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Humana beats second-quarter profit estimates with $7.61 adjusted EPS

Humana beats second-quarter profit estimates with $7.61 adjusted EPS

The insurer topped quarterly estimates as revenue rose to about $40.9 billion and Medicare Advantage grew 20.7%, but it kept its 2026 adjusted profit outlook at at least $9 per share, disappointing some investors even as Evercore ISI upgraded the stock to Outperform.

Fact Check
Reuters and CNBC confirm the $7.61 adjusted EPS beat, ~$40.9B revenue, and the maintained 2026 adjusted profit outlook of at least $9/share that disappointed some investors. Yahoo/Zacks confirms the 20.7% membership growth figure and TipRanks confirms Evercore ISI's upgrade to Outperform. The only nuance is that the 20.7% figure refers to total medical membership growth rather than Medicare Advantage specifically (individual MA grew ~23%, expected ~25%), a minor labeling imprecision that does not undermine the substance of the claim.
Summary

Humana reported second-quarter results above Wall Street expectations, posting adjusted earnings of $7.61 per share and revenue of about $40.9 billion as medical spending tracked in line with the insurer's forecasts. Net income rose to $694 million, or $5.73 per share, from $545 million, or $4.51 per share, a year earlier. The company maintained its 2026 adjusted profit outlook of at least $9 per share rather than raising it, even as Medicare Advantage growth reached 20.7% and some peers have increased guidance, contributing to shares falling more than 4% in premarket trading. After the results, Evercore ISI upgraded Humana to Outperform. Humana's medical benefit ratio was 91.2%, matching analyst expectations and company forecasts but up from 89.9% a year earlier.

Terms & Concepts
  • Medicare Advantage: Privately run health plans that provide Medicare benefits, making enrollment growth, reimbursement and care-cost trends key drivers of insurer earnings.
  • medical benefit ratio: The percentage of premium revenue an insurer spends on medical care, with lower ratios generally indicating stronger profitability.
  • value-based providers: Healthcare providers paid based in part on patient outcomes and cost efficiency rather than only on the volume of services delivered.