Shares of Humana Inc. (NYSE:HUM) dropped 5.1% in premarket trading after the health insurer issued 2026 earnings guidance that came in well below Wall Street forecasts, overshadowing stronger-than-anticipated fourth-quarter results.
For the fourth quarter of 2025, the Medicare Advantage provider reported an adjusted net loss of $3.96 per share, slightly narrower than analysts’ expectations of a $4.00 per share loss. Revenue totaled $32.52 billion, surpassing the consensus estimate of $32.04 billion.
Investor reaction centered on the company’s 2026 adjusted earnings projection of “at least $9.00” per share, significantly under the $12.00 analysts had been expecting. Management said the anticipated year-over-year decline reflects a “Star Ratings headwind for Bonus Year 2026, net of mitigation.”
For full-year 2025, Humana posted adjusted earnings of $17.14 per share, up from $16.21 in 2024. Within its Insurance segment, the company recorded a GAAP benefit ratio of 90.4% for the year, slightly better than prior guidance of “the top end of the range of 90.1% to 90.5%.”
“We were pleased with our solid financial performance and operational progress in 2025,” said Humana President and CEO Jim Rechtin. “We continue to feel good about our consumer-focused strategy and our individual Medicare Advantage membership growth in 2026, which will allow us to build for the future with even better outcomes and experiences.”
Despite the softer earnings outlook, Humana expects individual Medicare Advantage membership to expand by roughly 25% in 2026, driven by new enrollments and improved retention rates. The company also pointed to ongoing momentum in its CenterWell healthcare services platform, which saw a 25% rise in Senior Primary Care patients during 2025.