Humana reported a net income of $162 million for the third quarter, down from $195 million in the same period last year, the company said Nov. 6. The insurer raised its full-year 2026 adjusted EPS guidance to at least $9.50, up from at least $9.00.
On its earnings call with investors, CEO Jim Rechtin said the company’s 2027 star ratings results “approach the highest ratings Humana has ever achieved,” with an average rating of 4.17. Humana previously said it expects a one-time financial tailwind in 2028 as a result, with plans to invest part of the upside into customer experience and clinical outcomes and return some to shareholders.
Mr. Rechtin also shared that early AEP performance is running ahead of initial expectations, and the company currently anticipates membership will be up for 2027.
Total Medicare membership reached 11.2 million as of Sept. 30, up from 8.3 million in the comparable quarter. Total medical membership was 18 million, up from 15 million year over year.
Third quarter revenue reached $41.2 billion, a 26% increase from $32.6 billion in the third quarter of 2025. Medicare membership growth, higher per-member individual MA and standalone prescription drug plan premiums and a growing client base at CenterWell drove the increase.
The insurer’s medical loss ratio was 93.9%, up from 91.1% in the third quarter of 2025, reflecting continued star ratings revenue headwinds, new individual MA members running at higher benefit ratios and lower favorable prior period reserve development. Individual MA pricing, group MA recontracting and ongoing clinical excellence efforts partially offset the increase.
The insurance segment posted $39.1 billion in revenue, up from $31.2 billion year-over-year. The segment had a loss from operations of $303 million, compared to income of $251 million in the third quarter of 2025.
CenterWell brought in $7.2 billion in revenue, up from $5.9 billion at the same point last year. Income from operations fell to $243 million from $305 million, driven partly by higher costs in the primary care business concentrated among a group of patients in a single geography. CenterWell Senior Primary Care grew by nearly 147,000 patients year to date, a 30% increase.
Humana has also continued expanding its Medicaid business, with membership growing by roughly 104,000 this year to span 13 states, including pending contracts in Georgia and Texas.
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