01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Humana Inc. reported net income attributable to Humana of $694 milliona, or $5.73 per diluted common share, for the three months ended June 30, 2026, compared with $545 million, or $4.51 per diluted share, in the 2025 quarter.
For the six months, net income attributable to Humana was $1,880 millionb, or $15.55 per diluted share, versus $1,789 million, or $14.81 per diluted share, a year earlier. Total revenues rose to $40.87 billion in the quarter from $32.39 billion, driven mainly by premiums revenue of $38.83 billion, up from $30.72 billion, reflecting Medicare membership growth. The benefit ratio increased to 91.1% from 89.7% in the quarter, which management attributes to the BY 2026 Star Ratings revenue headwind and higher-cost new individual Medicare Advantage members, partly offset by pricing and clinical efforts.
Medicare membership expanded sharply, with total Medicare membership of 11,127,300 at June 30, 2026, up 35.3% from a year earlier, led by stand-alone PDP growth of 62.6%. Total medical membership reached 17,912,200. Balance sheet changes include total assets of $57.20 billionc, benefits payable of $12.88 billion, and short-term debt of $2.27 billion, including $1.32 billion of commercial paper.
Cash and cash equivalents rose to $6.89 billiond from $4.20 billion at year-end, supported by operating cash flow of $3.22 billion, which the filing says benefited from the timing of a $1.05 billion Medicaid state-directed payment that settled shortly after June 30, 2026. The company also acquired MaxHealth for approximately $908 million net of cash acquired and issued $1.0 billion of 6.625% junior subordinated notes due 2056. The filing highlights ongoing legal and regulatory matters, including the Final RADV Rule litigation, now on appeal at the Fifth Circuit after the court vacated the rule, a Star Ratings challenge also pending on appeal, a securities class action, and a DOJ False Claims Act complaint.
The company states that it cannot estimate losses in excess of accruals for these matters. Remaining share repurchase authorization was $2.7 billion as of July 28, 2026.
02—Key points
Key Highlights
- Net income attributable to Humana was $694 million ($5.73 diluted EPS) for Q2 2026, up from $545 million ($4.51) in Q2 2025.
- Total revenues were $40.87 billion for the quarter, versus $32.39 billion a year earlier; premiums revenue was $38.83 billion.
- The consolidated benefit ratio rose to 91.1% from 89.7%, reflecting the BY 2026 Star Ratings revenue headwind and new higher-cost MA members.
- Individual Medicare Advantage membership reached 6,453,700 (up 23.4%), and stand-alone PDP membership reached 3,946,400 (up 62.6%).
- Cash and cash equivalents increased to $6.89 billion from $4.20 billion at December 31, 2025, aided by a $1.05 billion Medicaid state-directed payment that settled shortly after June 30, 2026.
- Humana acquired MaxHealth for approximately $908 million net of cash acquired and issued $1.0 billion of 6.625% junior subordinated notes due 2056.
- The Final RADV Rule was vacated by the district court and is on appeal to the Fifth Circuit; the filing says the outcome could have a material adverse effect if it is not resolved in Humana's favor.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $40.87B$32.39B | +26.2% |
| SG&A Expenses | $3.98B$3.55B | +12.2% |
| Operating Income | $1.36B$1.10B | +23.9% |
| Net Income | $694.00M$545.00M | +27.3% |
| EPS (Basic) | $5.78$4.52 | +27.9% |
| EPS (Diluted) | $5.73$4.51 | +27.1% |
| Shares Outstanding (Basic) | 120.07M120.54M | −0.4% |
| Shares Outstanding (Diluted) | 121.14M120.75M | +0.3% |
05—Questions
Frequently Asked Questions
How did Humana's profitability change in the second quarter of 2026?
Net income attributable to Humana rose to $694 million, or $5.73 per diluted share, from $545 million, or $4.51 per diluted share, in the 2025 quarter. The filing attributes comparisons partly to put/call valuation adjustments, impairment charges, and value creation initiative charges, which contributed $1.83 per diluted share in the 2026 quarter.
Why did the benefit ratio increase?
The consolidated benefit ratio increased to 91.1% from 89.7%. The filing primarily attributes this to the BY 2026 Star Ratings revenue headwind, the effect of individual MA membership growth from the most recent enrollment periods, since new members run at a higher benefit ratio, and lower expected favorable prior-period reserve development. Favorable prior-period development was $53 million in the 2026 quarter versus $161 million in the 2025 quarter.
What drove the growth in revenue and membership?
Premiums revenue rose $8.1 billion, or 26.4%, in the quarter, reflecting Medicare membership growth, higher per-member MA and PDP premiums from increased CMS MA benchmark funding, and a higher Part D direct subsidy under the Inflation Reduction Act. Total Medicare membership grew 35.3% year over year to 11,127,300.
How is Humana's liquidity and debt position?
Cash and cash equivalents were $6.89 billion at June 30, 2026, and total debt carrying value was about $14.2 billion, including $2.27 billion of short-term debt. The filing states that the revolving credit agreement has $5.0 billion of remaining borrowing capacity and that Humana believes its resources are adequate for at least the next twelve months. The Q2 cash position was also influenced by the timing of a $1.05 billion Medicaid state-directed payment that settled shortly after June 30, 2026.
What are the main legal and regulatory risks disclosed?
The filing discusses the Final RADV Rule, which the district court vacated in September 2025 and which the government has appealed to the Fifth Circuit. It also describes a Star Ratings lawsuit on appeal, a federal securities class action, a DOJ complaint in partial intervention under the False Claims Act, and a TCPA class action. The company states that it cannot predict the outcomes and that it cannot estimate losses above amounts accrued.
06—Continue