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].

Company Overview - UnitedHealth Group Incorporated (UNH) has a market cap of $294.2 billion and operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx, providing health benefits, care delivery, data-driven health services, and pharmacy care solutions [1] Financial Performance - For fiscal Q4 2025, analysts predict an adjusted EPS of $2.09, a significant decline of 69.3% from $6.81 in the same quarter last year [2] - For fiscal 2025, the expected adjusted EPS is $16.30, down 41.1% from $27.66 in fiscal 2024, but anticipated to grow nearly 8% year-over-year to $17.60 in fiscal 2026 [3] Stock Performance - UNH stock has decreased by 35.9% over the past 52 weeks, underperforming the S&P 500 Index's gain of 15.7% and the State Street Health Care Select Sector SPDR ETF's rise of 11.7% during the same period [4] Recent Developments - Despite weaker-than-expected Q3 2025 revenue of $113.16 billion, UNH shares rose slightly as the company reported an adjusted EPS of $2.92, exceeding analyst estimates. The company also raised its 2025 adjusted profit forecast to at least $16.25 per share, indicating confidence in future growth starting in 2026 and progress in stabilizing costs with a medical care ratio (MCR) of 89.9% [5] Analyst Ratings - The consensus rating for UNH stock is "Moderate Buy," with 15 "Strong Buys," 2 "Moderate Buys," 7 "Holds," and 1 "Strong Sell" among 25 analysts. The average price target is $394.91, suggesting a potential upside of 21.6% from current levels [6]

With a market cap of $289 billion, UnitedHealth Group Incorporated (UNH) is a diversified health care company operating globally through four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Its businesses provide health benefit plans, care delivery, data and technology services, and pharmacy care solutions to individuals, employers, government programs, and health systems. Companies valued at $200 billion or more are generally classified as “mega-cap” stocks, and UnitedHealth G ...