus-eps-surprise-chart | Humana Inc. Quote
HUM's Q3 Operational Update
Humana's premiums increased 26% year over year to $38.7 billion. Services revenues advanced 32.8% to $2.1 billion. Net investment income declined 2.7% year over year to $329 million.
The consolidated benefit ratio deteriorated 280 basis points (bps) year over year to 93.9%, reflecting the adverse impact of Star Ratings, higher benefit costs associated with new Medicare Advantage members and lower favorable prior-period claims development.
Total operating expenses increased 27.4% year over year to $41.1 billion, led by higher benefits and operating costs. However, the adjusted operating cost ratio improved 60 bps year over year to 11.2%, supported by operating leverage and cost-cutting initiatives.
Humana's Q3 Segmental Update
Insurance
The segment's revenues rose 25.3% year over year to $39.1 billion, driven by higher Medicare membership and increased per-member premiums. Improved Medicare Advantage benchmark funding and higher Part D direct subsidies also contributed to revenue growth.
The segment recorded an adjusted operating loss of $299 million against adjusted operating income of $270 million in the prior-year quarter. The benefit ratio deteriorated 260 bps year over year to 93.7%. However, the adjusted operating cost ratio improved 130 bps to 7.7%.
CenterWell
The unit's revenues improved 21.7% year over year to $7.2 billion, supported by membership growth, primary care expansion and increased pharmacy volumes.
Adjusted operating income declined 18.7% year over year to $291 million. The operating cost ratio deteriorated 200 bps to 95.9%, reflecting higher primary care expenses, changes to the v28 Medicare risk-adjustment model and increased specialty pharmacy volumes.
HUM's Membership and Healthcare Services Update
Total medical membership reached 18 million as of Sept. 30, 2026, increasing 20.3% year over year. Individual Medicare Advantage membership advanced to 6.5 million, while group Medicare Advantage membership reached 728,300.
Individual Medicare stand-alone prescription drug plan membership was 4 million. Meanwhile, CenterWell Primary Care served approximately 637,900 patients, up 42.7% year over year, supported by acquisitions and expansion initiatives.
The primary care network expanded to 399 centers from 342 a year earlier. CenterWell Home Health's same-store admissions increased 5.5% year over year in the quarter, reflecting continued growth in home-based healthcare services.
Humana's Financial Update (As of Sept. 30, 2026)
Humana exited the third quarter with cash and cash equivalents of $6.9 billion, increasing 65.1% from the 2025-end level. Total assets rose 17.1% from the 2025-end figure to $57.3 billion.
Long-term debt declined 6.6% from the 2025-end level to $11.6 billion. The debt-to-capitalization ratio was 40.9%, improving 20 bps from the 2025-end level.
Total stockholders' equity increased 6.6% from the 2025-end figure to $18.8 billion. HUM generated operating cash flows of $5.4 billion in the first nine months of 2026, more than doubling year over year.
HUM's Capital Deployment Update
Humana repurchased shares worth $110 million in the first nine months of 2026. It also paid dividends totaling $320 million during the same period.
The company expects to complete the divestiture of its minority interest in Gentiva, valued at approximately $900 million, in the fourth quarter. Its recently completed CenterWell joint venture with BlackRock is expected to improve balance sheet efficiency and financial flexibility.
Humana's Updated 2026 Outlook
Management raised its adjusted earnings guidance to at least $9.50 per share from the previous projection of at least $9.00. The revised outlook still indicates a 44.6% decline from the 2025 reported figure. GAAP earnings guidance was raised to at least $15.09 per share from $6.52.
Revenues are still expected to reach at least $160 billion. Insurance and CenterWell segment revenues are still projected at a minimum of $155 billion and $25 billion, respectively.
Individual Medicare Advantage membership is expected to grow approximately 25% in 2026, while group Medicare Advantage membership is anticipated to increase by roughly 150,000 members.
The Insurance segment's benefit ratio is still projected at 92.75%, plus or minus 25 bps. Management continues to expect operating cash flows of $2.5-$2.9 billion and capital expenditures of approximately $650 million.
HUM’s Zacks Rank
HUM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Medical Companies Perform?
Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
HCA Healthcare reported third-quarter 2026 adjusted earnings per share of $7.22, which beat the Zacks Consensus Estimate of $6.74. The bottom line advanced 3.7% year over year. Revenues rose 3.6% year over year to $19.8 billion. The top line beat the Zacks Consensus Estimate of $19.4 billion. HCA’s quarterly results benefited from higher same-facility admissions and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
Elevance Health reported third-quarter 2026 adjusted earnings per share of $6.99, which surpassed the Zacks Consensus Estimate by 50%. However, the bottom line increased 15.9% year over year. Operating revenues advanced 0.7% year over year to $50.4 billion. The top line beat the consensus mark by 4%. ELV’s quarterly results benefited from higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. However, lower medical membership and elevated operating expenses partly offset the gains.
UnitedHealth Group reported third-quarter 2026 adjusted earnings per share of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. Revenues declined 0.4% year over year to $112.7 billion. The top line beat the consensus mark by 1.2%. UNH’s third-quarter results benefited from disciplined medical cost management, pricing discipline and improved operating efficiency. Higher earnings at UnitedHealthcare, Optum Insight and Optum Health supported the quarterly performance. However, declining Medicare Advantage and Medicaid membership, lower Optum Health revenues and reduced prescription volumes at Optum Rx remained concerns.