Humana Reports Q4 2025 Earnings with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy HUM?
Source: seekingalpha
- Earnings Highlights: Humana reported a Q4 2025 non-GAAP EPS of -$3.96, beating estimates by $0.03, with adjusted revenue of $32.64 billion reflecting an 11.7% year-over-year increase, surpassing expectations by $630 million, indicating strong revenue growth.
- Insurance Segment Performance: The GAAP benefit ratio for the insurance segment was 93.1% in Q4, and 90.4% for FY 2025, slightly better than the upper guidance of 90.5%, demonstrating effective cost control and operational efficiency improvements.
- Future Guidance: The company introduced FY 2026 GAAP EPS guidance of at least $8.89 and $9.00 on an adjusted basis, with anticipated individual Medicare Advantage membership growth of approximately 25% driven by new sales and enhanced customer retention strategies, despite headwinds from Star Ratings.
- Market Expansion: CenterWell Senior Primary Care added 100,600 patients in 2025, a growth of over 25%, while expanding its Medicaid footprint to 13 states, including Georgia and Texas expected to launch in 2027, showcasing the company's proactive market expansion strategy.
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Analyst Views on HUM
Wall Street analysts forecast HUM stock price to rise
19 Analyst Rating
6 Buy
12 Hold
1 Sell
Moderate Buy
Current: 178.830
Low
231.00
Averages
290.39
High
344.00
Current: 178.830
Low
231.00
Averages
290.39
High
344.00
About HUM
Humana Inc. provides Humana insurance services and CenterWell health care services. The Company's segments include Insurance and CenterWell. The Insurance segment consists of Medicare benefits, marketed to individuals or directly via group Medicare accounts, as well as its contract with CMS to administer the Limited Income Newly Eligible Transition (LI-NET) prescription drug plan program and contracts with various states to provide Medicaid, dual eligible demonstration, and Long-Term Support Services benefits. This segment also includes products consisting of employer group commercial fully-insured medical and specialty health insurance benefits marketed to individuals and employer groups. The CenterWell segment includes its pharmacy, primary care, and home solutions operations. The segment also includes its strategic partnerships with WCAS to develop and operate senior-focused, payor-agnostic, primary care centers, as well as its minority ownership interest in hospice operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Team Integration: MaxHealth's clinical team will join CenterWell, with both organizations sharing aligned values aimed at improving patient quality of life through simplified healthcare experiences, driving synergistic benefits.
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- Customer Base: MaxHealth operates 54 primary care clinics, four specialty/ancillary clinics, and 24 affiliate clinics in West and South Florida, with over 80,000 patients enrolled in value-based care programs, highlighting its significance in the healthcare service landscape.
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See More
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- Market Expansion: This acquisition allows CenterWell Senior Primary Care to enter new key markets, leveraging its personalized and integrated care approach to further enhance patient healthcare experiences and satisfaction.
- Team Integration: The MaxHealth team will join CenterWell, with both organizations sharing a strong alignment in patient-centered values, which is expected to drive higher quality healthcare services to meet the growing medical needs in Florida.
- Strategic Partnership: The transaction was supported by financial advisors Guggenheim Securities and Morgan Stanley, marking CenterWell's ongoing expansion in the healthcare services sector and its commitment to high-quality care.
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- Outlook Concerns: Despite solid financial performance in 2025, Humana's adjusted EPS guidance for fiscal 2026 is at least $9, significantly below Wall Street's estimate of $11.92, indicating a cautious outlook on future profitability.
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- Analyst Rating Changes: Analysts adjusted their ratings on Humana, with Cantor Fitzgerald lowering the price target from $290 to $201 while maintaining a Neutral rating, Guggenheim keeping a Buy rating but reducing the target from $312 to $252, and RBC Capital downgrading to Sector Perform with a target cut to $189, highlighting market divergence on the company's future performance.
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