Humana gains ground on Medicare Advantage recovery with higher 2026 guidance
Humana delivered a better-than-expected third quarter on insurance claims performance, lifting its 2026 adjusted EPS guidance despite reporting an adjusted loss for the period. The company also flagged stronger CenterWell growth and a lower-cost BlackRock joint venture as part of its path towards a 3% pretax margin by 2028.
- 2026 adjusted EPS guidance raised to at least US$9.50
- Third-quarter GAAP EPS of US$1.33 versus an adjusted loss of US$0.70
- Insurance benefit ratio of 93.7%, ahead of guidance
- CenterWell primary-care patients up 30% year to date
- BlackRock joint venture expected to reduce leverage and funding costs
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Humana Inc. (NYSE:HUM) lifted its 2026 earnings targets after its insurance business produced a 93.7% benefit ratio in the third quarter, better than management’s expectation of slightly above 94%. The improvement gave the health insurer room to raise adjusted diluted EPS guidance to at least US$9.50 from US$9.00, while its GAAP target rose sharply to at least US$15.09 from US$6.52.
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Bottom Line?
The immediate earnings signal is favourable, but the harder test will be whether Humana can sustain claims performance while rebuilding Medicare Advantage margins through 2028.
Questions in the middle?
- Can Humana maintain medical and pharmacy cost trends at or below its high-single-digit expectations as its membership base expands?
- Will the 2027 Medicare Advantage bids deliver the promised improvement towards a sustainable 3% pretax margin in 2028?
- How much of the expected balance-sheet benefit from the BlackRock joint venture will flow through to earnings and capital allocation?
Sources
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Results of Operations and Financial Condition; Regulation FD Disclosure (opens in a new tab)Official market announcement. SEC filing · Humana Inc. · 6 Nov 2026 · sec.gov
