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Key Takeaways Humana is expected to post strong Q2 revenue growth driven by higher premiums and Medicare expansion.HUM's rising Insurance and CenterWell operating income support earnings beat hopes.Higher opex, weaker investment income and a rising benefits expense ratio may partially offset positives. Humana Inc. (HUM - Free Report) is set to report second-quarter 2026 results on July 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.22 per share on revenues of $40.65 billion.

The second-quarter earnings estimate has witnessed three upward revisions and no movement in the opposite direction over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 0.8%. Yet, the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 25.5%.

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For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.60 billion, implying a rise of 25.3% year over year. However, the consensus mark for current-year EPS is pegged at $9.25, implying a plunge of around 46% on a year-over-year basis.

HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.

Q2 Earnings Whispers for HUMOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.

Humana has an Earnings ESP of +1.71% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Shaping HUM’s Q2 Results?The Zacks Consensus Estimate for HUM’s second-quarter premiums indicates a 25.6% increase from the prior-year quarter’s reported figure, whereas our model predicts 24% growth. We expect total Medicare to witness 26.6% growth in the quarter under review. Similarly, the consensus mark for service revenues signals a 22.3% increase from a year ago, whereas our model predicts a nearly 16% jump.

Also, the Zacks Consensus Estimate for insurance membership predicts a 18.2% year-over-year growth, whereas specialty membership is expected to rise 3.7%.

The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The same for the CenterWell unit predicts a 12.8% growth from the year-ago level. The above-mentioned factors are expected to have positioned the company for an earnings beat in the second quarter.

However, the consensus estimate indicates that Humana’s investment income will see a 13.5% drop from the year-ago level. We expect total operating costs to increase 24.4% in the second quarter, bringing the figure above $38.9 billion. This is likely to have led to a year-over-year decline in the bottom line.

The consensus mark for insurance benefits expense ratio is pegged at 91.3% for the to-be-reported quarter, deteriorating from 89.9% a year ago. These are likely to have partially offset the positives.

How Did Peers Perform?Several healthcare companies, including UnitedHealth Group Incorporated (UNH - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Elevance Health, Inc. (ELV - Free Report) , have already reported their financial results for the June quarter of 2026. Here’s how they performed:

UnitedHealth reported second-quarter 2026 adjusted EPS of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Its strong quarterly results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in UNH’s Optum Health, Optum Rx and declining risk-based membership partially offset the positives.

Molina reported second-quarter 2026 adjusted EPS of $1.51, which beat the Zacks Consensus Estimate by 10.2%. But the bottom line declined 72.4% from the year-ago period's level. MOH’s earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.

Elevance reported second-quarter 2026 adjusted EPS of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year.The quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The upside was partly offset by a decline in ELV’s overall medical membership and an elevated expense level.

Key Takeaways Humana's CenterWell posted $6.1B in Q1 2026 revenues, up 19.7%, with growth across all business lines.HUM added patients and centers via MaxHealth and expanded pharmacy services through the Cost Plus partnership.HUM expects CenterWell to generate at least $25B in 2026 revenues as it grows beyond insurance. CenterWell is playing a growing role in Humana Inc.'s (HUM - Free Report) strategy to evolve beyond its traditional health insurance business. By combining primary care, home health and pharmacy services under one platform, CenterWell helps HUM deliver more coordinated care while supporting better health outcomes and improving the overall patient experience.

The segment is also emerging as a meaningful growth driver. In the first quarter of 2026, CenterWell generated $6.1 billion in revenues, up 19.7% year over year, reflecting growth across all three business lines. Higher Medicare enrollment and continued expansion of its payor-agnostic client base contributed to the increase. HUM expects the segment’s total revenues to generate at least $25 billion in 2026.

Humana is further strengthening CenterWell's platform through strategic investments and acquisitions. During the first quarter, CenterWell Senior Primary Care recorded sequential patient growth of 110,500, including approximately 59,000 patients and 54 centers from the recent MaxHealth acquisition. The expansion broadens the company's primary care network while creating additional opportunities to deliver coordinated, value-based care. HUM is also broadening its pharmacy capabilities through its Cost Plus partnership, which aims to develop end-to-end prescription drug solutions for employers.

HUM is also improving operational efficiency by increasing automation and using AI-enabled analytics to identify care gaps, accelerate chronic disease detection and support more proactive care management. These initiatives can improve clinical outcomes while enhancing productivity across the platform. As CenterWell continues to expand its care delivery network and technology capabilities, it is evolving into a key long-term growth engine that diversifies Humana's business beyond health insurance while supporting sustainable earnings growth.

How Are Competitors Faring?Some of HUM’s major competitors in the value-based care space are UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .

UnitedHealth, through its Optum segment, is scaling AI-driven care management, pharmacy and provider solutions to improve care coordination and operational efficiency. Its integrated care model supports value-based reimbursement while diversifying revenues beyond its insurance business. UnitedHealth’s total revenues rose 2% year over year in the first quarter of 2026.

Elevance Health is pursuing a similar strategy through Carelon, its healthcare services platform. Carelon combines pharmacy, care delivery and care management capabilities to diversify revenues beyond health insurance. Elevance Health’s total operating revenues rose 1.5% year over year in the first quarter of 2026.

Humana’s Price Performance, Valuation & EstimatesShares of HUM have rallied 49.9% in the year-to-date period compared with the industry’s rise of 8.2%.

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From a valuation standpoint, Humana trades at a forward price-to-earnings ratio of 32.09, significantly above the industry average of 16.80. HUM carries a Value Score of B.

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The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.01 per share, implying a 47.4% drop from the year-ago period.

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HUM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Humana targets insurance margins above 3% by 2028 through pricing and market exits.CenterWell revenues rose 19.7% year over year to $6.1 billion in Q1 2026 amid tech investments.Humana remains on track to serve 7.3 million Medicare Advantage members in 2026. Humana Inc. (HUM - Free Report) has spent the past two years dealing with higher medical costs as more seniors returned for treatments that were delayed during the pandemic. The pressure weighed heavily on Medicare Advantage margins and profitability. The company is now shifting its focus from membership growth to earnings improvement, with the goal of restoring insurance margins to above 3% by 2028.

We’re already seeing early signs of a turnaround. Humana’s first-quarter 2026 adjusted earnings were $10.31 per share, which topped the Zacks Consensus Estimate by 3.5% as medical cost trends began to moderate. Its vital insurance benefit ratio dropped to 89.4% under management’s 90% ceiling. Despite a turbulent industry landscape, HUM remains on track to achieve approximately 25% growth in individual Medicare Advantage membership this year, showing the resilience of its core business.

The company is pursuing disciplined pricing, exiting less profitable markets, and implementing streamlining initiatives, including the sale of its remaining stake in Gentiva, to free up cash. However, HUM’s real competitive advantage lies in its ability to integrate technology with patient care. A prime example is CenterWell, whose revenues increased 19.7% year over year to $6.1 billion in the first quarter of 2026. By investing in digital tools and automation, Humana is cutting out messy administrative overhead while keeping patient care highly efficient.

Headwinds like Medicare funding pressures aren't vanishing overnight. Humana's early progress suggests its turnaround strategy is genuinely gaining traction. With a sharper focus on profitability, operational efficiency, and integrated care, it finally looks well positioned to navigate the challenges ahead.

How Are Humana's Peers Positioned?Humana is not the only health insurer facing elevated medical costs. Peers like UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) have also faced pressure from higher healthcare utilization in recent years.

UnitedHealth has been affected by rising Medicare Advantage costs, but its diversified business model provides some protection. UNH's Optum segment, which spans healthcare services, pharmacy benefits and technology solutions, helps offset pressure on its insurance operations and supports earnings stability.

Elevance Health has likewise reported elevated medical costs as members continue to seek healthcare services at higher rates. While insurance remains its core business, Elevance benefits from a diversified mix of commercial, Medicaid and Medicare plans, which helps reduce dependence on any single market.

HUM’s Price Performance, Valuation and EstimatesShares of HUM have gained 40.2% year to date, outperforming the broader industry’s 22.2% increase.

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From a valuation standpoint, HUM trades at a forward price-to-earnings ratio of 30.26X, up from the industry average of 17.69X. Humana carries a Value Score of B.

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The Zacks Consensus Estimate for HUM’s 2026 earnings implies a 47.4% deterioration year over year, followed by a 66.1% improvement next year.

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The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.