Financial Data and Key Metrics Changes - The company delivered a solid third quarter in line with expectations, maintaining a full year 2025 EPS outlook of approximately $17 [5][17] - Medical cost trends continued to align with expectations, supporting the reaffirmation of the adjusted EPS outlook [17] - The company experienced favorable conditions that allowed for higher-than-anticipated investments, totaling approximately $150 million in incremental investments [17] Business Line Data and Key Metrics Changes - The Medicare product and experience focus is on maximizing customer lifetime value and retention, with new sales at the high end of anticipated outcomes [9][10] - There was a significant reduction in plan-to-plan sales year over year, indicating a potential decrease in voluntary attrition [10] - The company is seeing improved channel mix and product mix, with higher-than-expected sales in plans rated four stars and above [10] Market Data and Key Metrics Changes - The company is not seeing outsized sales in areas where competitors have exited plans, indicating a stable market environment [10] - The overall growth strategy is focused on customer retention and experience, rather than solely on new sales targets [9][28] Company Strategy and Development Direction - The company is committed to achieving a Medicare Advantage pretax margin of at least 3% over time, with a focus on clinical excellence and operational efficiency [5][6] - Capital allocation strategies include selling non-core assets and investing in growth opportunities, such as The Villages Health in Florida [14][20] - The company is transitioning towards a consumer healthcare model, emphasizing customer experience and retention [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pricing strategy and the outlook for AEP 2026, despite disappointing STARS results for bonus year 27 [16][20] - The company is optimistic about returning to top quartile STARS results by bonus year 2028, with ongoing operational improvements [12][16] - Management highlighted the importance of balancing short-term and long-term value creation, focusing on sustainable growth [62][64] Other Important Information - The company is actively pursuing M&A opportunities in the current market dislocation, targeting small to mid-sized provider businesses [20] - The debt-to-cap ratio at the end of the quarter was 40.3%, with a long-term target of approximately 40% [20] Q&A Session Summary Question: Membership growth projections and operational capacity - Management emphasized a focus on lifetime value and retention, stating that growth is an outcome of these efforts, and they are dynamically managing new member growth [24][28] Question: Update on diversification strategy and H5216 - The company is working to deconsolidate H5216, aiming for a balanced portfolio of contracts to mitigate risk [33][35] Question: Membership growth expectations and MA individual membership - Management refrained from providing specific numbers but indicated that they are monitoring multiple factors affecting membership growth [39][40] Question: STARS recovery efforts and performance measures - Management reported strong progress across various metrics, including HEDIS and patient safety, and expressed optimism about future performance [49][50] Question: Margin characteristics and long-term targets - The company is prioritizing duals in Medicaid for their higher margins and is optimistic about growth opportunities in this segment [94][95]

Core Insights - Humana reported Q3 earnings with a revenue increase of 11% year-over-year to $32.65 billion, surpassing analyst expectations of $32 billion [1] - Adjusted earnings per share were $3.24, exceeding the forecast of $2.82 [1] - The medical cost ratio was 91.1%, aligning with company guidance and slightly above the analyst expectation of 90.9% [1] - The company reaffirmed its full-year adjusted earnings per share guidance of approximately $17 [1]

Core Insights - The outlook for Medicaid membership growth has been significantly reduced due to ongoing issues with medical costs [1] Group 1: Medicaid Membership Growth - The anticipated growth in Medicaid membership has been slashed, indicating a potential slowdown in enrollment [1] - Medical costs continue to pose challenges, impacting the overall financial health of the Medicaid program [1]

Core Insights - Humana reported quarterly earnings of $3.24 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, but down from $4.16 per share a year ago, indicating an earnings surprise of +11.34% [1] - The company achieved revenues of $32.65 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.09% and up from $29.3 billion year-over-year [2] - Humana has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of Humana's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is -$3.70 on revenues of $31.77 billion, while for the current fiscal year, it is $17.05 on revenues of $128.21 billion [7] Industry Context - The Medical - HMOs industry, to which Humana belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting that the overall industry outlook may negatively impact Humana's stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Core Insights - Humana reported a net income of $195 million for the third quarter, with medical cost trends aligning with previous forecasts [2][5] - The company is reaffirming its full year 2025 adjusted earnings per share outlook of approximately $17.00, supported by solid execution and results [6] Financial Performance - Humana's net income decreased to $195 million, or $1.62 per share, compared to $480 million, or $3.98 per share in the same quarter last year [5] - Revenue increased to $32.6 billion, up from $29.4 billion in the year-ago period [5] - The insurance segment benefit ratio was reported at 91.1%, consistent with guidance of just above 91% and an increase from 89.9% in the previous year [4] Medicare Advantage Plans - The company has been experiencing higher costs in its Medicare Advantage plans, which are a significant part of its business [3] - Humana's Medicare Advantage enrollment reached over 5.2 million individuals, with a projected decline of approximately 425,000 members for FY 2025, an improvement from earlier expectations [7] Growth in Healthcare Services - Humana's CenterWell healthcare services business reported growth of 56,600 patients, or nearly 15% [8] - CenterWell Pharmacy is driving strong growth across payor agnostic offerings, with increased specialty volumes and strong direct-to-consumer growth [8] Strategic Outlook - The company is confident in its strategy of prioritizing consumer needs, with solid year-to-date performance and strong momentum heading into the Annual Election Period [9][10]

Core Insights - Humana reported third-quarter profit exceeding Wall Street estimates, driven by higher premiums and medical costs aligned with expectations [1][4] - The health insurance industry has faced high costs due to increased healthcare service usage in government-backed plans [2] Company Performance - Humana anticipates a decline of approximately 425,000 members in its individual Medicare Advantage plans, an improvement from the previously expected loss of up to 500,000 members, attributed to stronger member retention and better sales [3] - The company expects most new members to enroll in higher-rated plans for 2026 [4] - Humana's quarterly medical cost ratio was 91.1%, consistent with its expectations of "just above 91%" and slightly above analysts' expectations of 90.90% [4] - The company reaffirmed its annual adjusted profit forecast of about $17 per share [4] - Adjusted quarterly profit was reported at $3.24 per share, surpassing estimates of $2.82 per share [5]

Humana reported lower third-quarter profit and slashed full-year earnings guidance as medical costs continue to surge, dragging down margins for the company's core Medicare Advantage business. ...

n e w s r e l e a s e Exhibit 99.2 Humana Inc. 500 West Main Street P.O. Box 1438 Louisville, KY 40202 http://www.humana.com FOR MORE INFORMATION CONTACT: Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail: LStamper@humana.com Mark Taylor Humana Corporate Communications (317) 753-0345 e-mail: MTaylor108@humana.com Humana Reports Third Quarter 2025 Financial Results; Affirms Full Year 2025 Adjusted EPS Guidance LOUISVILLE, KY (November 5, 2025) – Humana Inc. (NYSE: HUM) today reported consolidated p ...

LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today reported consolidated pretax results and diluted earnings per share (EPS) for the quarter ended September 30, 2025 (3Q25) versus the quarter ended September 30, 2024 (3Q24) and for the nine months ended September 30, 2025 (YTD 2025) versus the nine months ended September 30, 2024 (YTD 2024) as noted in the tables below. Consolidated income before income taxes and equity in net losses (pretax results) in millions 3Q25 (a) 3Q24 (a) Y. ...

Earnings Results - Humana Inc. is set to release its third-quarter earnings results on November 5, with expected earnings of $2.82 per share, a decrease from $4.16 per share in the same period last year [1] - The consensus estimate for Humana's quarterly revenue is $32.01 billion, up from $29.4 billion a year earlier [1] Dividend Announcement - On October 28, Humana declared a cash dividend of 88.5 cents per share to stockholders [2] - Following the announcement, Humana's shares rose by 0.7%, closing at $281.87 [2] Analyst Ratings and Price Targets - B of A Securities maintained a Neutral rating and raised the price target from $280 to $300 [4] - Mizuho maintained an Outperform rating and increased the price target from $300 to $345 [4] - Barclays maintained an Equal-Weight rating and cut the price target from $315 to $245 [4] - RBC Capital maintained an Outperform rating and raised the price target from $283 to $322 [4] - Argus Research reiterated a Hold rating with a price target of $281.99 [4]