Humana Raises 2025 EPS Outlook to $17 with Strong Performance in CenterWell and Medicare Advantage

Humana has raised its 2025 EPS outlook to $17 due to outperformance from its CenterWell Pharmacy and Medicare Advantage (MA) businesses. The company's Q2 2025 earnings were driven by these factors, as well as advancements in cost efficiency.

Humana Inc. (HUM) has raised its full-year 2025 earnings per share (EPS) outlook to $17, reflecting robust performance in the second quarter (Q2) of 2025. The company reported an EPS of $6.27, surpassing the forecasted $5.87 and a revenue of $32.39 billion, up from the anticipated $31.85 billion. This outperformance was driven by strong results from the CenterWell Pharmacy and Medicare Advantage (MA) businesses, as well as advancements in cost efficiency [1].

Jim Rechten, Humana’s President and Chief Executive Officer, highlighted the company's strategic initiatives, including a partnership with Epic to integrate health plan information into MyChart and the continued expansion of CenterWell value-based primary care clinics. These efforts have contributed to Humana’s competitive positioning and positive market reaction. Following the earnings announcement, Humana’s stock price surged by 8.47% in pre-market trading, reaching $251.83 [1].

Rechten emphasized the company’s focus on improving performance for future benefit years, particularly for STARS (Specialty Pharmacy and Prescription Drug Services). He also underscored the importance of creating a more nimble, technology-enabled organization. Additionally, the company completed $100 million in share repurchases during Q2 and reduced its debt by repurchasing $200 million of debt due in 2027 [1].

The company faces potential challenges, including a 6%+ net rate reduction in home health proposed by CMS and adjustments in Medicare Advantage benefit packages. However, Humana remains committed to its strategic growth initiatives, positioning itself well for continued success. The revised guidance and positive market reaction reflect investor confidence in Humana’s future prospects.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-humana-q2-2025-sees-strong-eps-beat-stock-surges-93CH-4160770