Humana tops quarterly estimates, maintains profit outlook as medical costs stay in line - CNBC

What the report says

CNBC reported that Humana’s second-quarter results came in ahead of Wall Street expectations, helped by performance in both its insurance operations and CenterWell health-care services business. The Louisville, Kentucky-based health insurer reported adjusted earnings of $7.61 a share on revenue of $40.87 billion, compared with LSEG analyst expectations of $7.22 a share and $40.61 billion in revenue.

Humana also kept its 2026 adjusted earnings outlook at at least $9 per share. Chief Financial Officer Celeste Mellet told CNBC that medical and pharmacy cost trends were broadly in line with the company’s assumptions for both new and existing members, with some favorable movement in inpatient care, particularly among members treated by value-based providers.

Even with the earnings beat, CNBC said Humana shares dropped more than 6% in afternoon trading. Cantor Fitzgerald analysts described the unchanged profit outlook as disappointing, according to the report, because investors had grown more optimistic after some rival Medicare Advantage insurers raised guidance while showing progress managing elevated medical costs.

The report noted that Humana’s medical benefit ratio, a closely watched measure of medical expenses relative to premiums, was 91.2% in the quarter, matching analyst expectations but above 89.9% a year earlier. Humana is a major Medicare Advantage provider, and the sector has faced pressure from higher use of care after the pandemic and expensive specialty drugs. CNBC reported that Mellet said Humana sees medical costs as more stable, while drug-cost trends remain elevated, and expects 2027 plan changes to support profitability goals through 2028.