Humana raises 2026 guidance as third-quarter revenue rises 26% to $41.2bn

Humana reported GAAP revenue of $41.16bn for the third quarter of 2026, compared with $32.65bn a year earlier, in its results release filed with the US Securities and Exchange Commission on 6 November. GAAP earnings fell to $1.33 a share from $1.62. On an adjusted basis the company lost $0.70 a share, compared with adjusted earnings of $3.24 a share in the third quarter of 2025.

The Insurance segment's GAAP benefit ratio was 93.7%, which Humana said was better than its guidance of "slightly above 94 percent". The company raised its 2026 adjusted EPS guidance to at least $9.50 from at least $9.00, and its GAAP EPS guidance to at least $15.09 from at least $6.52.

Humana said its CenterWell Senior Primary Care business added 146,800 patients in the year to date, a 30% increase. Its Medicaid membership grew by 103,600, or 7%, mainly through integrated programmes for people who qualify for both Medicare and Medicaid in Michigan, Illinois and South Carolina.

In prepared remarks, management said it was proud of its Medicare Advantage Star Ratings for bonus year 2028 and set out the aim of returning to a sustainable pre-tax margin of at least 3% in 2028. On the earnings call, executives said 93% of members will be in plans rated four stars or higher in 2027, up from 41% in 2026, Healthcare Dive reported.

Humana now expects Medicare Advantage membership to grow again in 2027, after earlier expecting flat or lower membership, but chief executive Jim Rechtin said it was too early to say by how much, according to Healthcare Dive. About 600,000 members, 8% of its 7.2 million Medicare Advantage members, were affected by plan exits for 2027.