10-Q · April 29, 2026
Humana reported Q1 2026 earnings, with revenue of $39.65 billion, an increase of 23.5% compared to the prior year. Gross margins decreased to 92.5%, and operating margins fell slightly to 4.4%, while diluted EPS came in…
Earnings analysis · 10-Q
HUM earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Humana delivered strong 2Q26 top-line growth, with revenue up 26.2% to $40.867 billion and GAAP diluted EPS up 27.1% to $5.73 year over year, driven by Medicare enrollment and CenterWell expansion. However,…
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Humana delivered strong 2Q26 top-line growth, with revenue up 26.2% to $40.867 billion and GAAP diluted EPS up 27.1% to $5.73 year over year, driven by Medicare enrollment and CenterWell expansion. However, profitability quality was mixed: the benefit ratio worsened 140 basis points to 91.1%, sequential EPS fell from $9.83 in 1Q26, and lower reserve-development favorability and Star Ratings pressure remain headwinds. Liquidity improved substantially, with cash rising to $6.9 billion and six-month operating cash flow of $3.220 billion, but cash conversion included a $1.05 billion payment-timing benefit and receivables increased to $5.695 billion.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.73
What stood out
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Revenue rose 26% year over year
Second-quarter revenue increased $8.479 billion, or 26.2% year over year, to $40.867 billion. This also represents a $1.217 billion, or 3.1%, increase from 1Q26 revenue of $39.650 billion.
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Year-over-year EPS growth, sequential decline
Diluted EPS rose $1.22, or 27.1%, year over year to $5.73 from $4.51. Net income attributable to Humana increased $149 million to $694 million; EPS nevertheless declined from $9.83 in 1Q26.
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Insurance enrollment drove profit growth
Insurance segment operating income increased $54 million, or 7.0%, to $820 million. Individual Medicare Advantage membership grew 1,224,400 members, or 23.4%, to 6,453,700, while stand-alone PDP membership rose 1,519,300, or 62.6%, to 3,946,400.
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CenterWell posted strong quarterly growth
CenterWell operating income rose $122 million, or 35.5%, to $466 million. External revenue increased $387 million, or 32.4%, to $1.581 billion, led by primary-care revenue growth of $326 million, or 63.5%, to $839 million.
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Administrative leverage offset medical-cost pressure
Operating-cost efficiency improved: the consolidated operating-cost ratio fell 120 basis points to 9.8% from 11.0%, helping operating income rise $262 million, or 23.9%, to $1.360 billion despite a higher medical-cost ratio.
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Cash generation strengthened materially
Six-month operating cash flow doubled to $3.220 billion from $1.602 billion. After $253 million of year-to-date capital expenditures, implied six-month free cash flow was approximately $2.967 billion, although the filing does not provide standalone quarterly free cash flow.
What to watch
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Medical-cost ratio deteriorated
The consolidated benefit ratio increased 140 basis points year over year to 91.1%, as benefits expense rose 28.3% to $35.370 billion, faster than the 26.2% increase in revenue. Management cites the BY 2026 Star Ratings headwind, higher-cost new MA members and lower favorable reserve development.
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Less favorable reserve development
Favorable prior-period medical-claims reserve development fell to $53 million in 2Q26 from $161 million in 2Q25, a $108 million reduction in a source of benefit-cost favorability.
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Higher debt costs and funding reliance
Interest expense rose $40 million, or 25.5%, to $197 million, reflecting higher average debt and financing actions. Humana issued $1.0 billion of 6.625% junior subordinated notes in March and generated $1.3 billion of net commercial-paper proceeds in the first six months.
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Transformation charges remain ongoing
Transformation/value-creation charges were $56 million in the quarter, up from $29 million a year earlier, and management expects additional charges. The quarter also included a $21 million minority-investment impairment charge.
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Working-capital benefit may reverse
Receivables increased $2.425 billion to $5.695 billion from year-end, including a $2.283 billion increase in Medicare receivables. Operating cash flow benefited from timing, including a $1.05 billion Medicaid state-directed payment settled shortly after June 30.
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No formal risk-factor update; rate sensitivity persists
Item 1A reports no changes to the risk factors in the 2025 Form 10-K. Separately, a 1% interest-rate increase would reduce the fair value of securities by approximately $766 million; the investment portfolio had $1.0 billion of gross unrealized losses at June 30.
Management's outlook
The 10-Q contains no quantitative earnings or revenue outlook. Management states that existing liquidity resources are adequate for operating and regulatory requirements, acquisitions, capital expenditures, debt refinancing/repayment and share repurchases for at least the next 12 months.
Earlier filings 4
10-K · February 19, 2026
Humana’s 2025 Form 10‑K emphasizes an integrated care delivery strategy (Insurance + CenterWell) anchored in Medicare/Medicaid contracts and owned care capabilities (primary care, home health, pharmacy). Revenue grew to…
10-Q · November 5, 2025
Humana reported Q3 2025 revenue of $32,649,000,000 (up $3,252,000,000 or +11.1% vs Q3 2024's $29,397,000,000) but operating income and EPS declined materially; income from operations fell to $400 million from $728…
10-Q · April 26, 2023
Humana reported Q1 2023 revenues of $26,742 million (up $2,772 million or 11.6% vs Q1 2022) and GAAP diluted EPS of $9.87 (up $2.58 or 35.4% vs $7.29 in Q1 2022). Operating income was $1,719 million (operating margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.