Humana 2025 Q3 Earnings Sharp Net Income Decline of 59.6% Amid Revenue Growth

Humana (HUM) reported its fiscal 2025 Q3 earnings on Nov 6, 2025. The company’s revenue and earnings results showed a mixed performance, with significant revenue growth but a sharp decline in profitability. Humana revised its Medicare Advantage membership forecast and reaffirmed its full-year EPS guidance.

, driven by robust performance across its segments. Premiums revenue led the charge at $30.71 billion, with Medicare stand-alone PDP contributing $1.75 billion and Individual Medicare Advantage accounting for $22.46 billion. The Insurance segment generated $31.19 billion, while CenterWell’s pharmacy solutions added $352 million. , .

Despite strong revenue growth, the significant EPS decline highlights operational challenges. Humana’s net income fell 59.6% to $194 million, with EPS dropping 59.4% to $1.62 compared to $3.99 in the prior-year period.

Post-earnings price action for Humana showed mixed results over the past three years. . Quarterly performance varied, with Q1 2024 delivering 8.2% and Q4 2024 posting a weaker 1.5%. The strategy performed best when earnings beats aligned with positive market reactions, as seen in Q1 and Q3 2024. However, Q2 2024 underperformed due to a muted market response. Broader market conditions and stock price movements outside the immediate post-earnings period also influenced outcomes.

CEO Commentary

Humana’s CEO emphasized strategic investments in operational efficiency and , . The company remains confident in its pricing strategy and ability to return to growth, with new sales at the high end of expectations. Leadership highlighted progress in capital allocation, including asset sales and acquisitions like Village’s Health in Florida. Despite challenges in the Medicare Advantage sector, .

Guidance

Humana revised its FY 2025 Medicare Advantage membership forecast to a 425,000 member decline, an improvement from earlier estimates. The company maintains its full-year benefit ratio guidance at 90.1%-90.5% and adjusted EPS guidance of $17.00. Strategic initiatives, including operational efficiencies and AI integration, are expected to support long-term value creation.

Additional News

1. Strategic Acquisitions: Humana completed the acquisition of Village’s Health in Florida, enhancing its healthcare service offerings.

2. Operational Efficiency: The company partnered with Genpact to streamline financial operations and deployed an AI platform to improve call center efficiency, targeting $100 million in savings.

3. Membership Forecast Revision, reflecting stronger retention and sales performance.