Humana reported second quarter 2026 revenue of $40.87 billion and adjusted EPS of $7.61, exceeding analyst expectations. The results were driven by significant membership growth in its Medicare businesses, though this was partially offset by higher medical costs.
Key Highlights
- The company's second quarter adjusted EPS came in at $7.61, significantly beating the consensus estimate of $6.22, driven by strong revenue growth and improved operating leverage.
- The Insurance segment Medical Benefit Ratio was 91.2%, which was higher than the 89.9% reported in the same quarter last year, indicating increased medical utilization costs.
- Management affirmed its full-year 2026 adjusted EPS guidance of 'at least $9.00' but lowered its GAAP EPS guidance to 'at least $6.52' from a previous estimate of 'at least $8.36'.
- Humana also reaffirmed its forecast for individual Medicare Advantage membership to grow by approximately 25 percent in fiscal 2026.