Humana (HUM) investor relations material

Executive summary

• Year-to-date and Q2 2026 performance are tracking to expectations, with strong membership growth and operational progress supporting long-term goals.

• Net income attributable to shareholders was $694 million ($5.73 per diluted share) for Q2 2026, up from $545 million ($4.51 per diluted share) in Q2 2025; YTD 2026 GAAP EPS was $15.55 and Adjusted EPS was $17.91, both up year-over-year.

• Consolidated revenues rose to $40.9B in Q2 2026 (up 26.2% year-over-year), driven by Medicare membership growth and higher premiums.

• Stars program improvements and value-based care are driving quality metrics above historical trends.

• Virtual investor update scheduled for December 10, 2026, to provide further insights into progress and future outlook.

Financial highlights

• Premiums revenue increased 26.4% year-over-year to $38.83 billion for Q2 2026; consolidated operating cost ratio decreased by 120 basis points year-over-year in Q2, with a full-year reduction of approximately 150 basis points expected.

• 2Q26 Adjusted EPS was $7.61, representing 80–85% of FY earnings guidance.

• Operating cash flows YTD 2026 were $3.22B, up from $1.60B YTD 2025.

• Medical and pharmacy cost trends remain in line with high single-digit expectations, with some favorability in inpatient costs.

• Cash and cash equivalents increased to $6.9 billion at June 30, 2026, from $4.2 billion at year-end 2025.

Outlook and guidance

• Affirmed FY 2026 Adjusted EPS outlook of at least $9.00; GAAP EPS guidance revised down to at least $6.52 due to Star Ratings headwinds.

• Margin expansion in 2027 will be driven by clinical excellence, operating efficiency, benefit adjustments, and targeted plan exits.

• Individual Medicare Advantage membership expected to grow ~25% over 2025; group MA up 150,000; stand-alone PDP up 1,000,000.

• Plan exits in 2027 are expected to impact about 600,000 members, with efforts to recapture a significant portion.

• Drug cost trends are expected to tick modestly higher in 2027 due to the health technology pipeline.