Humana earnings q2 2026 beat estimates as profit outlook holds
Humana beat second-quarter estimates and kept its 2026 profit forecast as medical costs tracked expectations.
By Daniel Okafor · Business Editor
3 min read
Humana earnings q2 2026 came in ahead of Wall Street expectations, and the health insurer kept its full-year profit forecast as medical costs stayed within its plans. The update matters for investors because Medicare Advantage insurers have spent more than two years dealing with higher care use and drug costs.
Humana said Wednesday that it still expects 2026 adjusted earnings of at least $9 per share. CNBC reported that the company’s shares fell more than 4% in premarket trading, even after the quarterly beat.
The company reported adjusted earnings of $7.61 per share for the second quarter, above the $7.22 expected by analysts surveyed by LSEG. Revenue was $40.87 billion, also above the $40.61 billion expected by LSEG analysts.
Humana posted net income of $694 million, or $5.73 per share, compared with $545 million, or $4.51 per share, in the same quarter a year earlier. Revenue rose from $32.39 billion a year ago.
Why did Humana earnings beat estimates?
Humana Chief Financial Officer Celeste Mellet told CNBC that the quarter was helped by performance in the company’s insurance business and its CenterWell health services unit. StreetAccount data cited by CNBC showed both units exceeded analysts’ sales estimates.
Mellet said Humana’s medical and pharmacy cost trends matched the company’s expectations for both new and existing members. She also said inpatient medical costs were slightly favorable, especially among members treated by value-based care providers, according to CNBC.
Humana is one of the largest providers of Medicare Advantage plans, which are privately run Medicare plans serving people 65 and older as well as people with disabilities. Insurers in that market have faced pressure from patients using care they had delayed after the pandemic and from expensive specialty medicines, including GLP-1 drugs, CNBC reported.
What is Humana’s medical benefit ratio?
A medical benefit ratio measures how much an insurer pays for medical claims compared with the premiums it collects. A lower ratio generally means the insurer kept more premium revenue after paying benefits, which can support profit.
Humana’s medical benefit ratio was 91.2% in the second quarter, in line with analyst expectations, according to CNBC. That was above the 89.9% ratio reported in the same period last year.
Mellet told CNBC the ratio was consistent with Humana’s internal expectations across new and current members. She said medical cost trends have become more stable, while the company is watching whether inpatient admissions continue to decline this year.
Pharmacy costs remain under pressure, Mellet said, citing drug prices and new product launches. She told CNBC those costs are expected to be slightly higher next year than in 2026, and described the issue as a broader drug-cost problem rather than a demand issue from members.
Why did investors react cautiously?
Cantor Fitzgerald analysts said in a Wednesday note that Humana’s unchanged profit outlook could disappoint investors after other Medicare Advantage insurers recently beat expectations and raised guidance. CNBC reported that investors have raised expectations for the sector as some insurers show better control of rising medical costs.
Mellet said Humana expects changes to its 2027 Medicare Advantage plans to improve profitability and keep the company on track for a sustainable pretax margin of at least 3% by 2028. She also said Humana remains confident it can lift earnings by adding members, improving plan quality ratings, keeping pricing discipline and controlling costs.
This story draws on original reporting from CNBC.