Anticipating Humana’s Upcoming Quarterly Earnings Report

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Humana Inc., a leading health insurance and managed care company headquartered in Louisville, Kentucky, offers various medical and specialty insurance products, such as Medicare Advantage plans, Medicaid, commercial fully-insured health benefits, pharmacy services, and care delivery. With a market capitalization of approximately $32.9 billion, Humana is one of the largest health insurers in the United States.

The company is set to release its fiscal Q4 earnings for 2025 on Feb. 11. Analysts predict that Humana will report a loss of $4.01 per share, representing an 85.7% decrease from $2.16 per share in the previous year’s quarter. While Humana has exceeded Wall Street’s earnings projections in three out of the last four quarters, it fell short once. Projections for fiscal 2025 anticipate a profit of $17.08 per share, a 5.4% increase from the previous year, but a 28.9% decline in EPS to $12.14 is expected for fiscal 2026.

Humana’s performance over the past 52 weeks has been less favorable compared to the S&P 500 Index and the State Street SPDR S&P Health Care Services ETF, as its shares have seen a marginal decline during this period. This drop can be attributed to challenges within the company’s Medicare Advantage business. Mainly, a notable reduction in the quality ratings (Star Ratings) of several major MA plans has affected Humana’s performance. Furthermore, higher-than-projected medical costs have put pressure on profit margins.

During Q3 2025, Humana’s revenues surged by 11.1% year-over-year to $32.7 billion, but profits weakened due to increased medical utilization, driving the adjusted benefit ratio up to 91.1%. Non-GAAP EPS decreased by 22.1% year-over-year to $3.24. The company continues to face pressure in its Medicare Advantage segment, expecting a loss of 425K members in 2025. Humana reiterated its 2025 benefit ratio and adjusted EPS forecast of $17 but revised down its GAAP EPS outlook to $12.26.

Market analysts hold a moderately positive outlook on Humana, with an overall rating of “Moderate Buy.” Out of 27 analysts covering the stock, seven recommend “Strong Buy,” two suggest “Moderate Buy,” 16 advise “Hold,” and two propose a “Strong Sell” rating. The average price target of $286.50 indicates a potential upside of 4.8%. The information in this article is for informational purposes only and does not reflect the positions held by Subhasree Kar.