Humana’s third quarter results were well received by the market, with management pointing to strong execution across Medicare Advantage and ongoing progress in operational transformation. CEO Jim Rechtin highlighted that both new and existing member performance was meeting or exceeding internal benchmarks, while retention of members affected by plan exits was particularly robust. On the call, Rechtin attributed membership gains to better product positioning and enhanced partnerships with distribution channels, emphasizing, “our recapture or retention of our members impacted by plan exits has been particularly strong.”
Is now the time to buy HUM? Find out in our full research report (it’s free for active Edge members).
Humana (HUM) Q3 2026 highlights:
- Revenue $41.16 billion vs S&P analyst consensus of $40.88 billion (26.1% year-on-year growth, 0.7% beat)
- Adjusted EPS -$0.70 vs S&P analyst consensus of -$1.00 (30.3% beat)
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $9.50 at the midpoint, a 5.6% increase
- Operating margin 0.2%, down from 1.2% in the same quarter last year
- Customers 18.04 million, up from 17.91 million in the previous quarter
- Market capitalization $52.09 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Humana’s Q3 earnings call
- Stephen Baxter (Wells Fargo) asked about headwinds and tailwinds for 2027. CFO Celeste Mellet replied that no new headwinds are currently anticipated beyond Stars, and several transformation tailwinds should support margin improvement.
- Justin Lake (Wolfe Research) questioned cost trend expectations and CenterWell pressures. Mellet explained that cost trends remain favorable in 2026, but are expected to rise in 2027, mainly due to health technology pipeline costs, with CenterWell’s issues largely contained to one geography.
- Ann Hynes (Mizuho) inquired about 2027 Medicare Advantage membership growth and the competitive environment. CEO Jim Rechtin stated that improved broker partnerships are driving better-than-expected sales, but final retention data is still pending.
- David Windley (Jefferies) pressed for details on margin improvement sources. Rechtin and Mellet clarified that pricing for margin and ongoing operational transformation are key, with Stars providing an additional but not exclusive benefit.
- Scott Fidel (Goldman Sachs) asked about reinsurance strategy in Medicare Advantage. Mellet noted that increased use of reinsurance has improved capital efficiency and is expected to remain stable for the next few years.
Catalysts in upcoming quarters
Looking ahead, our analysts will be monitoring (1) Humana’s ability to sustain Medicare Advantage margin improvements as new pricing and benefit design strategies take effect, (2) the impact of operational transformation on both medical and operating costs, and (3) how Medicaid and CenterWell Primary Care expansion contribute to overall earnings growth. Updates on the scale and use of the anticipated Stars tailwind will also be important milestones.
Humana currently trades at $432.87, up from $411.88 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free).
Our favorite stocks right now
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
