NEW YORK, July 29, 2026, 08:05 EDT — U.S. premarket
- Shares of Humana dropped roughly 8% after the health insurer maintained its adjusted EPS outlook at “at least” $9. Reuters
- Adjusted EPS for the first half reached $17.91, amounting to 199% of the company’s annual guidance minimum.
- Quarterly profit and revenue exceeded projections. Medical expenses stayed nearly in line with estimates.
Shares of Humana Inc. NYSE:HUM dropped approximately 8% ahead of Wednesday’s market open. The health insurer maintained its adjusted EPS floor for 2026 at $9.
The announcement eclipsed an otherwise solid quarterly performance. Anticipation had increased following better-than-expected outcomes from other managed care providers.
The main concern centers on the earnings bridge. Humana reported $17.91 in adjusted EPS for the first half.
This represents 199% of the yearly minimum. When set at $9, initial calculations indicate an $8.91 adjusted loss for the second half.
The discrepancy is highlighted by the reported numbers and LSEG benchmarks.
| Investor check | 2026 figure | Reference point |
|---|---|---|
| Q2 adjusted EPS | $7.61 | $6.27 in the previous year; $7.22 LSEG |
| Q2 revenue | $40.87 billion | $32.39 billion a year ago; $40.61 billion LSEG |
| First-half adjusted EPS | $17.91 | 199% of the annual minimum |
| Full-year adjusted EPS floor | At least $9.00 | 47.5% lower than the 2025 amount of $17.14 |
| Second-half floor case, preliminary | −$8.91 | Calculated; not official outlook |
| Q3 adjusted EPS outlook | About −$1.00 | Official company forecast |
| Q4 floor case, preliminary | About −$7.91 | Calculated; not official outlook |
The floor-case numbers represent initial estimates rather than forecasts from management. Annual results exceeding $9 would reduce the implied losses.
The company forecasts an adjusted loss per share of about $1 for the third quarter. Management noted that second-quarter results accounted for 80% to 85% of the year’s adjusted earnings.
The quarter delivered strong results. Adjusted earnings per share increased by 21% to $7.61, surpassing the LSEG estimate of $7.22. Revenue rose 26.2% to $40.87 billion, topping the $40.61 billion analysts expected.
Medical costs remained in line with expectations. The Insurance benefit ratio reached 91.2%, closely aligning with LSEG’s 91.19% forecast. That figure increased from 89.9% in the same period last year.
Humana largely countered the impact through reduced overhead expenses. The Insurance operating-cost ratio dropped by 120 basis points to 7.1%.
There were three primary factors driving the year-on-year rise in costs. According to Humana, these were Star-rating pressure, the composition of new members, and less favorable reserve development.
Management reported that medical and pharmacy trends continued in the high single-digit range. Inpatient costs were modestly better, particularly for members with value-based providers.
Enrollment continued to climb rapidly. Individual Medicare Advantage membership rose by 1.204 million, or 23%, as of June. Humana continues to project about 25% growth for the year.
Chief Executive Jim Rechtin stated the first half “went well.” He also noted that Humana was “right where we said we’d be.” SEC
Investors were looking for a larger boost. UnitedHealth Group Inc. NYSE:UNH lifted its 2026 adjusted EPS forecast to $19.50-$20 earlier this month. Morningstar analyst Julie Utterback noted that Humana shareholders were hoping for “a significant increase in expectations.” Reuters
Humana lowered its minimum GAAP EPS guidance to $6.52, down from $8.36. The company continues to aim for a sustainable pretax margin of no less than 3% by 2028.
Concentration of risks continues. Humana projects its Insurance benefit ratio will top 94% in the third quarter. Pressure on star-rating bonuses is ongoing. After 2026, CMS plans to discontinue its standalone Part D premium-stabilization demonstration. Humana’s Part D membership has increased 50% so far this year.
Upcoming tests are imminent. Investors are set to track third-quarter utilization, review the finalized Medicare plan landscape for September, and monitor Humana’s investor update scheduled for December 10.
