Humana (HUM) Q3 2025 earnings summary

Executive summary

• Delivered a solid third quarter with Adjusted EPS of $3.24, meeting expectations, and supported by stable revenue and medical cost trends.

• Net income attributable to shareholders was $195 million ($1.62 per diluted share) for Q3 2025, down from $480 million in Q3 2024; YTD net income was $2.0 billion ($16.43 per diluted share), up from $1.9 billion year-over-year.

• Full year 2025 Adjusted EPS outlook reaffirmed at approximately $17.00, with GAAP EPS guidance revised to $12.26.

• Membership retention and favorable product mix are driving growth, with CenterWell Primary Care and Pharmacy segments reporting strong patient and specialty volume increases.

• Results were impacted by put/call valuation adjustments, impairment charges, litigation settlements, and value creation initiative charges.

Financial highlights

• Q3 2025 revenue rose 11.1% year-over-year to $32.65 billion; YTD 2025 revenue reached $97.15 billion, up from $88.55 billion YTD 2024.

• Premiums revenue increased 9.9% year-over-year in Q3 2025 to $30.7 billion, driven by higher Medicare and state-based contract premiums and membership growth in certain segments.

• Services revenue grew 45.1% in Q3 2025 to $1.6 billion, mainly from primary care and pharmacy solutions.

• Operating costs rose 22.3% in Q3 2025 to $4.1 billion, reflecting business mix changes and charges for value creation initiatives.

• Benefit ratio increased to 91.1% in Q3 2025 from 89.9% in Q3 2024; operating cost ratio rose to 12.6% from 11.5%.

Outlook and guidance

• FY 2025 Adjusted EPS outlook reaffirmed at approximately $17.00; GAAP EPS guidance revised to $12.26.

• Insurance segment benefit ratio guidance for FY 2025 affirmed at 90.1% to 90.5%, with Q4 expected at approximately 93.5%.

• Individual Medicare Advantage membership decline for FY 2025 now expected at approximately 425,000, improved from prior guidance.

• Medicaid membership growth now anticipated at 160,000 for FY 2025.

• 2026 guidance will be provided with Q4 2025 results; expect to double individual MA pre-tax margin in 2026 (normalizing for Stars).