Humana's Fiscal 2026 Outlook and Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy HUM?
Source: Benzinga
- 2026 Earnings Forecast: Humana anticipates adjusted earnings per share of at least $9 for fiscal 2026, significantly lower than Wall Street's estimate of $11.92, indicating a decline from $9.84 in 2025 due to headwinds from Star Ratings, which suggests profitability challenges ahead.
- Insurance Segment Ratios: The company expects a benefit ratio of 92.75% for its insurance segment in 2026, with an operating cost ratio of 10%, reflecting ongoing efforts to manage costs that may impact overall profitability.
- Membership Growth Expectations: Humana projects a 25% growth in individual Medicare Advantage membership for 2026, driven by new sales and improved customer service strategies, despite a decline in total medical membership from 16.34 million to 14.99 million, highlighting intense market competition.
- Sales and Market Performance: The company forecasts sales of at least $160 billion for 2026, exceeding the consensus of $145.31 billion, although its stock price fell by 4.22% to $173.65 at publication, indicating investor concerns about future profitability.
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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: 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.
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