Humana Q2 Adjusted EPS of $7.61 Beats, GAAP Guidance Cut on Non-Cash Charges

summarizeSummary

Humana reported Q2 Adjusted EPS of $7.61, beating estimates, and affirmed its full-year Adjusted EPS guidance of at least $9.00. GAAP EPS guidance was cut to at least $6.52 due to non-cash charges, but the underlying business showed strong membership growth and stable margins.

check_boxKey Events · Earnings and Guidance · HUM

• Q2 Adjusted EPS Beats

  Adjusted EPS of $7.61 exceeded the $9 full-year floor, with YTD Adjusted EPS of $17.91. GAAP EPS was $5.73, impacted by non-cash put/call adjustments and value creation charges.

• GAAP Guidance Cut, Adjusted Affirmed

  FY 2026 GAAP EPS guidance revised to 'at least $6.52' from 'at least $8.36' due to non-cash items, while Adjusted EPS guidance held at 'at least $9.00'.

• Medicare Advantage Membership Surge

  Individual MA membership grew approximately 25% year-over-year to 6.45 million, driven by new sales and improved retention.

• CenterWell Expansion

  CenterWell primary care patients grew 27% YTD to 622,000, supported by acquisitions and organic growth. A new statewide Illinois Medicaid contract was awarded, starting January 2027.

auto_awesomeAnalysis · HUM · Finance

A strong operational quarter delivered Adjusted EPS of $7.61, comfortably above the $9 full-year floor, fueled by robust Medicare Advantage membership growth and disciplined cost management. Yet GAAP EPS guidance was slashed to 'at least $6.52' from $8.36, entirely due to non-cash put/call valuation adjustments and value creation charges—not operational weakness. The affirmed Adjusted EPS outlook and 25% individual MA membership growth underscore underlying business momentum, while the GAAP cut reflects accounting noise. The stock may react to the headline GAAP revision, but the core earnings power remains intact.