Humana Affirms FY25 Adjusted EPS Guidance of $17.00

Humana reaffirms its FY25 adjusted EPS guidance of $17.00, consistent with its July 30 press release. The company will not comment on 2026 Medicare Advantage Star Ratings until the Centers for Medicare and Medicaid Services releases final 2026 MA Star Ratings data in October.

Title: Humana Reaffirms FY25 Adjusted EPS Guidance, Plans for 2026 Medicare Advantage Star Ratings

Humana Inc. (HUM) has reaffirmed its fiscal year 2025 (FY25) adjusted earnings per share (EPS) guidance of $17.00, consistent with its July 30 press release. This guidance aligns with the company's earlier forecast and reflects its ongoing commitment to financial stability. Additionally, Humana has stated that it will not comment on the 2026 Medicare Advantage Star Ratings until the Centers for Medicare and Medicaid Services (CMS) releases the final data in October.

The company's senior management team is scheduled to meet with investors and analysts between September 1, 2025, and September 30, 2025, to discuss these updates and provide further insights into the company's financial outlook. During these meetings, Humana aims to reaffirm its guidance and address any concerns or questions from the investment community.

Recent earnings reports have shown mixed results for Humana. In its second quarter 2025 earnings call on July 30, 2025, the company reported an adjusted EPS of $6.27, which missed the consensus estimate of $6.32. However, revenue exceeded expectations at $32.39 billion, marking a 9.6% increase year-over-year. The company's premiums also improved by 9.1% year-over-year, reaching $30.7 billion.

Investors should note that Humana's recent stock performance has been positive, with shares adding about 19.2% since the last earnings report. However, the company faces challenges such as elevated benefit costs and a decline in individual Medicare Advantage membership. Despite these challenges, the strong performance of the CenterWell unit, driven by pharmacy and primary care businesses, has helped offset some of the negative impacts.

Institutional investors have shown increased interest in Humana, with several firms increasing their stakes in the company. Ameriprise Financial Inc., for example, increased its holdings by 13.4% in the first quarter, while other institutional investors such as Cary Street Partners Investment Advisory LLC, Applied Finance Capital Management LLC, and Achmea Investment Management B.V. also increased their stakes.

Analysts have provided a range of price targets and ratings for Humana, with a consensus target price of $283.29 and an average rating of "Hold." Cantor Fitzgerald has set a price objective of $290.00, while Raymond James Financial has raised its rating to "outperform" with a target price of $315.00. Bank of America, Piper Sandler, and Truist Financial have all lowered their price targets, with Bank of America setting a target of $260.00.

In conclusion, Humana's reaffirmation of its FY25 adjusted EPS guidance and its plan to wait for the CMS data on 2026 Medicare Advantage Star Ratings indicate a cautious yet optimistic approach to its financial future. The company's recent stock performance and increased institutional interest suggest that investors are optimistic about Humana's prospects. However, the challenges faced by the company, such as elevated benefit costs and a decline in Medicare Advantage membership, should be closely monitored.

# References:
[1] https://www.tipranks.com/news/the-fly/humana-backs-fy25-adjusted-eps-17-00-consensus-16-93-thefly
[2] https://www.marketbeat.com/instant-alerts/filing-ameriprise-financial-inc-increases-stock-holdings-in-humana-inc-hum-2025-08-28/
[3] https://finance.yahoo.com/news/why-humana-hum-19-2-153012173.html