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Humana Inc (HUM)
NYSE:HUM
US Market
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EarningsQ2 2026 Earnings Report

Humana (HUM) Q2 2026 Earnings Report

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HUM Q2 2026 EPS Results

Actual EPS$7.61
Consensus EPS$7.27
Beat/MissBeat by +$0.34
One Year Ago EPS$6.27

HUM Q2 2026 Revenue Results

Actual Revenue$40.87B
Expected Revenue$40.58B
Beat/MissBeat by +$286.85M
YoY Revenue Growth+26.18%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
HUM Upcoming Earnings
Humana's next earnings date is estimated for November 6, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

HUM Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a generally constructive operational and strategic progress narrative: clear cost-reduction execution (120 bps Y/Y improvement in Q2 operating cost ratio and expected ~150 bps full-year), tangible improvement in key Stars-related measures (outperforming historical CAGR on most selected metrics and ~5% better quality improvement rate for BY '29 measures), balance-sheet moves (Gentiva divestiture ~ $900M and $1.5B P-Cap facilities) and a new statewide Medicaid win. However, material risks remain — notably elevated and rising drug trend, dependence on membership mix for margin realization, plan-exit disruption (~600k members), elevated reserves/IBNR, and Stars/ policy uncertainty — which temper the outlook. On balance, the highlights (execution, cost savings, Stars operational progress, capital actions) outweigh the lowlights (policy uncertainty, drug trend, membership disruption), producing a cautiously positive sentiment.
Company Guidance
Humana guided that 2026 cost trends are expected to be high single‑digit (7–8% all‑in, with drug trend in the double digits and expected to tick modestly higher in 2027), Q2 consolidated operating cost ratio improved 120 basis points year‑over‑year (with a full‑year reduction of ~150 bps expected), and the company remains on track to double individual MA pretax margin in 2026 (excluding the Stars headwind) and to reach a sustainable pretax margin of at least 3% in 2028 with meaningful margin progress expected in 2027; bids incorporate contingency (submitted ~6 months ahead) and assume trends in line with 2026, plan exits are expected to affect ~600,000 members (with recapture similar to 2025 at just over 40% and many exits in plans with ≤3.5 ratings), BY‑28 Stars operational progress outpaced historical CAGR on 11 of 12 selected HEDIS/patient‑safety measures and top‑quartile Stars is defined as Stars revenue PMPM 10% above the peer median, BY‑29 quality improvement remains ~5% ahead year‑over‑year on a per‑member basis, IBNR was flat sequentially after earlier year‑over‑year increases, Humana established $1.5 billion of contingent P‑Cap facilities and announced a ~$900 million Gentiva minority‑interest divestiture expected to close in Q4, and the company won a statewide Illinois Medicaid contract going live January 2027 as the only new entrant among six carriers.
On-Track to 2028 Margin Goal
Management reiterated they are tracking to expectations for 2026 and expect 2027 MA bids to drive progress toward a sustainable pretax margin of at least 3% in 2028; they expect meaningful margin expansion in 2027 though final results will depend on membership size and composition.
Operational Cost Reduction
Consolidated operating cost ratio declined 120 basis points year-over-year in Q2 and the company continues to expect a full-year reduction of approximately 150 basis points, with operating model changes already yielding 'hundreds of millions' of value in 2026.
Material Stars Program Improvement
BY '28 operational performance showed improvement outpacing historical CAGR on 11 of 12 selected HEDIS and patient-safety measures; for BY '29 the company remained ~5% ahead of last year's quality improvement rate on a per-member basis in key HEDIS metrics at the end of Q2.
Membership Growth and New Member Engagement
Management reported 2026 membership trajectory is on track; new members are engaging at levels in line with or above renewing members, supporting retention and potential margin uplift in year-2 of enrollment.
Favorable Inpatient Trends Observed
Based on ~4 months of claims data, favorability was concentrated in inpatient care with both lower admits per 1,000 and lower unit costs versus expectations, supporting the company's 2026 trend assumptions.
Balance Sheet & Capital Actions
Announced divestiture agreement for minority interest in Gentiva valued at approximately $900 million (expected to close in Q4) and established $1.5 billion in contingent capital facilities (pre-capitalized trusts) to enhance liquidity and capital efficiency.
Medicaid Platform Expansion
Awarded a statewide Illinois Medicaid managed care contract (live Jan 2027); Humana was the only new entrant among six awardees, expanding Medicaid footprint.
Part D and Value-Based Care Performance
Part D underwriting and member behavior are in line to slightly better than expectations year-to-date; value-based care arrangements are performing slightly better than fee-for-service, helping to moderate trend.
Operational Simplification & Outsourcing
Actions include centralizing utilization management (11 markets into one team), expanding outsourcing in finance and HR, integrating CarePlus operations in Florida, and transforming vendor relationships to strategic partnerships to improve consistency and reduce G&A.
Plan-Exit Strategy with Recapture Experience
Planned plan exits for 2027 are expected to impact ~600,000 members, with management targeting to recapture a significant portion (noting they recaptured just over 40% in 2025), while prioritizing retention of higher-performing, value-based plans.

HUM Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 06, 2026
2026 (Q3)
-0.95 / -
3.24
2026 (Q2)
7.27 / 7.61
6.2721.37% (+1.34)
2026 (Q1)
10.24 / 10.31
11.58-10.97% (-1.27)
2025 (Q4)
-4.00 / -3.96
-2.16-83.33% (-1.80)
2025 (Q3)
2.93 / 3.24
4.16-22.12% (-0.92)
2025 (Q2)
5.92 / 6.27
6.96-9.91% (-0.69)
2025 (Q1)
10.07 / 11.58
7.2360.17% (+4.35)
2024 (Q4)
-2.23 / -2.16
-0.11-1863.64% (-2.05)
2024 (Q3)
3.42 / 4.16
7.78-46.53% (-3.62)
2024 (Q2)
5.86 / 6.96
8.94-22.15% (-1.98)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed