Humana Reports First Quarter 2026 Financial Results; Affirms Full Year 2026 Adjusted Financial Guidance
Humana has reported a solid set of financial results for the first quarter of 2026, highlighting steady operational performance, continued membership growth, and ongoing execution of its long-term strategic initiatives. At the same time, the company reaffirmed most of its full-year outlook while making a modest revision to its GAAP earnings expectations.
For the quarter ended March 31, 2026, Humana delivered diluted earnings per share (EPS) of $9.83 on a GAAP basis and $10.31 on an adjusted (non-GAAP) basis. The adjusted EPS result landed at the high end of the company’s previously issued guidance range, reflecting performance at approximately 110% to 115% of its full-year 2026 adjusted EPS expectations. Despite a slight year-over-year decline compared to the same period in 2025, the results demonstrate resilience in the company’s core operations amid industry headwinds.
From a profitability standpoint, consolidated pretax income reached $1.595 billion under GAAP, compared with $1.691 billion in the first quarter of 2025. On an adjusted basis, pretax income totaled $1.670 billion, down from $1.893 billion a year earlier. The changes were influenced by several factors, including valuation adjustments related to minority investments, transformation-related costs tied to value creation initiatives, and amortization of intangible assets. These adjustments are excluded from non-GAAP figures to provide a clearer view of underlying business performance.
A key performance metric for Humana’s Insurance segment—the benefit ratio—came in at 89.4% for the quarter. This was slightly better than management’s expectation of “just under 90%,” signaling effective cost management and stable medical expense trends. The company maintained its full-year 2026 Insurance segment benefit ratio guidance at 92.75%, plus or minus 25 basis points, indicating confidence in its ability to manage healthcare costs over the remainder of the year.
Humana also reaffirmed its adjusted EPS guidance for full-year 2026 at “at least $9.00.” However, it revised its GAAP EPS guidance downward to “at least $8.36,” compared to its prior estimate of “at least $8.89.” The revision reflects anticipated pressures from factors such as lower Medicare Advantage Star Ratings, which are expected to reduce quality bonus payments. Despite this adjustment, management continues to express confidence in the company’s strategic direction and operational execution.
Membership growth remains a central pillar of Humana’s strategy, particularly within its Medicare Advantage (MA) business. The company reaffirmed its expectation of approximately 25% growth in individual MA membership for 2026 compared to 2025. This growth is being driven by strong new sales, improved retention, and enhancements in customer experience resulting from a more customer-focused benefits strategy and upgraded service approach.
In addition to insurance growth, Humana continues to expand its healthcare services segment, particularly through its CenterWell brand. CenterWell Senior Primary Care experienced significant momentum during the quarter, adding approximately 110,500 patients sequentially—an increase of more than 22%. This growth includes around 59,000 patients and 54 centers acquired through the recent purchase of MaxHealth, underscoring the company’s commitment to scaling its integrated care delivery model.
The company is also advancing its pharmacy operations. CenterWell Pharmacy has entered into a partnership with Cost Plus to develop comprehensive, end-to-end prescription drug solutions for employers. This collaboration aims to improve transparency, affordability, and efficiency in drug pricing and distribution, addressing a key challenge in the U.S. healthcare system.
Another area of expansion is Humana’s state-based contracts business. During the first quarter, the company added approximately 50,000 members in this segment, driven by the launch of new programs in Michigan, Illinois, and South Carolina. These additions reflect Humana’s growing presence in government-sponsored healthcare programs and its ability to secure and implement new contracts effectively.
Leadership transitions within the organization are also underway. The company confirmed that George Renaudin, President of the Insurance segment, will retire on June 29, 2026. Until then, he will focus on overseeing the annual Medicare Advantage bid process. Aaron Martin, currently President of Medicare Advantage, has already begun managing day-to-day operations of the Insurance segment and will officially assume the role of segment president upon Renaudin’s retirement. Additionally, John Barger, a veteran with 30 years of industry experience, has taken on leadership of Medicare Advantage operations and will formally become President of that division later in the year.
Looking ahead, Humana acknowledges that its full-year adjusted EPS is expected to decline compared to 2025 levels. This anticipated drop is largely attributed to the impact of lower Star Ratings for bonus year 2026. While the company is implementing mitigation strategies, these ratings changes are expected to weigh on revenue and profitability.
Despite these challenges, Humana remains focused on executing its multi-year transformation program. This initiative is designed to realign the company’s cost structure, operating model, and technology infrastructure with evolving market dynamics. The program includes efforts to streamline operations, enhance digital capabilities, and improve efficiency across the organization.
Management emphasized that the company’s strategic priorities remain centered on delivering high-quality care, improving customer experience, and expanding its integrated healthcare ecosystem. By combining insurance offerings with care delivery and pharmacy services, Humana aims to create a more coordinated and value-driven healthcare model.
The company also continues to highlight risks that could impact future performance. These include potential inaccuracies in estimating healthcare costs, regulatory changes, competitive pressures, cybersecurity threats, and legal or contractual disputes. Additionally, the outcome of ongoing litigation related to Medicare Advantage Star Ratings remains uncertain and could further affect financial results.
Humana’s leadership expressed optimism about the company’s trajectory. CEO Jim Rechtin noted that the organization is off to a strong start in 2026 and is making meaningful progress in areas that matter most to customers, including care quality and overall experience.
In summary, Humana’s first-quarter 2026 results reflect a stable and disciplined operating environment, supported by strong membership growth and continued strategic execution. While certain headwinds—particularly related to Medicare Advantage ratings—are expected to impact full-year earnings, the company remains well-positioned to navigate these challenges and pursue long-term growth opportunities across its integrated healthcare platform.
About Humana
Humana is a leading U.S. healthcare company. Through our Humana insurance services and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare and Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com.
