01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Humana Inc. (NYSE: HUM), headquartered in Louisville, Kentucky, reported net income of $1.2 billiona, or $9.84 per diluted common share, for 2025, compared with $1.2 billion, or $9.98 per diluted share, in 2024.
Total revenues rose to $129.66 billionb from $117.76 billion, driven by a $10.72 billion increase in insurance premiums to $122.83 billion. Results were significantly affected by put/call valuation adjustments on non-consolidating minority interests ($513 million), value creation initiative charges ($449 million), impairment charges ($253 million), a loss on sale of business ($67 million) and settlement of certain litigation expenses ($15 million). The company also finalized its exit from the Employer Group Commercial Medical Products business during 2025.
Operating cash flow fell to $921 millionc from $2.97 billion, reflecting timing impacts including higher receivables tied to the Inflation Reduction Act. Cash and cash equivalents rose to $4.20 billion at year-end. Individual Medicare Advantage membership declined 7.3% to 5,249,300 as the company exited unprofitable plans and counties, while Medicare stand-alone PDP membership grew 7.6% to 2,462,600 and state-based contracts grew 10.7% to 1,615,600.
The filing states that for 2026 the company anticipates net membership growth of approximately 25%d in individual Medicare Advantage, approximately 1,000,000 in stand-alone PDP, and approximately 150,000 in group Medicare Advantage. Government programs represented approximately 93% of total premiums and services revenue, and 83% of revenue came from federal contracts. The filing discloses an ongoing lawsuit over 2025 Star Ratings, now on appeal at the Fifth Circuit, and a lawsuit over the Final RADV Rule, which the district court vacated in September 2025 and which the government has appealed.
At year-end, benefits payable were $9.97 billion, the investment portfolio totaled $16.2 billion of debt securities with a weighted average rating of AA-, and the senior notes carried a BBB (S&P) and Baa2 (Moody's) rating. The company completed an acquisition of a primary care business for approximately $941 million on February 13, 2026, and the remaining repurchase authorization was $2.7 billion as of February 18, 2026.
02—Key points
Key Highlights
- Total revenues of $129.66 billion in 2025, up from $117.76 billion in 2024, with insurance premiums of $122.83 billion.
- Diluted earnings per share of $9.84 in 2025 versus $9.98 in 2024; net income attributable to Humana was $1.19 billion versus $1.21 billion.
- Earnings were significantly affected by $513 million of put/call valuation adjustments, $449 million of value creation initiative charges, $253 million of impairment charges, and a $67 million loss on sale of business.
- Operating cash flow fell to $921 million in 2025 from $2.97 billion in 2024, primarily reflecting timing impacts including receivables related to the Inflation Reduction Act.
- Individual Medicare Advantage membership declined 7.3% to 5,249,300 after exiting certain unprofitable plans and counties, while Medicare stand-alone PDP membership grew 7.6%.
- The company expects 2026 net membership growth of approximately 1,000,000 in stand-alone PDP and approximately 150,000 in group Medicare Advantage.
- Pending litigation includes an appeal of the 2025 Star Ratings decision and an appeal of the vacatur of the Final RADV Rule at the Fifth Circuit.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $129.66B$117.76B | +10.1% |
| SG&A Expenses | $15.45B$13.70B | +12.8% |
| Operating Income | $2.70B$2.56B | +5.5% |
| Net Income | $1.19B$1.21B | −1.6% |
| EPS (Basic) | $9.87$10.01 | −1.4% |
| EPS (Diluted) | $9.84$9.98 | −1.4% |
| Shares Outstanding (Basic) | 120.45M120.57M | −0.1% |
| Shares Outstanding (Diluted) | 120.83M120.87M | 0.0% |
05—Questions
Frequently Asked Questions
How did Humana's profitability change in 2025?
Net income was $1.20 billion in 2025 versus $1.21 billion in 2024, and diluted EPS was $9.84 versus $9.98. The filing notes that the comparison was significantly affected by put/call valuation adjustments, value creation initiative charges, impairment charges, a loss on sale of business and litigation settlement expenses. Excluding these items, the company's diluted EPS impact table shows a total of $7.38 for 2025 versus $4.93 for 2024.
What is the status of the company's exposure to Medicare Advantage Star Ratings?
The filing states that the number of Medicare Advantage plans rated 4-star or higher significantly declined in 2025. Humana filed a lawsuit seeking to set aside the 2025 Star Ratings, and on October 14, 2025 the court rejected the challenge. The company appealed on November 25, 2025, and the appeal is pending at the Fifth Circuit. The filing states the decline will negatively affect 2026 quality bonus payments from CMS if the company is not successful.
How concentrated is Humana's revenue in government programs?
The filing states that 83% of total premiums and services revenue in 2025 came from contracts with the federal government, and that Medicare, military services and Medicaid programs together accounted for approximately 93% of total premiums and services revenue. The Florida individual Medicare Advantage contracts accounted for approximately 14% of total premiums and services revenue.
What are the company's capital return and liquidity positions?
Dividends paid totaled $430 million in 2025, with a quarterly dividend of $0.8850 per share declared in February 2026. Share repurchases totaled $151 million in 2025, and the remaining repurchase authorization was $2.7 billion as of February 18, 2026. Cash and cash equivalents were $4.20 billion at year-end 2025, and the company had $4.99 billion of remaining borrowing capacity under its credit agreement.
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