Humana Inc. (NYSE:HUM) shares fell nearly 9% in pre-market trading on Wednesday despite the health insurer reporting second-quarter earnings and revenue that exceeded Wall Street expectations while reaffirming its full-year adjusted earnings guidance.
The company posted adjusted earnings of $7.61 per share, surpassing analysts’ consensus estimate of $7.23. Revenue for the quarter increased to $40.89 billion, ahead of the expected $40.56 billion.
Company Reaffirms Adjusted Earnings Guidance
Humana maintained its full-year 2026 adjusted earnings per share guidance of at least $9.00, slightly above analysts’ consensus forecast of $8.96.
However, the company lowered its GAAP earnings per share outlook to at least $6.52, compared with its previous guidance of at least $8.36, reflecting items excluded from its adjusted earnings forecast.
Medical Cost Trends Remain in Line with Expectations
The company’s Insurance segment reported a GAAP benefit ratio of 91.2% during the quarter, broadly in line with management’s expectation that the figure would be slightly above 91%.
Humana also reaffirmed its full-year Insurance segment benefit ratio guidance of 92.75%, plus or minus 25 basis points, signalling that medical cost trends remain consistent with its outlook.
President and Chief Executive Officer Jim Rechtin said: “The first half of the year went well, and we’re right where we said we’d be at Investor Day last year. When we get the clinical care right and run the business more efficiently, everything else follows—stronger earnings and better health and experiences for the people we serve.”
Medicare Advantage and Primary Care Continue to Expand
Humana reiterated its expectation for individual Medicare Advantage membership growth of approximately 25% compared with 2025.
The company said the increase continues to be driven by strong new member additions, improved customer retention and the success of its customer-focused benefits strategy and service enhancements.
CenterWell Senior Primary Care also continued to expand, with year-to-date patient growth of 130,900, representing an increase of 27%.
Illinois Medicaid Expansion Supports Future Growth
Humana also announced that it has secured a statewide Illinois Medicaid managed care contract, expanding its presence in the state’s Medicaid market.
The contract is expected to become effective in January 2027, with Humana being the only new provider selected alongside five incumbent insurers.
The award is expected to strengthen the company’s long-term growth opportunities within its government-sponsored healthcare business.
Humana stock price
