Humana Raises 2026 Earnings Outlook After Third-Quarter Revenue Jumps 26%

Humana Inc. (NYSE:HUM) reported better-than-expected third-quarter 2026 earnings and revenue, prompting the health insurer to raise its full-year profit guidance. However, shares declined 0.8% following the announcement.

The company posted an adjusted loss of $0.70 per share, narrower than the $1.00 loss anticipated by analysts. Revenue increased 26% year over year to $41.16 billion, compared with $32.65 billion a year earlier, exceeding the consensus forecast of $40.87 billion.

Humana’s insurance segment reported a GAAP benefit ratio of 93.7%, better than management’s previous expectation of slightly above 94%, indicating that medical benefit costs were lower relative to premiums than anticipated.

Humana Increases Full-Year Earnings Guidance

Following the stronger quarterly performance, Humana raised its adjusted earnings guidance for fiscal 2026 to at least $9.50 per share, up from its previous forecast of at least $9.00. The revised outlook exceeds analysts’ consensus estimate of $9.16.

The company also increased its GAAP earnings guidance to at least $15.09 per share from at least $6.52. Third-quarter GAAP earnings were $1.33 per share.

Chief Executive Officer Jim Rechtin highlighted improvements in the company’s operational and financial performance.

“Humana is delivering positive outcomes for our members, patients and their health. We are also making increasing progress in our financial and operational performance, moving ahead of our original plans,” Rechtin said.

CenterWell and Medicaid Membership Continue Expanding

Humana reported continued growth across its healthcare services and insurance operations.

CenterWell Senior Primary Care added 146,800 patients year to date, representing a 30% increase, reflecting the company’s ongoing expansion in primary care services for older adults.

Medicaid membership also increased by 103,600 members, or 7%, during the same period.

The growth was largely supported by the introduction of integrated Duals programmes in Michigan, Illinois and South Carolina, serving individuals eligible for both Medicare and Medicaid.

These developments contributed to Humana’s broader strategy of expanding healthcare services alongside its insurance operations.

Analysts Had Anticipated Higher Earnings Guidance

Ahead of the results, Raymond James analyst Parker Snure noted that investors were already expecting Humana to increase its full-year earnings forecast.

“It is widely anticipated that Humana will raise its guidance with its third-quarter results, meaning that an outlook broadly in line with expectations and left unchanged, similar to the first two quarters, would likely disappoint Wall Street,” Snure said.

The comments suggested that expectations for an upward revision were already reflected in market sentiment before the announcement.

Despite Humana exceeding quarterly forecasts and raising its annual earnings outlook, shares slipped 0.8%, indicating a relatively subdued investor response.

The company’s performance nevertheless demonstrated stronger revenue growth, favourable medical cost trends and continued expansion in its healthcare services and Medicaid businesses.

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