Humana (NYSE: HUM) disclosed in its April 29, 2026 SEC 8-K filing that Q1 2026 adjusted EPS reached $10.31, meeting the top end of company guidance.
Q1 Results at a Glance
Humana's Q1 GAAP EPS was $9.83, a slight decline from $10.30 in the prior-year quarter. Adjusted EPS of $10.31 decreased from $11.58 year-over-year, primarily due to reduced government bonus income tied to lower Medicare Advantage star ratings. The insurance segment's GAAP medical loss ratio (MLR) of 89.4% came in below company guidance of below 90%, demonstrating operational discipline.
- Revenue: Not disclosed (excluded from SEC 8-K summary)
- EPS (GAAP): $9.83 vs. $10.30 prior year
- EPS (Adjusted): $10.31, meeting top-end of company guidance
- Pre-tax operating income (GAAP): $1.595 billion vs. $1.691 billion prior year
- Pre-tax operating income (Adjusted): $1.67 billion vs. $1.893 billion prior year
- Insurance segment MLR: 89.4% (within company guidance of below 90%)
Full-Year Outlook
Humana maintained its 2026 adjusted EPS guidance at a minimum of $9.00. However, the company lowered GAAP EPS guidance from a minimum of $8.89 to $8.36, reflecting the impact of lower Medicare Advantage star-driven bonuses. The company expects Medicare Advantage individual members to grow approximately 25% year-over-year. CEO Jim Rechtin stated, "We're off to a strong start this year. We're making meaningful progress on customer experience and healthcare quality."
Market Reaction
Bloomberg reported that Humana delivered earnings above market expectations. However, Fierce Healthcare and the Wall Street Journal noted that stock declined following the earnings announcement due to concerns over revenue headwinds from lower star ratings. The downward revision to GAAP guidance and concerns that Medicare reimbursement rates are not keeping pace with cost inflation pressured investor sentiment. Healthcare Dive reported that Humana has declared profitability recovery as its top priority.
Segment Performance Highlights
- Centerwell Senior Primary Care: Patient growth of 110,500 (22% increase) quarter-over-quarter, with approximately 59,000 patients and 54 centers from MaxHealth acquisition
- State Contracts: Membership increased approximately 50,000 in Q1, supported by launches in Michigan, Illinois, and South Carolina programs
- Centerwell Pharmacy: Developing employer-targeted prescription solutions in partnership with Cost Plus
- Insurance segment revenue: Not disclosed
This article was auto-generated based on the SEC 8-K filing and third-party reporting, with the aim of rapidly delivering core data following the announcement. Readers are encouraged to review the company's official SEC filings before making investment decisions.
