Humana Slashes Unadjusted EPS View, Plans to Exit 600K Member Plans
HUM has more than doubled off its 52-week low of $163.11.
Summary
Humana maintained its adjusted EPS guidance of at least $9 for 2026, but cut its unadjusted EPS outlook to at least $6.52 from $8.36, disappointing investors. The stock fell 6.1% to $365.29, adding to earlier losses. The company also announced plans to exit Medicare plans covering roughly 600,000 members next year to improve margins, a significant strategic shift. CEO Jim Rechtin noted the Trump administration's plan to end a drug-plan subsidy will burden members more than the company. This follows earlier Q2 results that beat estimates but failed to impress, and contrasts with peers like UnitedHealth that raised guidance on lower cost trends.
At the time of this announcement, HUM was trading at $362.82 on NYSE in the Life Sciences sector, with a market capitalization of approximately $43.6B. The 52-week trading range was $163.11 to $428.88. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.