HUMANA INC (HUM) Earnings History

HUMANA INC - Q1 2026 EarningsBeat

Filed at: Apr 29, 2026, 6:06 AM EDT|Read from source

EXECUTIVE SUMMARY

Humana reported a solid start to 2026 with strong first-quarter results, driven by effective operational execution and strategic transformation initiatives. The company affirmed its full-year adjusted financial guidance, demonstrating confidence in its ongoing strategy despite some year-over-year declines in GAAP metrics.

POSITIVE HIGHLIGHTS

  • •

    Adjusted EPS of $10.31, at the high end of guidance and reflecting strong operational execution.

    positive
  • •

    Insurance segment GAAP benefit ratio of 89.4 percent, slightly favorable to management's guidance.

    positive
  • •

    Affirmed full year 2026 Adjusted EPS guidance of 'at least $9.00'.

    positive
  • •

    Affirmed FY 2026 individual Medicare Advantage (MA) membership growth of 'approximately 25 percent'.

    positive
  • •

    Sequential growth of 110,500 patients in CenterWell Senior Primary Care, including acquisition of MaxHealth.

    positive
  • •

    1Q26 state-based contracts membership growth of approximately 50,000.

    positive

CONCERNS & RISKS

  • •

    GAAP EPS revised downwards to 'at least $8.36' from 'at least $8.89'.

    negative
  • •

    FY 2026 Adjusted EPS guidance anticipates a year-over-year decline due to Star Ratings headwind.

    negative
  • •

    Decline in Star Ratings will negatively impact 2026 quality bonus payments from CMS and may adversely affect revenues, operating results, and cash flows.

    negative
  • •

    Year-over-year decline in GAAP pretax results ($1,595M vs $1,691M) and Adjusted pretax results ($1,670M vs $1,893M).

    negative
  • •

    Year-over-year decline in GAAP EPS ($9.83 vs $10.30) and Adjusted EPS ($10.31 vs $11.58).

    negative
  • •

    Insurance Segment GAAP income from operations decreased to $1,435M from $1,574M YoY.

    negative

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Net Income
Quarterly
N/A
N/A
EPS (Diluted)
Quarterly
$9.83
-4.6%
Prior year: $10.30
Operating Income
Quarterly
$1.59B
-5.7%
Prior year: $1.69B
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
10.2%
Prior Year
10.6%
YoY Change
-40 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Insurance Segment
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Insurance Segment
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

GAAP EPS
"at least"
Adjusted EPS
"at least"
Insurance segment benefit ratio
92.5—93
Mid-point: 92.75
"plus or minus 25 basis points"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-29
Tone
N/A
Hedge density
N/A
Deflection rate
N/A

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Amortization associated with identifiable intangibles
Excluded from Adjusted EPS
+$11M
$0.09 per share
Q1 2026
Put/call valuation adjustments associated with company's non-consolidating minority interest investments
Excluded from Adjusted EPS
$34M
$0.28 per share
Q1 2026
Value creation initiatives
Excluded from Adjusted EPS
+$98M
$0.81 per share
Q1 2026
Tax impact of non-GAAP adjustments
Excluded from Adjusted EPS
$140M
$0.14 per share
Q1 2025
Amortization associated with identifiable intangibles
Excluded from Adjusted EPS
+$15M
$0.12 per share
Q1 2025
Put/call valuation adjustments associated with company's non-consolidating minority interest investments
Excluded from Adjusted EPS
+$163M
$1.35 per share
Q1 2025
Value creation initiatives
Excluded from Adjusted EPS
+$24M
$0.20 per share
Q1 2025
Tax impact of non-GAAP adjustments
Excluded from Adjusted EPS
$390M
$0.39 per share
Total Impact
$253M$1.76 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Solid start to the year and feel good about how operating execution and transformation initiatives are setting us up for the future.

— HUMANA INC, Q1 2026 2026 Earnings Call

Continue to make progress where it counts for customers - quality experience and outstanding care.

— HUMANA INC, Q1 2026 2026 Earnings Call

Affirms Adjusted FY 2026 GAAP EPS guidance of 'at least $9.00'.

— HUMANA INC, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Operating cost ratio
10
Prior year: 10.5
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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