Humana Reports Fourth Quarter 2025 Financial Results; Provides Full Year 2026 Financial Guidance

LOUISVILLE, Ky.--( BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today reported consolidated pretax results and net (loss) earnings per share (EPS) for the quarter ended December 31, 2025 (4Q25) versus the quarter ended December 31 31, 2024 (4Q24) and for the year ended December 31, 2025 (FY 2025) versus the year ended December 31, 2024 (FY 2024) as noted in the tables below.

Consolidated (loss) income before income taxes and equity in net losses (pretax results)

in millions

4Q25 (a)

4Q24 (a)

FY 2025 (a)

FY 2024 (a)

Generally Accepted Accounting Principles (GAAP)

($1,011

)

($862

)

$1,555

$1,721

Amortization associated with identifiable intangibles

Put/call valuation adjustments associated with company's non-consolidating minority interest investments

155

513

296

Value creation initiatives

129

130

449

281

Impact of exit of employer group commercial medical products business

—

(62

)

144

Settlement of certain litigation expenses

—

Loss on sale of business

—

Impairment charges

221

200

253

200

Adjusted (non-GAAP)

($596

)

($296

)

$2,841

$2,702

(Net loss per share) EPS

4Q25 (a)

4Q24 (a)

FY 2025 (a)

FY 2024 (a)

GAAP

($6.61

)

($5.76

)

$9.84

$9.98

Amortization associated with identifiable intangibles

0.07

0.12

0.42

0.50

Put/call valuation adjustments associated with company's non-consolidating minority interest investments

0.45

1.29

4.25

2.45

Value creation initiatives

1.07

1.08

3.72

2.33

Impact of exit of employer group commercial medical products business

—

0.55

(0.52

)

1.19

Settlement of certain litigation expenses

—

0.13

—

Loss on sale of business

0.03

—

0.55

—

Impairment charges

1.83

1.66

2.09

1.65

Cumulative net tax impact of non-GAAP adjustments

(0.80

)

(1.10

)

(3.34

)

(1.89

)

Adjusted (non-GAAP)

($3.96

)

($2.16

)

$17.14

$16.21

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations.

Please refer to the tables above, as well as the consolidated and segment highlight sections in the detailed earnings release for additional discussion of the factors impacting the year-over-year quarterly and FY comparisons.

“We were pleased with our solid financial performance and operational progress in 2025,” said Humana President and CEO Jim Rechtin. "We continue to feel good about our consumer-focused strategy and our individual Medicare Advantage membership growth in 2026, which will allow us to build for the future with even better outcomes and experiences."

FY 2026 Earnings Guidance

Humana introduces its GAAP EPS guidance for the year ending December 31, 2026 (FY 2026) of 'at least $8.89', or 'at least $9.00' on an Adjusted basis. The FY 2026 projected guidance anticipates a year-over-year decline as a result of the Star Ratings headwind for Bonus Year 2026, net of mitigation.

Diluted earnings per share (a)

FY 2026

Guidance

FY 2025

GAAP

at least $8.89

$9.84

Amortization associated with identifiable intangibles

0.15

0.42

Put/call valuation adjustments associated with the company's non-consolidating minority interest investments (b)

—

4.25

Value creation initiatives (b)

—

3.72

Impact of exit of employer group commercial medical products business (b)

—

(0.52

)

Settlement of certain litigation expenses (b)

—

0.13

Loss on sale of business (b)

—

0.55

Impairment charges (b)

—

2.09

Cumulative net tax impact

(0.04

)

(3.34

)

Adjusted (non-GAAP) – FY 2026 projected (b); FY 2025 reported

at least $9.00

$17.14

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as additional reconciliations.

Detailed Press Release

Humana’s full earnings press release, including the statistical pages, has been posted to the company’s Investor Relations site and may be accessed at https://humana.gcs-web.com/ or via a current report on Form 8-K filed by the company with the Securities and Exchange Commission this morning (available at www.sec.gov or on the company’s website).

Conference Call

Humana will host a live question-and-answer session for analysts at 8:00 a.m. Eastern time today to discuss its financial results for the quarter and the company’s expectations for future earnings. In advance of the question-and-answer session, Humana will post prepared management remarks to the Quarterly Results section of its Investor Relations page ( https://humana.gcs-web.com/financial-information/quarterly-results).

A webcast of the 4Q25 earnings call may be accessed via Humana’s Investor Relations page at https://humana.gcs-web.com/.

If you anticipate asking a question during the question-and-answer session, please register in advance at this link - https://register-conf.media-server.com/register/BIb3f01f81dd3b4f7cb8331d38dad89903.

Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID.

The company suggests participants listening via the web or the conference call sign in or dial in at least 15 minutes in advance of the call. For those unable to participate in the live event, the virtual presentation archive will be available in the Historical Webcasts and Presentations section of the Investor Relations page at https://humana.gcs-web.com/, approximately two hours following the live webcast.

Footnotes

The company has included financial measures throughout this earnings release that are not in accordance with GAAP. Management believes that these measures, when presented in conjunction with the corresponding GAAP measures, provide a comprehensive perspective to more accurately compare and analyze the company’s core operating performance over time. Consequently, management uses these non-GAAP (Adjusted) financial measures as consistent indicators of the company’s core business operations from period to period, as well as for planning and decision-making purposes and in determination of incentive compensation. Non-GAAP (Adjusted) financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. The company’s non-GAAP measures are not intended to normalize earnings, eliminate volatility, or represent future performance. Non-GAAP measures are subject to inherent limitations and may differ from similarly titled measures used by other companies. All financial measures in this earnings release are in accordance with GAAP unless otherwise indicated. Please refer to the footnotes for a detailed description of each item adjusted out of GAAP financial measures to arrive at non-GAAP (Adjusted) financial measures.

(a) For the periods covered in this earnings release, the following items are excluded from the non-GAAP financial measures described above, as applicable.

Amortization

(in millions)

4Q25

4Q24

FY 2025

FY 2024

Insurance segment

$17

CenterWell segment

$10

$34

$43

In addition to the reconciliations shown on page 2 of this release, the following are reconciliations of GAAP to Adjusted (non-GAAP) measures described above and disclosed within this earnings release:

Revenues

CONSOLIDATED

Revenues

(in millions)

4Q25

4Q24

FY 2025

FY 2024

GAAP

$32,515

$29,213

$129,664

$117,761

Impairment charges

125

—

125

—

Impact of exit of employer group commercial medical products business

—

(14

)

—

(551

)

Adjusted (non-GAAP)

$32,640

$29,199

$129,789

$117,210

INSURANCE SEGMENT

Revenues

(in millions)

4Q25

4Q24

FY 2025

FY 2024

GAAP

$31,343

$28,170

$124,563

$113,764

Impact of exit of employer group commercial medical products business

—

(14

)

—

(551

)

Adjusted (non-GAAP)

$31,343

$28,156

$124,563

$113,213

Benefit ratio

CONSOLIDATED

Benefit ratio

4Q25

4Q24

FY 2025

FY 2024

GAAP

93.0

91.5

90.2

89.8

Impact of exit of employer group commercial medical products business

—

(0.2

—

(0.1

Adjusted (non-GAAP)

93.0

91.3

90.2

89.7

INSURANCE SEGMENT

Benefit ratio

4Q25

4Q24

FY 2025

FY 2024

GAAP

93.1

92.1

90.4

Impact of exit of employer group commercial medical products business

—

(0.2

—

(0.1

Adjusted (non-GAAP)

93.1

91.9

90.4

90.3

Operating cost ratio

CONSOLIDATED

Operating cost ratio

4Q25

4Q24

FY 2025

FY 2024

GAAP

13.7

14.4

12.0

11.8

Value creation initiatives

(0.4

(0.5

(0.4

(0.2

Impact of exit of employer group commercial medical products business

—

(0.1

Settlement of certain litigation expenses

—

Impairment charges

(0.3

(0.7

(0.1

(0.2

Adjusted (non-GAAP)

13.0

13.2

11.5

11.3

INSURANCE SEGMENT

Operating cost ratio

4Q25

4Q24

FY 2025

FY 2024

GAAP

10.8

11.0

9.1

9.2

Impact of exit of employer group commercial medical products business

—

Settlement of certain litigation expenses

—

Adjusted (non-GAAP)

10.8

11.0

9.1

9.2

Insurance Segment - (Loss) Income from operations

INSURANCE SEGMENT

(Loss) income from operations

(in millions)

4Q25

4Q24

FY 2025

FY 2024

GAAP

($927

)

($646

)

$1,664

$1,289

Amortization associated with identifiable intangibles

Settlement of certain litigation expenses

—

Impact of exit of employer group commercial medical products business

—

177

Adjusted (non-GAAP)

($923

)

($575

)

$1,696

$1,483

(b) FY 2026 GAAP EPS guidance and FY 2026 Adjusted (non-GAAP) EPS guidance exclude the impact of future value changes to items that have not yet been recognized and cannot currently be reasonably estimated.

Cautionary Statement

This news release includes forward-looking statements regarding Humana within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “assumes,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following:

In making forward-looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward-looking statements.

Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:

About Humana

Humana Inc. is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com.