Humana Raises Annual Profit Forecast, Reports Q2 Revenue and EPS Above Estimates

Humana has reported Q2 2025 financial results, with revenue of $32.39B, beating FactSet estimates of $31.87B. Adjusted EPS was $6.27 per share, higher than FactSet's estimate of $5.92. The company has also raised its annual profit forecast and announced plans to eliminate one-third of its prior authorization requirements by 2026 to streamline the process.

Humana Inc. (HUM) reported its second-quarter 2025 financial results, beating FactSet estimates and raising its annual profit forecast. The company reported revenue of $32.39 billion, exceeding FactSet's estimate of $31.87 billion. Adjusted earnings per share (EPS) came in at $6.27 per share, surpassing FactSet's estimate of $5.92 [3].

The company also announced plans to eliminate one-third of its prior authorization requirements by 2026, aiming to streamline the process. Additionally, Humana raised its annual profit forecast, updating its full-year 2025 GAAP EPS guidance to 'approximately $13.77' from the previous estimate of 'approximately $14.68'. The adjusted EPS guidance was increased to 'approximately $17.00', up from the previous 'approximately $16.25' guidance. Revenue guidance was also raised to 'at least $128 billion', compared to the previous guidance range of $126 billion to $128 billion [3].

For the second quarter, the Zacks Consensus Estimate for Humana's earnings was $6.32 per share, with revenues of $31.78 billion. The consensus estimate indicated a year-over-year decrease of 9.2% in earnings, but a 8.2% increase in revenues [1][2]. Humana has consistently beaten earnings estimates over the past four quarters, with an average surprise of 14.3% [1][2].

The company's insurance segment benefit ratio of 89.9% for the second quarter was in line with its previously disclosed expectation of 'approximately 90 percent' [3]. The company also affirmed its full-year 2025 Insurance segment benefit ratio guidance range of 90.1 percent to 90.5 percent [3].

References:
[1] https://finance.yahoo.com/news/humana-beat-q2-earnings-estimates-152600292.html
[2] https://www.nasdaq.com/articles/can-humana-beat-q2-earnings-estimates-insurance-unit-strength
[3] https://finance.yahoo.com/news/humana-reports-second-quarter-2025-100000490.html