Humana (HUM) Q4 2025 earnings summary

Executive summary

• Delivered solid 2025 performance with adjusted EPS of $17.14, exceeding initial guidance despite higher investments to accelerate transformation.

• FY 2025 revenues grew to $129.7B, up from $117.8B in FY 2024, driven by higher Medicare and state-based contract premiums and membership growth.

• Achieved approximately 1 million new Medicare Advantage (MA) members, a 20% increase, with improved retention and favorable sales mix.

• Focus remains on consumer-centric strategy, sustainable margins, and unlocking earnings potential by 2028.

• Membership growth is expected to be enterprise accretive in 2026, driven by both insurance and CenterWell segments.

Financial highlights

• Adjusted EPS for 2025 was $17.14, above initial guidance of $16.25.

• FY 2025 revenues were $129.7B, up from $117.8B in FY 2024.

• 2026 adjusted EPS guidance is at least $9, reflecting a year-over-year decline due to a $3.5 billion Stars headwind.

• Premium growth from 2024 to 2026 expected at 40%, with statutory capital requirements rising less than 20%.

• FY 2025 operating cash flows were $921M, down from $2.97B in FY 2024, mainly due to timing impacts and working capital changes.

Outlook and guidance

• Anticipates 25% individual MA membership growth in 2026.

• Expects new members to be accretive to enterprise results in 2026.

• Initial 2026 guidance is more conservative than usual, reflecting dynamic market conditions and embedded cost trend assumptions.

• FY 2026 consolidated revenues projected at least $160B; Insurance segment at least $155B; CenterWell at least $25B.

• Doubling of individual MA pre-tax margin in 2026 expected when normalizing for Stars.