Core Insights - Humana reported $32.39 billion in revenue for the quarter ended June 2025, a year-over-year increase of 10.2% [1] - The EPS for the same period was $6.27, down from $6.96 a year ago, with a surprise of -0.79% compared to the consensus estimate of $6.32 [1] Financial Performance - The reported revenue exceeded the Zacks Consensus Estimate of $31.78 billion by 1.93% [1] - The Benefits Expense Ratio was 89.7%, slightly above the average estimate of 89.5% [4] - Medical Membership in Medicare Supplement reached 444.1 thousand, surpassing the estimate of 419.63 thousand [4] - Total Medicare Medical Membership was 8.23 million, slightly above the average estimate of 8.19 million [4] - Premium revenues were $30.72 billion, exceeding the estimate of $30.23 billion, representing a 9.2% increase year-over-year [4] - Investment income was reported at $272 million, a decrease of 8.7% year-over-year [4] - Services revenue was $1.4 billion, exceeding the estimate of $1.31 billion, reflecting a 27.3% year-over-year increase [4] - Revenue from the CenterWell segment was $5.54 billion, above the estimate of $5.21 billion, with an 11.9% year-over-year change [4] - Total Intersegment Revenues showed a change of +6.9% year-over-year, reported at -$4.34 billion compared to the estimate of -$4.18 billion [4] Stock Performance - Humana's shares have returned -7.9% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company raised its full year 2025 EPS outlook from approximately $16.25 to approximately $17, driven by strong performance in CenterWell Pharmacy and better than expected individual MA membership [8][21] - Medical cost trends for the second quarter were in line with expectations, with overall medical and operating costs trending in line or better than expected [21][28] Business Line Data and Key Metrics Changes - Individual MA membership declined less than expected, with a guidance adjustment now assuming a decline of around 500,000 members compared to the previous estimate of 550,000 [9][28] - CenterWell Pharmacy outperformed expectations due to higher direct-to-consumer volume and favorable specialty pharmacy dynamics [19][62] Market Data and Key Metrics Changes - The company is expanding its Medicaid footprint, now active in 10 states with three more states pending, and is optimistic about its performance in the LTSS population [18][32] - The company noted that its Medicaid performance is not directly comparable to peers due to differences in product focus and state footprints [30][32] Company Strategy and Development Direction - The company is focused on enhancing member experience through initiatives like simplifying prior authorization processes and integrating health plan information into MyChart [11][12] - A multi-year transformation is underway to create a more efficient back office, including early retirement programs and outsourcing shared services [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core fundamentals and growth outlook for MA, believing it will deliver compelling shareholder value over the long term [20] - The company is making incremental investments of approximately $100 million to improve member outcomes and operational excellence [21][67] Other Important Information - The company is committed to maximizing shareholder value through share buybacks and prudent capital deployment strategies [22][23] - The company is monitoring the impact of recent CMS regulations and IRA changes on its Part D performance and overall strategy [36][39] Q&A Session Summary Question: Cost trends and Medicaid performance - Management indicated that overall medical and operating costs are trending in line with expectations, with Medicaid performing as anticipated [26][28][33] Question: Part D performance and CMS regulations - Part D member mix and Rx trends are tracking in line with expectations, with no unexpected behavioral changes noted [35][36] Question: Individual PPO market implications - Management believes that product and benefit structure improvements will mitigate risks associated with membership growth and margins [42][45] Question: Inpatient utilization trends in Medicare Advantage - Inpatient utilization is trending in line with expectations, with no acceleration noted [52][53] Question: Updates on STARS performance - Management is confident in operational progress and expects improvement in underlying metrics, though specific data is not available yet [56][59] Question: Specialty pharmacy strength and IRA dynamics - Specialty pharmacy outperformance is attributed to strategic partnerships and broader industry trends, with no unexpected behavioral changes in Part D noted [62][65] Question: Incremental investments and guidance - Management confirmed an additional $100 million in incremental investments aimed at driving returns and supporting transformation efforts [67][68] Question: Membership growth and operational absorption - Management is confident in the product and believes operational absorption of growth will be manageable, with a focus on long-term value [110][111]

Financial Data and Key Metrics Changes - The company raised its full year 2025 EPS outlook from approximately $16.25 to approximately $17, driven by strong performance in CenterWell Pharmacy and better than expected individual MA membership [7][20] - Medical cost trends for the second quarter were in line with expectations, with overall medical and operating costs trending within the expected range [20][25] Business Line Data and Key Metrics Changes - Individual MA membership declined less than expected, with a guidance adjustment now assuming a decline of around 500,000 members compared to the previous estimate of 550,000 [20][26] - CenterWell Pharmacy outperformed expectations due to higher direct-to-consumer volume and favorable specialty pharmacy dynamics [18][60] Market Data and Key Metrics Changes - The company is expanding its Medicaid footprint, now active in 10 states with three more states pending, and is optimistic about its performance in the LTSS population [17][31] - The company noted that its Medicaid performance is running in line with expectations, differentiating itself from peers facing challenges in that segment [31][32] Company Strategy and Development Direction - The company is focused on enhancing member experience through initiatives like simplifying prior authorization processes and integrating health plan information into MyChart [10][11] - A multiyear transformation is underway to enable scalable growth and drive operating leverage, including an early retirement program and outsourcing shared services [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and emphasized the importance of member retention strategies [9][19] - The outlook for the second half of the year remains cautiously optimistic, with underlying fundamentals developing in line or better than expected [20][21] Other Important Information - The company plans to invest an additional $100 million to improve member and patient outcomes, focusing on areas with strong returns [20][66] - The company completed approximately $100 million in share repurchases during the second quarter to offset dilution from employee stock issuance [22] Q&A Session Summary Question: What cost trend is better than expected, and how is Medicaid performing? - Management noted better than expected revenue growth in CenterWell and membership growth, with Medicaid performing in line with expectations [24][25][32] Question: Can you discuss Part D performance and CMS regulations? - Part D member mix and Rx trends are tracking in line with expectations, with no unexpected behavioral changes noted [34][35] Question: How is the individual PPO market impacting membership growth and margins? - Management believes that product and benefit structure improvements will mitigate risks associated with membership growth [41][42] Question: What are the inpatient utilization trends in Medicare Advantage? - Inpatient trends are in line with expectations, with no acceleration noted [51][52] Question: Can you provide an update on STARS performance? - Management indicated that operational progress has been made, but specific data is not available until later [55][56] Question: What is driving the bounce back of returning members? - The bounce back is attributed to members realizing the value of Humana's services after leaving for other plans [84][85]

Humana (HUM) came out with quarterly earnings of $6.27 per share, missing the Zacks Consensus Estimate of $6.32 per share. This compares to earnings of $6.96 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -0.79%. A quarter ago, it was expected that this health insurer would post earnings of $9.98 per share when it actually produced earnings of $11.58, delivering a surprise of +16.03%. Over the last four quarters, the compan ...

Humana raised its profit guidance for the year, bucking a trend in the US health insurance industry after most other companies cut their forecasts in recent months https://t.co/vAo3iU3RRp ...

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 Second Quarter 2025 Financial Results; Raises Full Year 2025 Adjusted EPS and Revenue Guidance LOUISVILLE, KY (July 30, 2025) – Humana Inc. (NYSE: HUM) today reported conso ...

Core Insights - Humana (HUM) is expected to report quarterly earnings of $6.32 per share, reflecting a decline of 9.2% year over year, while revenues are forecasted to reach $31.78 billion, an increase of 8.2% year over year [1] Earnings Estimates - Analysts have revised the consensus EPS estimate down by 0.1% over the past 30 days, indicating a collective reassessment of projections [1][2] Revenue Breakdown - 'Revenues- Premiums' are projected to be $30.23 billion, showing a year-over-year increase of 7.4% [4] - 'Revenues- Services' are estimated at $1.31 billion, indicating a significant year-over-year growth of 19% [4] - 'Revenues- Investment income (loss)' is expected to be $270.96 million, reflecting a decline of 9.1% from the previous year [4] - 'Revenue- Insurance' is anticipated to reach $30.71 billion, marking a 7.7% increase from the prior year [5] Membership Metrics - 'Medical Membership - Medicare stand-alone PDP' is projected to reach 2.45 million, up from 2.34 million in the same quarter last year [6] - 'Medical Membership - State-based contracts and other' is expected to be 1.62 million, compared to 1.39 million a year ago [6] - 'Medical Membership - Group Medicare Advantage' is estimated at 562.63 thousand, an increase from 544.90 thousand year-over-year [7] - 'Medical Membership - Medicare Supplement' is forecasted to reach 419.63 thousand, up from 339.20 thousand in the same quarter last year [7] - 'Medical Membership - Individual Medicare Advantage' is expected to decline to 5.18 million from 5.62 million year-over-year [8] - Total 'Medical Membership - Total Medicare' is projected at 8.19 million, down from 8.50 million a year ago [8] - 'Medical Membership - Military services' is estimated to be 4.94 million, compared to 5.96 million in the previous year [9] Stock Performance - Humana shares have decreased by 1.6% over the past month, contrasting with a 4.9% increase in the Zacks S&P 500 composite [9]

Core Insights - Humana Inc. (HUM) is expected to report second-quarter 2025 results on July 30, with earnings estimated at $6.32 per share and revenues at $31.78 billion, reflecting an 8.2% year-over-year growth in revenues despite a 9.2% decline in earnings [2][6] Financial Performance Expectations - The full-year 2025 revenue estimate for Humana is $126.1 billion, indicating a 7.6% year-over-year increase, while the EPS for the current year is projected at $16.37, showing a 1% gain year-over-year [3] - Humana has consistently beaten earnings estimates in the past four quarters, with an average surprise of 14.3% [3] Earnings Prediction Model - The company has a positive Earnings ESP of +10.51% and a Zacks Rank of 3 (Hold), suggesting a likelihood of an earnings beat this quarter [4] Revenue and Income Growth - The consensus estimate for second-quarter premiums indicates a 7.4% increase year-over-year, with total Medicare expected to grow by 3.8% [7] - Operating income from the Insurance unit is projected to grow by 21.4% compared to the previous year, contributing positively to earnings [8] Cost and Membership Challenges - The CenterWell unit is expected to see a 0.4% decline in operating income, and investment income is projected to drop nearly 9% year-over-year [9] - Total operating costs are anticipated to exceed $30 billion, increasing by more than 5%, which may negatively impact the bottom line [9] - The overall benefits expense ratio is expected to worsen to 89.47%, and insurance membership is projected to decline by 5.8% year-over-year [10] Peer Performance Comparison - Centene Corporation reported a second-quarter adjusted loss per share of 16 cents, missing estimates due to rising medical costs and declining service revenues [11] - Molina Healthcare reported adjusted EPS of $5.48, slightly missing estimates due to higher medical care costs [12] - Elevance Health reported adjusted EPS of $8.84, also missing estimates due to rising medical costs, despite some offset from increasing premiums [12]

Company Overview - Humana (HUM) is expected to report a year-over-year decline in earnings of 9.2%, with an estimated EPS of $6.32 for the quarter ended June 2025, while revenues are projected to increase by 8.2% to $31.78 billion [3][12] - The earnings report is scheduled for release on July 30, and the actual results will significantly influence the stock price depending on whether they meet or exceed expectations [2][12] Earnings Estimates and Trends - The consensus EPS estimate has been revised down by 0.14% over the last 30 days, indicating a slight reassessment by analysts [4] - Humana's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +10.51%, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Humana exceeded the expected EPS of $9.98 by delivering $11.58, resulting in a surprise of +16.03% [13] - Over the past four quarters, Humana has consistently beaten consensus EPS estimates [14] Industry Context - UnitedHealth Group (UNH), another player in the Zacks Medical - HMOs industry, is expected to report a year-over-year EPS decline of 27.4%, with revenues projected at $111.6 billion, up 12.9% [18] - UnitedHealth's consensus EPS estimate has been revised down by 4.5% in the last 30 days, leading to a negative Earnings ESP of -13.1%, combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [19]

Core Insights - Humana Inc. is accelerating efforts to streamline prior authorization processes to enhance care request approvals and reduce administrative burdens for physicians [1][3] - The company aims to improve the healthcare system's complexity and navigation challenges as highlighted by its CEO [2] Group 1: Prior Authorization Reforms - Humana plans to reduce prior authorization requirements by approximately one-third for outpatient services by January 1, 2026 [6] - The company will eliminate authorization requirements for specific diagnostic services, including colonoscopies and certain imaging tests [6] - By 2026, Humana aims to provide decisions within one business day for at least 95% of complete electronic prior authorization requests, improving from over 85% currently [6] Group 2: Transparency and Reporting - Starting in 2026, Humana will publicly report prior authorization metrics, including approval and denial rates, as well as average decision times [3] - The company is working to expedite the implementation of new federal transparency requirements related to prior authorization [3] Group 3: Legal and Financial Implications - A recent court ruling upheld the government's decision to downgrade Humana's Medicare quality ratings, which may impact future Medicare bonus payments starting in 2026 [4] - Despite a reported decline in Humana's denial rates, the overall industry has experienced higher rejection rates [4] Group 4: Stock Performance - Humana's stock price increased by 3.18% to $230.53, although it is trading near its 52-week low of $206.87 [5]