Humana (HUM) Q4 2025 earnings summary

Executive summary

• Delivered strong 2025 performance with robust membership growth, improved retention, and a consumer-centric strategy focused on sustainable margins.

• Achieved approximately 1 million new members (20% growth) in AEP, with over 70% of new sales from competitor plan switches and a 500 basis point improvement in retention year-over-year.

• FY 2025 revenues grew to $129.7B, up from $117.8B in FY 2024, driven by higher Medicare and state-based contract premiums and membership growth.

• CenterWell segment saw over 25% patient growth in Senior Primary Care, including 32,000 from The Villages Health acquisition.

• Ongoing transformation and efficiency initiatives are progressing, with significant cost savings and operating leverage expected through 2028.

Financial highlights

• Reported adjusted EPS of $17.14 for 2025, exceeding initial guidance of $16.25.

• FY 2025 GAAP EPS was $9.84; 4Q25 GAAP net loss per share was $6.61, adjusted net loss per share was $3.96.

• FY 2025 operating cash flows were $921M, down from $2.97B in FY 2024, mainly due to timing impacts and working capital changes.

• Full-year insurance segment benefit ratio was 90.4%, slightly better than guidance.

• Investments made in network management and technology to support future growth.

Outlook and guidance

• FY 2026 adjusted EPS expected to be at least $9.00, with a year-over-year decline due to a $3.5 billion Stars headwind.

• FY 2026 consolidated revenues projected at least $160B; Insurance segment at least $155B; CenterWell at least $25B.

• Anticipates FY 2026 individual Medicare Advantage membership growth of ~25% over 2025, with group Medicare Advantage up 150,000 and stand-alone PDP up 1,000,000.

• Insurance segment benefit ratio for FY 2026 guided to 92.75% +/- 25 bps; consolidated operating cost ratio guided to 10.0% +/- 25 bps.

• Guidance for 2026 is more conservative than usual, reflecting dynamic environment and embedded cost trend assumptions.