CORRECTED-Humana beats Q2 adjusted EPS estimates, affirms FY adjusted EPS guidance

Corrects benefit ratio entry in Key Details table

Overview

• U.S. health insurer's Q2 adjusted EPS beat analyst expectations

• Q2 revenue rose to $40.9 bln from $32.4 bln a year earlier

• Company affirms full-year adjusted EPS guidance, revises down GAAP EPS outlook

Outlook

• Humana affirms FY 2026 adjusted EPS guidance of at least $9.00

• Company revises FY 2026 GAAP EPS guidance to at least $6.52 from at least $8.36

• Humana expects FY 2026 Medicare Advantage membership growth of about 25% over 2025

Result Drivers

• CENTERWELL AND MEDICAID EXPANSION - Co cited continued expansion of CenterWell and Medicaid businesses, including 27% growth in CenterWell Senior Primary Care patients and new Illinois Medicaid contract

• BENEFIT RATIO MANAGEMENT - Insurance segment benefit ratio of 91.2% was in line with management's guidance, indicating medical cost management met expectations

Company press release: ID:nBw4nFlXRa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 18 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy."

• Wall Street's median 12-month price target for Humana Inc is $344.00, about 11.5% below its July 28 closing price of $388.71

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 28 - Trump administration to end Medicare premium subsidy program

• July 28 - Centene flags weakening Medicaid membership, shares fall

• July 27 - Universal Health Services cuts 2026 forecast on Medicaid reimbursement uncertainty

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)