Humana earnings Q2 2026 beat forecasts as costs steady
Humana beat Q2 profit and revenue estimates, kept its 2026 profit target and said Medicare Advantage medical costs are stabilizing.
By Sal Moretti · Money Reporter
3 min read
Humana earnings Q2 2026 results gave Wall Street a clean beat Wednesday, with the health insurer topping profit and revenue expectations while holding its full-year adjusted profit forecast at least $9 a share.
The Louisville-based company said second-quarter revenue rose to $40.87 billion from $32.39 billion a year earlier. Adjusted earnings came in at $7.61 a share, above the $7.22 analysts expected in an LSEG survey. Revenue also beat the $40.61 billion forecast.
Net income reached $694 million, or $5.73 a share, compared with $545 million, or $4.51 a share, in the same quarter last year. Humana said adjusted results excluded items including amortization and impairment charges.
What did Humana report in Q2 2026?
Humana said the quarter was helped by its insurance business and its CenterWell health care services unit. Both divisions came in above analysts’ sales estimates, according to StreetAccount.
Chief Financial Officer Celeste Mellet told CNBC that medical and pharmacy cost trends were in line with Humana’s expectations for both new and existing members. She said inpatient medical costs were slightly favorable, especially among members treated by value-based care providers.
The closely watched medical benefit ratio landed at 91.2% for the quarter, matching analyst expectations. That ratio measures how much an insurer pays for medical care compared with the premiums it collects, and a lower number usually points to stronger profitability.
The figure was higher than the 89.9% Humana reported in the year-earlier period. Mellet said the latest ratio also fit the company’s internal expectations.
Medicare Advantage plans remain a hot zone for investors because insurers have been dealing with higher care use after the pandemic and expensive specialty medicines, including GLP-1 drugs. Humana is one of the biggest Medicare Advantage providers, serving people 65 and older as well as people with disabilities.
Why did Humana shares fall after earnings?
Humana shares dropped more than 4% in premarket trading Wednesday despite the stronger-than-expected quarter. The pressure came after the company left its 2026 adjusted profit outlook unchanged.
Cantor Fitzgerald analysts said in a Wednesday note that the unchanged forecast was a “disappointment,” given that some other Medicare Advantage insurers have recently beaten expectations and lifted guidance. Investors have been raising their hopes for the group as companies show signs of getting medical costs under better control.
Mellet said Humana now views medical costs as more stable. She said the company is watching whether inpatient admissions keep declining this year, while expectations for next year are fairly consistent.
Pharmacy costs remain more pressured. Mellet said drug cost trends are still very elevated because of medicine prices and new product launches, and she expects those costs to be slightly higher next year than in 2026. She said the issue is tied to broader drug costs rather than member demand.
Humana expects changes to its 2027 Medicare Advantage plans to improve profitability, according to Mellet. She said the company remains on track toward a sustainable pretax margin of at least 3% by 2028, helped by membership growth, stronger Medicare Advantage quality ratings, pricing discipline and cost control.
This story draws on original reporting from CNBC.