Humana

HUM Q1 2026 Earnings

Reported Apr 29, 2026 at 6:06 AM ET · SEC Source

Q1 26 EPS

$10.31

Q1 26 Revenue

$39.65B

BEAT +0.67%

Est. $39.39B

vs S&P Since Q1 26

+0.2%

BEATING MARKET

HUM +1.5% vs S&P +1.3%

Market Reaction

Did HUM Beat Earnings? Q1 2026 Results

Humana posted a clean beat to open 2026, with first-quarter adjusted EPS of $10.31 edging past the $10.20 consensus estimate by 1.05%, extending the managed-care giant's streak of beating EPS expectations to four consecutive quarters. Revenue climbed… Read more Humana posted a clean beat to open 2026, with first-quarter adjusted EPS of $10.31 edging past the $10.20 consensus estimate by 1.05%, extending the managed-care giant's streak of beating EPS expectations to four consecutive quarters. Revenue climbed 23.5% year over year to $39.65 billion, ahead of the $39.39 billion consensus by 0.67%, as a surge in Medicare Advantage enrollment, with individual MA membership up roughly 22% year-to-date, combined with higher per-member premiums from increased CMS benchmark funding to drive the topline expansion. The Insurance segment benefit ratio of 89.4% came in slightly favorable to management's guidance, with early cost trend data running a touch better than expected across both new and existing membership. Looking ahead, Humana affirmed its full-year 2026 adjusted EPS target of at least $9.00 and consolidated revenue guidance of at least $160.00 billion, while trimming its GAAP EPS outlook to at least $8.36 from $8.89, reflecting charges tied to value creation initiatives.

Key Takeaways

  • Individual MA membership growth of approximately 1,144,000 (22%) year-to-date driven by new sales and improved retention
  • Higher per-member MA and stand-alone PDP premiums from increased CMS benchmark funding and IRA Part D direct subsidy
  • Insurance segment benefit ratio of 89.4% slightly favorable to 'just under 90%' guidance
  • Adjusted consolidated operating cost ratio improved 50 bps YoY to 10.0% from operating leverage and cost-cutting initiatives
  • Insurance segment operating cost ratio improved 90 bps YoY to 7.3%
  • Medical and pharmacy cost trends slightly better than expectations across new and existing membership
  • CenterWell primary care patient growth of 110,500 sequentially (over 22%)
  • Prior period favorable medical claims reserve development of $389 million in Q1 2026 vs. $477 million in Q1 2025

HUM Forward Guidance & Outlook

Humana affirmed its FY 2026 Adjusted EPS guidance of 'at least $9.00' while revising GAAP EPS guidance to 'at least $8.36' from 'at least $8.89'. The company affirmed consolidated revenue guidance of 'at least $160 billion', Insurance segment revenue of 'at least $155 billion', and CenterWell segment revenue of 'at least $25 billion'. FY 2026 Insurance segment benefit ratio is guided at 92.75% +/- 25 bps, and consolidated operating cost ratio at 10.0% +/- 25 bps. Individual MA membership growth is expected at approximately 25%, group MA growth of approximately 150,000, stand-alone PDP growth of approximately 1 million, and state-based contracts growth of 25,000 to 100,000. Insurance segment income from operations is guided to approximately breakeven on a GAAP basis, while CenterWell segment income from operations is guided at $1.3B to $1.8B GAAP and $1.5B to $2.0B non-GAAP. Q2 2026 earnings are expected to be approximately 80% to 85% of full-year Adjusted earnings, with Q2 Insurance segment benefit ratio expected slightly above 91%. Cash flows from operations are guided at $2.5 billion to $2.9 billion and capital expenditures at approximately $650 million. The company continues to target delivering a stable and compelling MA margin and unlocking earnings potential by 2028 as outlined at the 2025 Investor Day.

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HUM YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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HUM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We've had a solid start to the year and feel good about how our operating execution and transformation initiatives are setting us up for the future.”

— Jim Rechtin, Q1 2026 Earnings Press Release