01—Abstract
Summary
Summary of the 8-K filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Humana Inc. reported first-quarter 2026 GAAP diluted EPS of $9.83a, compared with $10.30 in 1Q25, and Adjusted (non-GAAP) EPS of $10.31, compared with $11.58.
Revenues rose to $39,648 millionb from $32,112 million, while GAAP pretax results fell to $1,595 million from $1,691 million. The consolidated benefit ratio increased to 89.4 percent from 87.0 percent, which the company attributes mainly to the Bonus Year 2026 Star Ratings revenue headwind, growth in individual Medicare Advantage membership, and lower favorable prior period development ($389 million in 1Q26 versus $477 million in 1Q25). The consolidated operating cost ratio improved to 10.2 percent from 10.6 percent on a GAAP basis.
Operating cash flows were $1,254 millionc, compared with $331 million a year earlier. Humana revised its FY 2026 GAAP EPS guidance to 'at least $8.36' from 'at least $8.89' and affirmed Adjusted EPS guidance of 'at least $9.00'. The company also affirmed an Insurance segment benefit ratio guidance of 92.75 percent, plus or minus 25 basis points, and expects individual Medicare Advantage membership growth of approximately 25 percent.
Management said second-quarter earnings are expected to be approximately 80 to 85 percent of expected FY 2026 Adjusted earnings, with a second-quarter Insurance benefit ratio slightly above 91 percent. Debt-to-total capitalization rose to 43.0 percent from 41.1 percent at December 31, 2025, reflecting a $1.0 billiond public offering announced in March 2026. Leadership changes were also announced.
George Renaudin, Insurance Segment President, will retire effective June 29, 2026, and Aaron Martin will lead day-to-day Insurance Segment management until then and formally assume the role upon Renaudin's retirement. John Barger will begin leading Medicare Advantage operations immediately.
02—Key points
Key Highlights
- 1Q26 GAAP diluted EPS was $9.83 versus $10.30 in 1Q25; Adjusted EPS was $10.31 versus $11.58, described as at the high end of the company's guidance of approximately 110 to 115 percent of FY 2026 Adjusted EPS.
- FY 2026 GAAP EPS guidance was revised to 'at least $8.36' from 'at least $8.89', while Adjusted EPS guidance of 'at least $9.00' was affirmed; the Adjusted outlook reflects a year-over-year decline due to the BY 2026 Star Ratings headwind, net of mitigation.
- Consolidated benefit ratio rose to 89.4 percent from 87.0 percent, while the Insurance segment benefit ratio was 89.4 percent, described as slightly favorable to guidance of 'just under 90 percent'.
- Revenues increased to $39,648 million from $32,112 million, driven by Medicare membership growth and higher per member premiums, partially offset by the BY 2026 Star Ratings headwind.
- Individual Medicare Advantage membership was 6,393.3 thousand at March 31, 2026, up from 5,215.8 thousand a year earlier; FY 2026 growth of approximately 25 percent was affirmed.
- Debt-to-total capitalization was 43.0 percent at March 31, 2026, up from 41.1 percent at December 31, 2025, following a $1.0 billion public offering announced in March 2026.
- Insurance leadership transition: George Renaudin retires June 29, 2026; Aaron Martin will assume the Insurance Segment President role, and John Barger began leading Medicare Advantage operations effective immediately.
03—Questions
Frequently Asked Questions
Why did Humana revise its GAAP EPS guidance while affirming Adjusted EPS guidance?
The filing revises FY 2026 GAAP EPS guidance to 'at least $8.36' from 'at least $8.89' and affirms Adjusted EPS guidance of 'at least $9.00'. The FY 2026 guidance table shows adjustments for amortization, put/call valuation adjustments, value creation initiatives, and cumulative net tax impact. The filing does not give a single explicit reason for the GAAP revision beyond these reconciling items.
What drove the increase in the benefit ratio?
The consolidated GAAP benefit ratio increased to 89.4 percent from 87.0 percent. The company cited the BY 2026 Star Ratings revenue headwind, the effect of individual MA membership growth in the most recent AEP and OEP (new members on average run at a higher benefit ratio), and lower favorable prior period development ($389 million in 1Q26 versus $477 million in 1Q25). Partial offsets included 2026 individual MA pricing and the benefit of group MA recontracting.
How did CenterWell perform in the quarter?
CenterWell segment revenues were $6,100 million versus $5,095 million in 1Q25. Segment income from operations was $289 million versus $392 million, and the operating cost ratio was 94.5 percent versus 91.1 percent. The company cited the final year of the v28 phase-in, timing impacts, higher CenterWell Specialty Pharmacy volume, The Villages Health acquisition, and MaxHealth transaction and integration costs. Primary care patients grew by 110,500 to 601,600 in the quarter.
What is expected for the second quarter and the balance sheet going forward?
Management expects second-quarter earnings to be approximately 80 to 85 percent of expected FY 2026 Adjusted earnings, with a second-quarter Insurance segment benefit ratio slightly above 91 percent. On capital, the company cited a $1 billion Junior Subordinated Notes offering completed in March 2026 expected to fund 2027 maturities, maintained its dividend flat per share, and reported $111 million of parent company cash and short-term investments at March 31, 2026 versus $1,234 million a year earlier. Debt-to-total capitalization is above its long-term target of approximately 40 percent.
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