Humana Inc. (NYSE: HUM) shares fell more than 2% intra-day on Wednesday after the health insurer issued 2026 earnings guidance that significantly trailed analyst expectations, despite reporting better-than-expected fourth-quarter results.
The Medicare Advantage-focused insurer posted an adjusted net loss of $3.96 per share for the fourth quarter of 2025, slightly better than analyst expectations of a $4.00 loss per share. Revenue totaled $32.52 billion, exceeding the $32.04 billion consensus estimate.
However, investors reacted negatively to Humana’s 2026 adjusted earnings guidance of at least $9.00 per share, well below analyst projections of $12.00. The company attributed the anticipated year-over-year decline primarily to a Star Ratings headwind for Bonus Year 2026, net of mitigation efforts.
For full-year 2025, Humana reported adjusted earnings of $17.14 per share, up from $16.21 in 2024. The Insurance segment recorded a GAAP benefit ratio of 90.4% for fiscal 2025, slightly better than guidance at the top end of the 90.1% to 90.5% range.
Despite the softer earnings outlook, Humana projected approximately 25% growth in individual Medicare Advantage membership in 2026, driven by new enrollments and improved retention. The company also highlighted continued expansion of its CenterWell platform, which saw a 25% increase in Senior Primary Care patients during 2025.
