Humana Inc. Reports Mixed Results for Q2 2025 with $6.27 Adj. EPS

Humana Inc. (NYSE: HUM) has released its financial results for the second quarter of 2025, revealing performance metrics that closely align with expectations, while also providing updated guidance for the full year.

Humana Inc. Reports Adj. EPS of $6.27 for Q2, Slightly Missing Forecasts

In the second quarter of 2025, Humana Inc. reported an adjusted earnings per share (EPS) of $6.27, which fell slightly short of the anticipated EPS of $6.32. On a GAAP basis, the EPS was $4.51. The company’s revenue for the quarter reached $32.39 billion, surpassing the expected $31.77 billion.

This increase in revenue was primarily driven by higher premiums per member from Medicare and state-based contracts, as well as membership growth in state-based contracts and stand-alone PDP businesses. However, these gains were partially offset by a decline in individual Medicare Advantage membership due to the company’s strategic exit from unprofitable plans and counties.

The insurance segment benefit ratio for the quarter was reported at 89.9%, aligning with Humana’s previous expectations of approximately 90%. This ratio reflects the cost of benefits provided to members as a percentage of premiums collected. The operating cost ratio for the quarter was 11.0%, slightly higher than the previous year’s 10.8%, primarily due to business mix changes and the impact of the loss of individual Medicare Advantage membership.

Despite these challenges, Humana’s CEO, Jim Rechtin, expressed confidence in the company’s performance, highlighting the strategic investments in improved outcomes, operational excellence, and customer experience. The company’s strategic focus on value creation initiatives and operational efficiencies contributed to maintaining a stable financial performance despite the slight shortfall in EPS compared to expectations.

Join our Telegram group and never miss a breaking digital asset story.

Humana Revises Full-Year 2025 Guidance, Lowers GAAP EPS Expectations

Looking ahead, Humana has revised its full-year 2025 guidance, adjusting its expectations to reflect current market conditions and strategic initiatives. The company has lowered its GAAP EPS guidance to approximately $13.77, down from the previous estimate of $14.68.

However, Humana has raised its adjusted EPS guidance to approximately $17.00, up from the prior guidance of $16.25. This adjustment reflects the company’s confidence in its ongoing value creation initiatives and operational efficiencies.

Humana has also updated its revenue guidance for the full year, projecting consolidated revenues of at least $128 billion, an increase from the previous guidance range of $126 billion to $128 billion. This revision is driven by anticipated growth in the CenterWell segment, which includes pharmacy, primary care, and home solutions. CenterWell Pharmacy recently won access to 17 new limited distribution drugs and received the MMIT Patient Choice award for the seventh time in eight years.

Additionally, Humana has revised its individual Medicare Advantage membership guidance, now anticipating a decline of up to 500,000 members, an improvement from the previous guidance of a decline of approximately 550,000 members.

This adjustment reflects the impact of exiting unprofitable plans and counties, as well as the company’s pricing strategy aimed at driving sustainable, long-term value creation. Humana remains confident in its strategic initiatives and is focused on expanding its footprint in the CenterWell and Medicaid markets, which are expected to contribute to future growth and profitability.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.