WS Investor
11 Feb 2026, 21:19
Humana Inc. reported a fourth-quarter 2025 net loss but delivered full-year results in line with management expectations, while introducing cautious 2026 earnings guidance reflecting Medicare Star Ratings headwinds.
In the fourth quarter of 2025, Humana posted a GAAP net loss per share of $6.61, compared with a loss of $5.76 in the prior-year period. Adjusted net loss per share was $3.96, versus $2.16 a year earlier. Consolidated pretax loss totaled $1.01 billion on a GAAP basis, while adjusted pretax loss was $596 million.
For full-year 2025, GAAP EPS was $9.84, compared with $9.98 in 2024. Adjusted EPS increased to $17.14 from $16.21 in the prior year. Full-year consolidated revenues reached $129.7 billion, up from $117.8 billion in 2024.
The Insurance segment reported a fourth-quarter GAAP benefit ratio of 93.1%, while the full-year benefit ratio was 90.4%, slightly better than the company’s guidance range of 90.1% to 90.5%. Adjusted consolidated operating cost ratio improved to 11.5% for the year.
Operationally, the company highlighted continued platform expansion. CenterWell Senior Primary Care grew by 100,600 patients in 2025, an increase of more than 25%, including approximately 32,000 patients from the acquisition of The Villages Health. Humana’s Medicaid footprint now spans 13 states, with Georgia and Texas expected to launch in 2027.
For 2026, Humana introduced GAAP EPS guidance of at least $8.89 and adjusted EPS guidance of at least $9.00. The anticipated year-over-year decline primarily reflects the impact of lower Medicare Star Ratings for Bonus Year 2026, net of mitigation efforts. The company expects individual Medicare Advantage membership growth of approximately 25% in 2026, driven by new sales and improved retention.
Management reiterated confidence in its consumer-focused strategy, while acknowledging regulatory and Star Ratings-related pressures heading into 2026.
Source: Business Wire.
In the fourth quarter of 2025, Humana posted a GAAP net loss per share of $6.61, compared with a loss of $5.76 in the prior-year period. Adjusted net loss per share was $3.96, versus $2.16 a year earlier. Consolidated pretax loss totaled $1.01 billion on a GAAP basis, while adjusted pretax loss was $596 million.
For full-year 2025, GAAP EPS was $9.84, compared with $9.98 in 2024. Adjusted EPS increased to $17.14 from $16.21 in the prior year. Full-year consolidated revenues reached $129.7 billion, up from $117.8 billion in 2024.
The Insurance segment reported a fourth-quarter GAAP benefit ratio of 93.1%, while the full-year benefit ratio was 90.4%, slightly better than the company’s guidance range of 90.1% to 90.5%. Adjusted consolidated operating cost ratio improved to 11.5% for the year.
Operationally, the company highlighted continued platform expansion. CenterWell Senior Primary Care grew by 100,600 patients in 2025, an increase of more than 25%, including approximately 32,000 patients from the acquisition of The Villages Health. Humana’s Medicaid footprint now spans 13 states, with Georgia and Texas expected to launch in 2027.
For 2026, Humana introduced GAAP EPS guidance of at least $8.89 and adjusted EPS guidance of at least $9.00. The anticipated year-over-year decline primarily reflects the impact of lower Medicare Star Ratings for Bonus Year 2026, net of mitigation efforts. The company expects individual Medicare Advantage membership growth of approximately 25% in 2026, driven by new sales and improved retention.
Management reiterated confidence in its consumer-focused strategy, while acknowledging regulatory and Star Ratings-related pressures heading into 2026.
Source: Business Wire.