Humana posted a Q2 2026 insurance segment benefit ratio of 91.2%, in line with management's guidance of slightly above 91%, as a roughly 25% year-over-year surge in individual Medicare Advantage membership drove consolidated revenue to $40.87 billion for the quarter.
The Louisville, Kentucky-based health insurance and care services company reported GAAP diluted earnings per share of $5.73 for the three months ending in June 30, up from $4.51 in the prior-year quarter. On an adjusted basis, diluted EPS rose to $7.61 from $6.27, a 21% increase.
Consolidated pretax income on a GAAP basis reached $952 million in the quarter, up from $741 million in Q2 2025. Adjusted pretax income came in at $1.25 billion, compared with $1.02 billion a year earlier.
Revenue for the first half of 2026 reached $80.52 billion, up from $64.5 billion in the same period last year. The consolidated adjusted operating cost ratio fell to 9.7%, down 120 basis points from 10.9% in Q2 2025.
"The first half of the year went well, and we're right where we said we'd be at Investor Day last year," said Jim Rechtin, Humana's president and chief executive officer. "When we get the clinical care right and run the business more efficiently, everything else follows - stronger earnings and better health and experiences for the people we serve.”
Humana affirmed its full-year 2026 adjusted EPS guidance of at least $9, while revising its GAAP EPS guidance to at least $6.52 from a prior estimate of at least $8.36. The company attributed the GAAP revision to non-cash items and value creation initiative charges rather than changes in its core operating outlook.
The adjusted EPS guidance itself anticipates a year-over-year decline from 2025 levels, a consequence of the Medicare Advantage Star Ratings headwind weighing on quality bonus payments in 2026. Full-year insurance segment benefit ratio guidance was held at 92.75%, plus or minus 25 basis points.
Medicare Advantage membership growth of approximately 25% over 2025 was driven by new sales and improved retention. The company also reported year-to-date growth of 130,900 patients, or 27%, in its CenterWell Senior Primary Care business.
Humana broadened its Medicaid footprint with the award of a statewide Illinois Medicaid managed care contract. The contract is expected to go live in January 2027, with Humana identified as the only new entrant among the six organizations awarded the contract.
On a year-to-date basis, GAAP EPS reached $15.55 and adjusted EPS stood at $17.91, compared with $14.81 and $17.85, respectively, in the same period of 2025.
In a separate announcement, Humana's board elected Paul Smith and Frederick Crawford as new directors, effective immediately, bringing the total number of directors to 13. The additions are the latest in a series of board changes as Humana manages a period of regulatory and financial scrutiny in its core Medicare Advantage business.
Smith is the chief commercial officer at Anthropic, the artificial intelligence company, where he leads commercial strategy and global go-to-market operations. He brings more than 30 years of experience in enterprise technology, with prior senior leadership roles at ServiceNow, Salesforce, and Microsoft.
Crawford spent more than 30 years in insurance and banking, most recently serving as president and chief operating officer of Aflac before his retirement in 2024. Before Aflac, he held chief financial officer roles at CNO Financial Group and Lincoln Financial Group. Crawford currently serves on the board of Webster Financial Corporation.
Kurt J. Hilzinger, Humana's chairman, said Smith and Crawford bring technology and AI expertise alongside deep insurance financial experience.
“Paul and Fred are both proven, accomplished executives whose experiences will complement our Board’s expertise well," he said."Their perspectives will be invaluable as we advance Humana’s long-term vision to become a consumer healthcare company."
