What to Expect From Humana’s Next Quarterly Earnings Report

Core Viewpoint - Humana Inc. is facing significant challenges in its Medicare Advantage business, leading to a projected loss in Q4 2025 and a decline in earnings per share (EPS) for fiscal 2026 [2][5][6]. Company Overview - Humana Inc. is a major health insurance and managed care company based in Louisville, Kentucky, with a market capitalization of approximately $32.9 billion [1]. Earnings Expectations - The company is expected to report a loss of $4.01 per share for fiscal Q4 2025, a decline of 85.7% from $2.16 per share in the same quarter last year [2]. - For fiscal 2025, analysts anticipate a profit of $17.08 per share, reflecting a 5.4% increase from $16.21 per share in fiscal 2024, but a decline of 28.9% year-over-year to $12.14 in fiscal 2026 [3]. Performance Comparison - Humana's stock has underperformed compared to the S&P 500 Index, which returned 16.9%, and the State Street SPDR S&P Health Care Services ETF, which gained 15% over the past 52 weeks [4]. Challenges Faced - The company has encountered ongoing difficulties in its Medicare Advantage business, including a downgrade in quality ratings for several major plans and higher-than-expected medical costs, which have negatively impacted profit margins [5]. - In Q3 2025, revenues increased by 11.1% year-over-year to $32.7 billion, but profits weakened due to rising medical utilization, with the adjusted benefit ratio rising to 91.1% and non-GAAP EPS falling by 22.1% year-over-year to $3.24 [6]. Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for Humana, with a mean price target of $286.50, indicating an upside potential of 4.8% [7].