Humana beats Q2 estimates as revenue, adjusted EPS, Medicare membership, and CenterWell growth improve.
Stock Earnings Results
July 29, 2026
Table of Contents
July 29, 2026
Humana Inc. (NYSE: HUM) reported second-quarter 2026 results above expectations, supported by higher revenue, stronger adjusted EPS, Medicare membership growth, CenterWell expansion, improved operating cost ratio, and reaffirmed full-year adjusted EPS guidance.
Humana is a U.S. healthcare company focused on health insurance and care delivery through its Humana insurance business and CenterWell healthcare services platform, serving Medicare, Medicaid, families, individuals, military service members, and communities.
The company reported adjusted EPS of $7.61, above estimates of $6.22, representing a 22.3% earnings surprise. Revenue came in at $40.87 billion, above estimates of $40.65 billion, with revenue growth of 26.2%.
Revenue increased to $40.87 billion from $32.39 billion in the prior-year quarter.
Adjusted revenue was $40.89 billion.
GAAP EPS increased to $5.73 from $4.51.
Adjusted EPS increased to $7.61 from $6.27.
Pretax results increased to $952 million from $741 million.
Adjusted pretax results increased to $1.25 billion from $1.02 billion.
Humana said revenue growth was mainly driven by membership growth across its Medicare businesses.
Revenue also benefited from higher per-member Medicare Advantage and stand-alone prescription drug plan premiums.
Those higher premiums were driven largely by increased Medicare Advantage benchmark funding from CMS and higher Part D direct subsidies tied to the Inflation Reduction Act.
The company said these benefits were partly offset by the previously disclosed 2026 Star Ratings headwind and the final year of the v28 risk model revision phase-in.
Humana’s consolidated benefit ratio increased to 91.1% from 89.7% a year earlier.
The Insurance segment benefit ratio was 91.2%, in line with management’s guidance of slightly above 91%.
The increase reflected the 2026 Star Ratings revenue headwind, new Medicare Advantage members running at a higher benefit ratio than retained members, and lower favorable prior-period medical claims reserve development.
Those pressures were partly offset by 2026 Medicare Advantage pricing, clinical excellence efforts, and group Medicare Advantage recontracting.
The consolidated operating cost ratio improved to 9.8% from 11.0%.
The adjusted operating cost ratio improved to 9.7% from 10.9%.
Humana said the improvement came from operating leverage tied to higher Medicare revenue, improved benchmark funding, higher Part D direct subsidies, cost-cutting, transformation initiatives, and prior value creation initiatives.
Those benefits were partly offset by the Star Ratings headwind and higher value creation charges.
Insurance segment revenue increased to $39.14 billion from $31.09 billion.
Insurance segment income from operations increased to $820 million from $766 million.
Adjusted Insurance segment income from operations increased to $824 million from $770 million.
The segment benefited from Medicare membership growth and higher premiums, while Star Ratings pressure and higher benefit ratio remained key headwinds.
CenterWell segment revenue increased to $6.79 billion from $5.54 billion.
CenterWell income from operations increased to $466 million from $344 million.
Adjusted CenterWell income from operations increased to $514 million from $404 million.
Humana said CenterWell benefited from growth across its pharmacy, primary care, and home solutions businesses, supported by higher Medicare membership and expansion of its payor-agnostic client base.
CenterWell Senior Primary Care patients increased by 130,900 year-to-date, or 27%.
Humana continued to expand its Medicaid footprint.
The company was awarded a statewide Illinois Medicaid managed care contract expected to go live in January 2027.
Humana said it was the only new entrant awarded the contract, alongside five incumbents.
This adds another growth area outside the core Medicare Advantage business.
Humana reaffirmed full-year 2026 adjusted EPS guidance of at least $9.00.
The company revised full-year GAAP EPS guidance to at least $6.52 from the prior estimate of at least $8.36.
Humana also reaffirmed individual Medicare Advantage membership growth of approximately 25% over 2025.
The company expects full-year consolidated revenue of at least $160 billion.
Insurance segment revenue is expected to be at least $155 billion, while CenterWell segment revenue is expected to be at least $25 billion.
Operating cash flow is expected to range from $2.5 billion to $2.9 billion.
Humana delivered a stronger-than-expected quarter, but the report still showed pressure beneath the headline beat.
Revenue rose sharply, adjusted EPS beat expectations, Medicare membership grew, CenterWell expanded, and operating cost ratio improved. The company also reaffirmed adjusted EPS guidance and continued to expect strong Medicare Advantage membership growth.
The key issue is the higher benefit ratio and the ongoing Star Ratings headwind, which continue to pressure the health insurer’s economics.
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