Humana Inc. Website

Humana Inc.

NYSE-HUM

Company Overview

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through three segments: Retail, Group and Specialty, and Healthcare Services. The company offers medical and supplemental benefit plans to individuals. It also has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully insured medical and specialty health insurance benefits comprising dental, vision, and other supplemental health benefits; and administrative services only products to individuals and employer groups, as well as military services, such as TRICARE T2017 East Region contract. Further, it offers pharmacy solutions, provider services, and home solutions services, such as home health and other services to its health plan members, as well as to third parties. As of December 31, 2021, the company had approximately 17 million members in medical benefit plans, as well as approximately 5 million members in specialty products. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

  • Name

    Humana Inc.

  • CEO

    James A. Rechtin

  • Website

    www.humana.com

  • Sector

    Health Care Providers and Services

  • Year Founded

    1961

Company Statistics

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Bulls Say

  • With its prowess in Medicare Advantage plans, Humana looks likely to benefit from strong demographic trends and increasing popularity of that program in the long run.

  • Humana enjoys industry-leading customer satisfaction metrics that positively influence its brand and reputation in the consumer-driven Medicare Advantage and Medicaid insurance sectors.

  • Humana's growth trajectory could rebound from current weakness, with management calling for pretax profits to more than double from 2025 to 2028 and grow in the low double digits in the long run at its June 2025 investor day.

Bears Say

  • Healthcare policy changes may remain a key threat to private insurers like Humana for the foreseeable future.

  • With its relatively concentrated operations, any missteps or significant regulatory changes in its target markets could have an amplified effect on Humana's bottom line relative to peers.

  • As competitors increasingly focus on the Medicare Advantage market for growth, Humana may eventually face threats to its top-tier position in that attractive market.

Source: Morningstar Analysis - Nov 12, 2025

What's happening

Nov 5, 2025 - Dec 5, 2025

Humana Inc. Faces Significant Challenges Amidst Market Decline

  • Humana reported a significant drop in adjusted EPS, leading to lowered full-year guidance.
  • Mixed analyst ratings reflect uncertainty about future performance and ongoing litigation issues.
  • Despite some positive developments, investor anxiety prevails due to disappointing financial projections.

Over the past month, Humana Inc. (HUM) experienced a notable decline of 8.9%, significantly underperforming compared to the S&P 500's return of 1.3%. This stark contrast highlights HUM's struggles within the broader market context, as it also lagged behind the Health Care sector (XLV), which faced a downturn of 15.0%. The stock performance was heavily influenced by several bearish developments that overshadowed any positive news.

In early November, Humana reported its third-quarter earnings with an adjusted EPS of $3.24 that exceeded expectations but marked a significant decrease from $4.16 in the same quarter last year. Although revenue grew to $32.65 billion—above forecasts—the company lowered its full-year GAAP EPS guidance from approximately $13.77 to about $12.26 and anticipated losing around 425,000 members in individual Medicare Advantage plans due to rising medical costs affecting profitability; this resulted in a medical cost ratio climbing to 91.1%. These results triggered substantial negative sentiment among investors and analysts alike.

The company's challenges were compounded by mixed analyst ratings during this period; while firms like Mizuho raised their price targets for HUM, others such as Goldman Sachs and Deutsche Bank issued downward revisions alongside sell ratings or hold recommendations based on concerns regarding future performance amidst ongoing litigation related to Medicare quality bonus payments and star rating assessments.

Conversely, there were moments of optimism reflected in events such as Humana’s appeal against cuts to Medicare quality bonuses and reports indicating increased applications for their Medicare Advantage plans during enrollment periods; however, these positives were not enough to offset investor anxiety stemming from financial projections that fell short of consensus estimates.

Overall, despite some bullish indicators throughout November—including management meetings aimed at enhancing investor relations—the prevailing bearish trends dominated HUM's stock trajectory over this month-long period leading up until December 2025.Humana Inc underperformed the Health Care (XLV) sector by -15% relative performance metrics indicate an underperformance of -10% relative to the S&P.

NYSE:HUM