Humana Reports Q3 Earnings Beat, Maintains Full-Year EPS Forecast

Humana Inc. (NYSE: HUM) has released its financial results for the third quarter of 2025, showcasing a strong performance that exceeded market expectations. The company has also provided guidance for the remainder of the fiscal year, affirming its strategic initiatives and future outlook.

Q3 Results Reflect Effective Cost Management and Core Business Strength

In the third quarter of 2025, Humana Inc. reported an adjusted earnings per share (EPS) of $3.24, significantly surpassing the market expectation of $2.91. This performance highlights the company’s effective operational strategies and robust financial health. On a Generally Accepted Accounting Principles (GAAP) basis, the EPS was reported at $1.62, reflecting various adjustments made during the quarter. These adjustments included amortization, valuation changes, and strategic initiatives aimed at enhancing overall value.

Humana’s revenue for the quarter stood at $32.649 billion, exceeding the expected $32.0 billion. This increase in revenue is attributed to strong sales and retention in its Medicare Advantage plans, as well as growth in the CenterWell segment. The insurance segment benefit ratio was reported at 91.1%, aligning with the company’s prior guidance of slightly above 91%. This consistency indicates effective management of costs and pricing strategies.

Comparing the third quarter of 2025 to the same period in 2024, Humana’s pretax income showed a decline, with $134 million reported this quarter versus $651 million in the previous year. Despite this drop, the adjusted non-GAAP pretax income was $527 million, down from $679 million a year ago. This decline is primarily due to strategic exits and adjustments related to non-core business operations, including the exit from the employer group commercial medical products business.

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Full-Year EPS Maintained as Humana Eyes Growth in Core Segments

Looking ahead, Humana has updated its full-year 2025 GAAP EPS guidance to approximately $12.26, down from the previous estimate of $13.77. However, the company has maintained its adjusted EPS guidance at approximately $17.00. This affirmation of adjusted guidance reflects confidence in the company’s core operations and strategic initiatives, despite the downward revision in GAAP expectations.

The company anticipates a decline in individual Medicare Advantage membership by approximately 425,000 members, an improvement from the earlier forecast of a decline of up to 500,000 members. This adjustment is driven by stronger retention rates and better-than-expected sales, indicating effective customer engagement and satisfaction strategies.

Humana is also preparing for the launch of new programs, including the Michigan Highly Integrated Dual Eligible Special Needs Plan and the statewide Illinois Fully Integrated Dual Eligible Special Needs Plan, set to commence on January 1, 2026. These initiatives, along with the growth in CenterWell Primary Care and Pharmacy services, are expected to bolster the company’s long-term growth strategy. Humana’s proactive approach in expanding its Medicaid business and integrating new services underscores its commitment to enhancing value for its members and stakeholders.

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.