Humana (HUM) Q4 2025 earnings summary

Executive summary

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

• Achieved approximately 1 million new Medicare Advantage (MA) members, a 20% increase, with improved retention and favorable sales mix; CenterWell Senior Primary Care patients grew by over 100,600, including 32,000 from The Villages Health acquisition.

• 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.

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

• Confident in operational capacity and capital levels to support growth and strategic initiatives.

Financial highlights

• FY 2025 adjusted EPS was $17.14, above initial guidance of ~$16.25; FY 2025 GAAP EPS was $9.84.

• FY 2025 revenues were $129.7B, up from $117.8B in FY 2024; 4Q25 revenues were $32.5B.

• Insurance segment FY 2025 benefit ratio was 90.4%, slightly better than guidance.

• FY 2026 adjusted EPS guidance is at least $9, reflecting a year-over-year decline due to a $3.5 billion Stars headwind; GAAP EPS guidance is at least $8.89.

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

Outlook and guidance

• Anticipates 25% individual MA membership growth in 2026, with ~1 million new members from AEP and group MA up 150,000.

• 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.

• Doubling of individual MA pre-tax margin in 2026 expected when normalizing for Stars; group MA margins expected to improve significantly due to re-contracting.

• Medicaid and CenterWell segments expected to drive increased earnings as they mature.