Humana Inc. (NYSE:HUM) reported first-quarter results on Wednesday that exceeded earnings expectations, but its shares dropped 5.1% following the release.
Adjusted earnings per share came in at $10.31, ahead of the analyst consensus of $10.20. The result landed at the upper end of the company’s guidance range, representing roughly 110% to 115% of its full-year 2026 adjusted EPS outlook.
Humana reaffirmed its full-year 2026 adjusted EPS guidance of at least $9.00, which remains above the analyst consensus of $8.71. However, the midpoint of the outlook implies a year-over-year decline, reflecting pressure from Star Ratings for the 2026 bonus year. The company also lowered its GAAP EPS guidance to at least $8.36, down from its previous estimate of at least $8.89.
Within its Insurance segment, the GAAP benefit ratio came in at 89.4%, slightly better than management’s expectation of just under 90%. The company maintained its full-year 2026 guidance for the Insurance segment benefit ratio at 92.75%, plus or minus 25 basis points. It also reaffirmed expected growth of approximately 25% in individual Medicare Advantage membership compared with 2025, supported by new customer additions and improved retention.
“We’ve had a solid start to the year and feel good about how our operating execution and transformation initiatives are setting us up for the future,” said Jim Rechtin. “We continue to make progress where it counts for customers – quality experience and outstanding care.”
The company reported sequential growth of 110,500 patients, or more than 22%, in its CenterWell Senior Primary Care business, including around 59,000 patients and 54 centers added through the recent acquisition of MaxHealth.
Membership in state-based contracts increased by about 50,000 during the quarter, driven by new program launches in Michigan, Illinois, and South Carolina.
Humana also announced that George Renaudin, President of the Insurance segment, will retire effective June 29, 2026, with Aaron Martin set to take over the role.