Research · Sep 3, 2026
Humana FY25 revenue $129.7B (+10%); op income $1.45B (-11%); NI $1.19B; EPS $9.84. AEP +1M Medicare Advantage members (+20%); retention rate improved 500+bp. 70% of new sales switchers; 70% in 4 stars or better. Anticipate FY26 individual MA +25% growth. STARS net headwind ~$3.5B FY26 (net of mitigation). FY26 individual MA pretax margin doubles (normalized for STARS). Insurance benefit ratio 90.4%. Medicaid spans 13 states (Georgia + Texas launching 2026). Strategic primary care acquisition planned. FY26 guide: adj EPS at least $9; STARS top quartile recovery by 2028.
Research · Apr 30, 2026
Humana's Q1 2026 earnings filing shows strong operational execution—benefit ratio beat, cost ratios improved 50-90 bps, membership growth on track—but the tape focused on a GAAP EPS guidance cut from $8.89 to $8.36. The cut is driven by discrete items (Star Ratings accounting and MaxHealth integration costs), not operational deterioration. Adjusted EPS guidance of at least $9.00 was affirmed, and medical cost trends are tracking better than expected.
Research · Apr 9, 2026
The April 7, 2026, Medicare Advantage rate decision sparked gains for UNH and HUM, signaling margin relief for exposed insurers. UNH leads with balanced exposure and scale, followed by HUM's pure-play bet and CI's value. Rankings prioritize MA leverage, growth, and valuations amid stabilizing reimbursements.
