n e w sr e l e a s e 101 East Main Street
Exhibit 99.1 Humana Inc. n e w sr e l e a s e 101 East Main Street P.O. Box 1438 Louisville, KY 40202 http://www.humana.com
Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail: LStamper@humana.com
Reports 3Q26 earnings per share (EPS) of $1.33 on a GAAP basis, Adjusted loss per share of $0.70; reports year to date (YTD) 2026 EPS of $16.84 on a GAAP basis, $17.17 on an Adjusted basis • 3Q26 Insurance segment GAAP benefit ratio of 93.7 percent, favorable to management's guidance of 'slightly above 94 percent'
• Raises FY 2026 Adjusted EPS guidance to now be 'at least $9.50', up from the previous expectation of 'at least $9.00'; while revising GAAP EPS guidance to 'at least $15.09', up from the previous estimate of 'at least $6.52'
• Continued strategic expansion of the company's CenterWell and Medicaid footprints
◦ YTD growth of 146,800 patients, or 30 percent, in CenterWell Senior Primary Care
◦ Recently announced joint venture (JV) with BlackRock replaced the previous JVs with Welsh, Carson, Anderson & Stowe, enhancing balance sheet efficiency and providing greater financial flexibility at a reduced cost of capital, while also funding future growth
◦ YTD Medicaid membership growth of 103,600, or 7 percent, largely driven by the start of integrated Duals programs in Michigan, Illinois, and South Carolina
• Publishes prepared management remarks to Investor Relations page of www.humana.com ahead of this morning's 8:00 a.m. ET question and answer session to discuss its financial results for the quarter and expectations for future earnings
– Humana Inc. (NYSE: HUM) today reported consolidated pretax results and diluted earnings per share for the quarter ended September 30, 2026 (3Q26) versus the quarter ended September 30, 2025 (3Q25) and for the nine months ended September 30, 2026 (YTD 2026) versus the nine months ended September 30, 2025 (YTD 2025) as noted in the tables below. 1
Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations. Please refer to the tables above, as well as the consolidated and segment highlight sections in the detailed earnings release for additional discussion of the factors impacting the year-over-year quarterly and YTD comparisons.
"Humana is delivering positive results for our members, our patients and their health," said Humana President and CEO Jim Rechtin. "We are also increasingly driving financial and operating performance toward being 'ahead' of our plan."
Humana revises its GAAP EPS guidance for the year ending December 31, 2026 (FY 2026) to 'at least $15.09' from 'at least $6.52', while raising its Adjusted EPS guidance to 'at least $9.50' from the previous guidance of 'at least $9.00'. The FY 2026 Adjusted EPS guidance anticipates a year-over-year decline as a result of the Star Ratings headwind for Bonus Year (BY) 2026, net of mitigation. 2
Diluted earnings per FY 2026 FY 2025 share (a) Guidance GAAP at least $15.09 $9.84 Amortization associated with 0.31 0.42 identifiable intangibles Put/call valuation adjustments associated with the company's -11.42 4.25 non-consolidating minority interest investments (c) Value creation 1.48 3.72 initiatives (d) Impairment charges (d) 0.20 2.09 Initial option liability associated with recently announced strategic joint 2.14 — venture with HPS Investment Partners (BlackRock) and CenterWell Senior Primary Care (e) Impact of exit of employer group — -0.52 commercial medical products business (d) Settlement of certain litigation — 0.13 expenses (d) Loss on sale of — 0.55 business (d) Cumulative net tax 1.70 -3.34 impact Adjusted (non-GAAP) – FY 2026 projected at least $9.50 $17.14 (d); FY 2025 reported
Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations.
Humana’s full earnings press release, including the statistical pages, has been posted to the company’s Investor Relations site and may be accessed at https://humana.gcs-web.com/ or via a current report on Form 8-K filed by the company with the Securities and Exchange Commission this morning (available at www.sec.gov or on the company’s website).
Humana will host a live question-and-answer session for analysts at 8:00 a.m. Eastern time today to discuss its financial results for the quarter and the company’s expectations for future earnings. In advance of the question-and- answer session, Humana will post prepared management remarks to the Quarterly Results section of its Investor Relations page (https://humana.gcs- web.com/financial-information/quarterly-results). A webcast of the 3Q26 earnings call may be accessed via Humana’s Investor Relations page at https://humana.gcs-web.com/.
If you anticipate asking a question during the question-and-answer session, please register in advance at this link - https://register-conf.media- server.com/register/BIe96a47a3d2724a5baa1fa1210aa58a13. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID.
The company suggests participants listening via the web or the conference call sign in or dial in at least 15 minutes in advance of the call. For those unable to participate in the live event, the virtual presentation archive will be available in the Historical Webcasts and Presentations section of the Investor Relations page at https://humana.gcs-web.com/, approximately two hours following the live webcast.
The company has included financial measures throughout this earnings release that are not in accordance with GAAP. Management believes that these measures, when presented in conjunction with the corresponding GAAP measures, provide a comprehensive perspective to more accurately compare and analyze the company’s core operating performance over time. Consequently, management uses these non- GAAP (Adjusted) financial measures as consistent indicators of the company’s core business operations from period to period, as well as for planning and decision-making purposes and in determination of incentive compensation. Non- GAAP (Adjusted) financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in 3 accordance with GAAP. The company’s non-GAAP measures are not intended to normalize earnings, eliminate volatility, or represent future performance. Non- GAAP measures are subject to inherent limitations and may differ from similarly titled measures used by other companies . All financial measures in this earnings release are in accordance with GAAP unless otherwise indicated. Please refer to the footnotes for a detailed description of each item adjusted out of GAAP financial measures to arrive at non-GAAP (Adjusted) financial measures.
(a) For the periods covered in this earnings release, the following items are excluded from the non-GAAP financial measures described above, as applicable.
• Amortization associated with identifiable intangibles - Since amortization varies based on the size and timing of acquisition activity, management believes the exclusion of this non-cash expense provides a more consistent and uniform indicator of performance from period to period. For all periods shown within this earnings release, GAAP measures affected include consolidated pretax results, EPS, and Insurance and CenterWell segments' (loss) income from operations. The table below discloses respective period amortization expense for each segment:
Amortization 3Q26 3Q25 YTD 2026 YTD 2025 (in millions) Insurance segment $4 $4 $12 $13 CenterWell segment $6 $9 $17 $30
• Put/call valuation adjustments associated with the company’s non-consolidating minority interest investments - These non-cash amounts are the result of fair value measurements associated with the company's primary care strategic partnership and are unrelated to the company's core business performance. For all periods shown within this earnings release, GAAP measures affected include consolidated pretax results and EPS. •
These charges relate to the company's multi-year transformation program, as approved by management with defined scope and milestones. The intent of the program is to re-align the company’s cost structure, operating model, and technology footprint with evolving market conditions. These costs primarily include severance and associate exit costs, asset impairments, and external consulting expenses incurred to execute the program. These charges were recorded at the corporate level and not allocated to the segments. The company has consistently applied this adjustment across all periods. For all periods shown within this earnings release, GAAP measures affected include consolidated pretax results, EPS, and the consolidated operating cost ratio.
During 2026, the company recognized non-cash impairment charges related to investments for which the company held minority ownership interests that were deemed to be unrecoverable based on recent market activity. In YTD 2025, the company recognized non-cash impairment charges related to certain indefinite- lived intangible assets based on the company's estimate of future financial performance in certain state markets. These charges were recorded at the corporate level and not allocated to the segments. For 3Q26 and YTD 2026, GAAP measures affected include consolidated pretax results, EPS, and consolidated revenues. For YTD 2025, GAAP measures affected included consolidated pretax results, EPS, and the consolidated operating cost ratio.
Impact of exit of employer group commercial medical products business - These amounts relate to activity from the exit of the employer group commercial medical products business as announced by Humana on February 23, 2023. For 3Q25 and YTD 2025, GAAP measures affected include consolidated pretax results and EPS.
- These charges relate to expenses the company recognized in connection with a discrete legal matter. The nature and magnitude of this settlement are not indicative of the company’s ongoing operations. For 3Q25 and YTD 2025, GAAP measures affected in this release include consolidated pretax results, EPS, the consolidated and Insurance segment operating costs ratios, and Insurance segment income from operations.
This discrete disposition is not part of the company's ordinary course operations and the impacts recognized from the disposal do not reflect core operational performance. The loss primarily reflects the difference between the carrying value and proceeds at the time of sale. For 3Q25 and YTD 2025, GAAP measures affected in this release include consolidated pretax results and EPS.
This adjustment represents the cumulative net impact of the corresponding tax benefit or expense at the applicable marginal rate related to the aforementioned items excluded from the applicable GAAP measures. For FY 2025, the tax adjustment reflects the impact of the loss on sale of business, which exceeded the book loss. The related tax benefit from the loss on sale of business is realizable via capital loss carryback. The tax impact of the aforementioned items differs from the statutory rates due to jurisdictional mix, limitations on deductibility, and other factors. The cumulative tax impact is not intended to represent a normalized effective tax rate or expected future tax outcomes. For all periods presented in this earnings release, EPS is the sole GAAP measure affected. 4 In addition to the reconciliations shown on page 2 of this release, the following are reconciliations of GAAP to Adjusted (non-GAAP) measures described above and disclosed within this earnings release:
(b) 3Q26 GAAP to Adjusted (non-GAAP) EPS reconciliation will not foot due to a ($0.01) impact resulting from the use of common shares to calculate the Adjusted loss per share versus the use of diluted weighted-average shares in the calculation of GAAP EPS.
(c) Includes the noncash reversal of the net put liability of approximately $1.2 billion reflected in the company's September 30, 2026 balance sheet; the put was associated with CenterWell Senior Primary Care's previous joint ventures with Welsh, Carson, Anderson & Stowe.
(d) FY 2026 GAAP EPS guidance and FY 2026 Adjusted (non-GAAP) EPS guidance exclude the impact of future value changes to items that have not yet been recognized and cannot currently be reasonably estimated at this time. The company does not expect changes to its FY 2026 Adjusted (non-GAAP) EPS guidance. The company does expect potential changes to its FY 2026 GAAP EPS guidance due to its ongoing value creation and other strategic initiatives. 5 e) Reflects the new initial option liability associated with the company's recently announced non-consolidating strategic joint venture with HPS Investment Partners, a subsidiary of BlackRock and CenterWell Senior Primary Care; this noncash impact is expected to be recorded in the fourth quarter of 2026. Management excludes the initial recognition because it results from the transaction’s ownership and option structure, and it is not considered in management’s evaluation of core operating results.
This news release includes forward-looking statements regarding Humana within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “assumes,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following:
• If Humana does not design and price its products properly and competitively, if the premiums Humana receives are insufficient to cover the cost of healthcare services delivered to its members, if the company is unable to implement clinical initiatives to provide a better healthcare experience for its members, lower costs and appropriately document the risk profile of its members, or if its estimates of benefits expense are inadequate, Humana’s profitability could be materially adversely affected. Humana estimates the costs of its benefit expense payments, and designs and prices its products accordingly, using actuarial methods and assumptions based upon, among other relevant factors, claim payment patterns, medical cost inflation, and historical developments such as claim inventory levels and claim receipt patterns. The company continually reviews estimates of future payments relating to benefit expenses for services incurred in the current and prior periods and makes necessary adjustments to its reserves, including premium deficiency reserves, where appropriate. These estimates involve extensive judgment, and have considerable inherent variability because they are extremely sensitive to changes in claim payment patterns and medical cost trends. Accordingly, Humana's reserves may be insufficient.
• If Humana fails to effectively implement its operational and strategic initiatives, including its Medicare initiatives, which are of particular importance given the concentration of the company's revenues in these products, state-based contract strategy, the growth of its CenterWell business, and its integrated care delivery model, the company’s business may be materially adversely affected.
• The number of Humana’s Medicare Advantage plans rated 4-star or higher significantly declined in 2025. Humana filed a lawsuit seeking to set aside and vacate the 2025 Star Ratings of its Medicare Advantage plans, and on October 14, 2025, the Court issued a decision rejecting Humana's challenge. Although the company has appealed that decision, there can be no assurances that it will ultimately prevail in the lawsuit. If the company is not successful, the decline in Star Ratings will negatively impact its 2026 quality bonus payments from CMS and may also significantly adversely affect the company’s revenues, operating results, and cash flows. In addition, there can be no assurances the company will be successful in maintaining or improving its Star Ratings in future years.
• If Humana, or the third-party service providers on which it relies, fails to properly maintain the integrity of its data, to strategically maintain existing or implement new information systems (including systems powered by or incorporating artificial intelligence (AI) or machine learning (ML)), or to protect Humana’s proprietary rights to its systems, or to defend against cyber- security attacks, contain such attacks when they occur, or prevent other privacy or data security incidents that result in security breaches that disrupt the company's operations or in the unintentional dissemination of sensitive personal information or proprietary or confidential information, the company’s business may be materially adversely affected.
• Humana is involved in various legal actions, or disputes that could lead to legal actions (such as, among other things, provider contract disputes and qui tam litigation brought by individuals on behalf of the government), governmental and internal investigations, and routine internal review of business processes any of which, if resolved unfavorably to the company, could result in substantial monetary damages or 6 changes in its business practices. Increased litigation and negative publicity could also increase the company’s cost of doing business.
• As a government contractor, Humana is exposed to risks that may materially adversely affect its business or its willingness or ability to participate in government healthcare programs including, among other things, loss of material government contracts; governmental audits and investigations; potential inadequacy of government determined payment rates; potential restrictions on profitability, including by comparison of profitability of the company’s Medicare Advantage business to non-Medicare Advantage business; or other changes in the governmental programs in which Humana participates. Changes to the risk- adjustment model utilized by CMS to adjust premiums paid to Medicare Advantage plans or retrospective recovery by CMS of previously paid premiums as a result of the final rule related to the risk adjustment data validation audit methodology published by CMS on January 30, 2023 (Final RADV Rule), which Humana believes fails to address adequately the statutory requirement of actuarial equivalence and violates the Administrative Procedure Act due to its failure to include a "Fee for Service Adjuster" could have a material adverse effect on the company's operating results, financial position and cash flows.
• Humana's business activities are subject to substantial government regulation. New laws or regulations, or legislative, judicial, or regulatory changes in existing laws or regulations or their manner of application could increase the company's cost of doing business and have a material adverse effect on Humana’s results of operations (including restricting revenue, enrollment and premium growth in certain products and market segments, restricting the company’s ability to expand into new markets, increasing the company’s medical and operating costs by, among other things, requiring a minimum benefit ratio on insured products, lowering the company’s Medicare payment rates and increasing the company’s expenses associated with a non-deductible health insurance industry fee and other assessments); the company’s financial position (including the company’s ability to maintain the value of its goodwill); and the company’s cash flows.
• Humana’s failure to manage acquisitions, divestitures and other significant transactions successfully may have a material adverse effect on the company’s results of operations, financial position, and cash flows.
• If Humana fails to develop and maintain satisfactory relationships with the providers of care to its members, the company’s business may be adversely affected.
• Humana faces significant competition in attracting and retaining talented employees. Further, managing succession for, and retention of, key executives is critical to the Company’s success, and its failure to do so could adversely affect the Company’s businesses, operating results and/or future performance.
• Humana’s pharmacy business is highly competitive and subjects it to regulations and supply chain risks in addition to those the company faces with its core health benefits businesses.
• Changes in the prescription drug industry pricing benchmarks may adversely affect Humana’s financial performance.
• Humana’s ability to obtain funds from certain of its licensed subsidiaries is restricted by state insurance regulations.
• Downgrades in Humana’s debt ratings, should they occur, may adversely affect its business, results of operations, and financial condition.
• Volatility or disruption in the securities and credit markets may significantly and adversely affect the value of our investment portfolio and the investment income that we derive from this portfolio.
In making forward-looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward- looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward-looking statements. Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:
• Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026; and 7 • Form 8-Ks filed during 2026.
Humana (NYSE: HUM) is a leading U.S. healthcare company. Through our Humana insurance services and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare and Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com. 8
Full text with the tables
Exhibit 99.1
Humana Inc.
n e w sr e l e a s e 101 East Main Street
P.O. Box 1438
Louisville, KY 40202
http://www.humana.com
FOR MORE INFORMATION CONTACT:
Lisa Stoner
Humana Investor Relations
(502) 580-2652
e-mail: LStamper@humana.com
Mark Taylor
Humana Corporate Communications
(317) 753-0345
e-mail: MTaylor108@humana.com
Humana Reports Third Quarter 2026 Financial Results;
Raises
Full Year 2026 Adjusted
EPS Guidance
•
Reports 3Q26 earnings per share (EPS) of $1.33 on a GAAP basis, Adjusted loss
per share of $0.70; reports year to date (YTD) 2026 EPS of $16.84 on a GAAP
basis, $17.17 on an Adjusted basis
• 3Q26 Insurance segment GAAP benefit ratio of 93.7 percent, favorable to
management's guidance of 'slightly above 94 percent'
• Raises FY 2026 Adjusted EPS guidance to now be 'at least $9.50', up from the
previous expectation of 'at least $9.00'; while revising GAAP EPS guidance to
'at least $15.09', up from the previous estimate of 'at least $6.52'
• Continued strategic expansion of the company's CenterWell and Medicaid
footprints
◦ YTD growth of 146,800 patients, or 30 percent, in CenterWell Senior Primary
Care
◦ Recently announced joint venture (JV) with BlackRock replaced the previous JVs
with Welsh, Carson, Anderson & Stowe, enhancing balance sheet efficiency and
providing greater financial flexibility at a reduced cost of capital, while also
funding future growth
◦ YTD Medicaid membership growth of 103,600, or 7 percent, largely driven by the
start of integrated Duals programs in Michigan, Illinois, and South Carolina
• Publishes prepared management remarks to Investor Relations page of
www.humana.com ahead of this morning's 8:00 a.m. ET question and answer session
to discuss its financial results for the quarter and expectations for future
earnings
LOUISVILLE, KY (November 6, 2026)
– Humana Inc. (NYSE: HUM) today reported consolidated pretax results and diluted
earnings per share for the quarter ended September 30, 2026 (3Q26) versus the
quarter ended September 30, 2025 (3Q25) and for the nine months ended September
30, 2026 (YTD 2026) versus the nine months ended September 30, 2025 (YTD 2025)
as noted in the tables below.
1
Cons…
inco…
(los…
befo…
inco…
taxes YTD YTD
and 3Q26 3Q25 2026 2025
equi… (a) (a) (a) (a)
in
net
loss…
(pre…
resu…
mill…
Gene…
Acce…
Acco… $216 $134 $2,763 $2,566
Prin…
(GAA…
Amor…
asso…
with 10 13 29 43
iden…
inta…
Put/…
valu…
adju…
asso…
with -358 97 -181 460
comp…
non-…
mino…
inte…
inve…
Value
crea… 25 267 179 320
init…
Impa… 3 — 24 32
char…
Impa…
of
exit
of
empl… — -62 — -62
group
comm…
medi…
prod…
busi…
Sett…
of
cert… — 15 — 15
liti…
expe…
Loss
on
sale — 63 — 63
of
busi…
Adju… -$104 $527 $2,814 $3,437
(non…
EPS 3Q26 YTD YTD
(loss (a) 3Q25 2026 2025
per (b) (a) (a) (a)
shar…
GAAP $1.33 $1.62 $16.84 $16.43
Amor…
asso…
with 0.07 0.11 0.24 0.35
iden…
inta…
Put/…
valu…
adju…
asso…
with -2.94 0.80 -1.49 3.81
comp…
non-…
mino…
inte…
inve…
Value
crea… 0.21 2.21 1.48 2.65
init…
Impa… 0.03 — 0.20 0.27
char…
Impa…
of
exit
of
empl… — -0.52 — -0.52
group
comm…
medi…
prod…
busi…
Sett…
of
cert… — 0.13 — 0.13
liti…
expe…
Loss
on
sale — 0.52 — 0.52
of
busi…
Cumu…
net
tax
impa… 0.61 -1.63 -0.10 -2.54
of
non-…
adju…
Adju… -$0.70 $3.24 $17.17 $21.10
(non…
Refer to the "Footnotes" section included herein for further explanation of
disclosures for Adjusted (non-GAAP) financial measures, as well as
reconciliations.
Please refer to the tables above, as well as the consolidated and segment
highlight sections in the detailed earnings release for additional discussion of
the factors impacting the year-over-year quarterly and YTD comparisons.
"Humana is delivering positive results for our members, our patients and their
health," said Humana President and CEO Jim Rechtin. "We are also increasingly
driving financial and operating performance toward being 'ahead' of our plan."
FY 2026 Earnings Guidance
Humana revises its GAAP EPS guidance for the year ending December 31, 2026 (FY
2026) to 'at least $15.09' from 'at least $6.52', while raising its Adjusted EPS
guidance to 'at least $9.50' from the previous guidance of 'at least $9.00'. The
FY 2026 Adjusted EPS guidance anticipates a year-over-year decline as a result
of the Star Ratings headwind for Bonus Year (BY) 2026, net of mitigation.
2
Diluted earnings per FY 2026 FY 2025
share (a) Guidance
GAAP at least $15.09 $9.84
Amortization
associated with 0.31 0.42
identifiable
intangibles
Put/call valuation
adjustments
associated with the
company's -11.42 4.25
non-consolidating
minority interest
investments (c)
Value creation 1.48 3.72
initiatives (d)
Impairment charges (d) 0.20 2.09
Initial option
liability associated
with
recently announced
strategic joint 2.14 —
venture with HPS
Investment Partners
(BlackRock) and
CenterWell Senior
Primary Care (e)
Impact of exit of
employer group — -0.52
commercial medical
products business (d)
Settlement of certain
litigation — 0.13
expenses (d)
Loss on sale of — 0.55
business (d)
Cumulative net tax 1.70 -3.34
impact
Adjusted (non-GAAP) –
FY 2026 projected at least $9.50 $17.14
(d); FY 2025 reported
Refer to the "Footnotes" section included herein for further explanation of
disclosures for Adjusted (non-GAAP) financial measures, as well as
reconciliations.
Detailed Press Release
Humana’s full earnings press release, including the statistical pages, has been
posted to the company’s Investor Relations site and may be accessed at
https://humana.gcs-web.com/ or via a current report on Form 8-K filed by the
company with the Securities and Exchange Commission this morning (available at
www.sec.gov or on the company’s website).
Conference Call
Humana will host a live question-and-answer session for analysts at 8:00 a.m.
Eastern time today to discuss its financial results for the quarter and the
company’s expectations for future earnings. In advance of the question-and-
answer session, Humana will post prepared management remarks to the Quarterly
Results section of its Investor Relations page (https://humana.gcs-
web.com/financial-information/quarterly-results).
A webcast of the 3Q26 earnings call may be accessed via Humana’s Investor
Relations page at https://humana.gcs-web.com/.
If you anticipate asking a question during the question-and-answer session,
please register in advance at this link - https://register-conf.media-
server.com/register/BIe96a47a3d2724a5baa1fa1210aa58a13.
Upon registration, telephone participants will receive a confirmation email
detailing how to join the conference call, including the dial-in number and a
unique registrant ID.
The company suggests participants listening via the web or the conference call
sign in or dial in at least 15 minutes in advance of the call. For those unable
to participate in the live event, the virtual presentation archive will be
available in the Historical Webcasts and Presentations section of the Investor
Relations page at https://humana.gcs-web.com/, approximately two hours following
the live webcast.
Footnotes
The company has included financial measures throughout this earnings release
that are not in accordance with GAAP. Management believes that these measures,
when presented in conjunction with the corresponding GAAP measures, provide a
comprehensive perspective to more accurately compare and analyze the company’s
core operating performance over time. Consequently, management uses these non-
GAAP (Adjusted) financial measures as consistent indicators of the company’s
core business operations from period to period, as well as for planning and
decision-making purposes and in determination of incentive compensation. Non-
GAAP (Adjusted) financial measures should be considered in addition to, but not
as a substitute for, or superior to, financial measures prepared in
3
accordance with GAAP. The company’s non-GAAP measures are not intended to
normalize earnings, eliminate volatility, or represent future performance. Non-
GAAP measures are subject to inherent limitations and may differ from similarly
titled measures used by other companies . All financial measures in this
earnings release are in accordance with GAAP unless otherwise indicated. Please
refer to the footnotes for a detailed description of each item adjusted out of
GAAP financial measures to arrive at non-GAAP (Adjusted) financial measures.
(a) For the periods covered in this earnings release, the following items are
excluded from the non-GAAP financial measures described above, as applicable.
• Amortization associated with identifiable intangibles - Since amortization
varies based on the size and timing of acquisition activity, management believes
the exclusion of this non-cash expense provides a more consistent and uniform
indicator of performance from period to period. For all periods shown within
this earnings release, GAAP measures affected include consolidated pretax
results, EPS, and Insurance and CenterWell segments' (loss) income from
operations. The table below discloses respective period amortization expense for
each segment:
Amortization 3Q26 3Q25 YTD 2026 YTD 2025
(in millions)
Insurance segment $4 $4 $12 $13
CenterWell segment $6 $9 $17 $30
• Put/call valuation adjustments associated with the company’s non-consolidating
minority interest investments - These non-cash amounts are the result of fair
value measurements associated with the company's primary care strategic
partnership and are unrelated to the company's core business performance. For
all periods shown within this earnings release, GAAP measures affected include
consolidated pretax results and EPS.
•
Value creation initiatives -
These charges relate to the company's multi-year transformation program, as
approved by management with defined scope and milestones. The intent of the
program is to re-align the company’s cost structure, operating model, and
technology footprint with evolving market conditions. These costs primarily
include severance and associate exit costs, asset impairments, and external
consulting expenses incurred to execute the program. These charges were recorded
at the corporate level and not allocated to the segments. The company has
consistently applied this adjustment across all periods. For all periods shown
within this earnings release, GAAP measures affected include consolidated pretax
results, EPS, and the consolidated operating cost ratio.
•
Impairment charges
-
During 2026, the company recognized non-cash impairment charges related to
investments for which the company held minority ownership interests that were
deemed to be unrecoverable based on recent market activity. In YTD 2025, the
company recognized non-cash impairment charges related to certain indefinite-
lived intangible assets based on the company's estimate of future financial
performance in certain state markets. These charges were recorded at the
corporate level and not allocated to the segments. For 3Q26 and YTD 2026, GAAP
measures affected include consolidated pretax results, EPS, and consolidated
revenues. For YTD 2025, GAAP measures affected included consolidated pretax
results, EPS, and the consolidated operating cost ratio.
•
Impact of exit of employer group commercial medical products business - These
amounts relate to activity from the exit of the employer group commercial
medical products business as announced by Humana on February 23, 2023. For 3Q25
and YTD 2025, GAAP measures affected include consolidated pretax results and
EPS.
•
Settlement of certain litigation expenses
- These charges relate to expenses the company recognized in connection with a
discrete legal matter. The nature and magnitude of this settlement are not
indicative of the company’s ongoing operations. For 3Q25 and YTD 2025, GAAP
measures affected in this release include consolidated pretax results, EPS, the
consolidated and Insurance segment operating costs ratios, and Insurance segment
income from operations.
•
Loss on sale of business -
This discrete disposition is not part of the company's ordinary course
operations and the impacts recognized from the disposal do not reflect core
operational performance. The loss primarily reflects the difference between the
carrying value and proceeds at the time of sale. For 3Q25 and YTD 2025, GAAP
measures affected in this release include consolidated pretax results and EPS.
•
Cumulative net tax impact -
This adjustment represents the cumulative net impact of the corresponding tax
benefit or expense at the applicable marginal rate related to the aforementioned
items excluded from the applicable GAAP measures. For FY 2025, the tax
adjustment reflects the impact of the loss on sale of business, which exceeded
the book loss. The related tax benefit from the loss on sale of business is
realizable via capital loss carryback. The tax impact of the aforementioned
items differs from the statutory rates due to jurisdictional mix, limitations on
deductibility, and other factors. The cumulative tax impact is not intended to
represent a normalized effective tax rate or expected future tax outcomes. For
all periods presented in this earnings release, EPS is the sole GAAP measure
affected.
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In addition to the reconciliations shown on page 2 of this release, the
following are reconciliations of GAAP to Adjusted (non-GAAP) measures described
above and disclosed within this earnings release:
Revenues
CON…
Rev… 3Q26 3Q25 YTD YTD
(in 2026 2025
mil…
GAAP $41,… $32,6… $121,… $97,1…
Imp… 3 — 24 —
cha…
Adj… $41,… $32,6… $121,… $97,1…
(no…
Operating cost ratio
CONSOL…
Operat… 3Q26 3Q25 YTD 2026 YTD
cost 2025
ratio
GAAP 11.3 % 12.6 % 10.4 % 11.4 %
Value
creati… -0.1 % -0.8 % -0.1 % -0.3 %
initia…
Impair… — % — % — % — %
charges
Settle…
of
certain — % — % — % — %
litiga…
expens…
Adjust… 11.2 % 11.8 % 10.3 % 11.1 %
(non-G…
INSURANCE
SEGMENT
Operating 3Q26 3Q25 YTD 2026 YTD 2025
cost
ratio
GAAP 7.7 % 9.1 % 7.4 % 8.5 %
Settleme…
of
certain — % -0.1 % — % — %
litigati…
expenses
Adjusted 7.7 % 9.0 % 7.4 % 8.5 %
(non-GAA…
Insurance Segment - (Loss) income from operations
INSUR…
SEGME…
(Loss)
income 3Q26 3Q25 YTD 2026 YTD
from 2025
opera…
(in
milli…
GAAP -$303 $251 $1,952 $2,591
Amort…
assoc…
with 4 4 12 13
ident…
intan…
Settl…
of
certa… — 15 — 15
litig…
expen…
Adjus… -$299 $270 $1,964 $2,619
(non-…
(b) 3Q26 GAAP to Adjusted (non-GAAP) EPS reconciliation will not foot due to a
($0.01) impact resulting from the use of common shares to calculate the Adjusted
loss per share versus the use of diluted weighted-average shares in the
calculation of GAAP EPS.
(c) Includes the noncash reversal of the net put liability of approximately $1.2
billion reflected in the company's September 30, 2026 balance sheet; the put was
associated with CenterWell Senior Primary Care's previous joint ventures with
Welsh, Carson, Anderson & Stowe.
(d) FY 2026 GAAP EPS guidance and FY 2026 Adjusted (non-GAAP) EPS guidance
exclude the impact of future value changes to items that have not yet been
recognized and cannot currently be reasonably estimated at this time. The
company does not expect changes to its FY 2026 Adjusted (non-GAAP) EPS guidance.
The company does expect potential changes to its FY 2026 GAAP EPS guidance due
to its ongoing value creation and other strategic initiatives.
5
e) Reflects the new initial option liability associated with the company's
recently announced non-consolidating strategic joint venture with HPS Investment
Partners, a subsidiary of BlackRock and CenterWell Senior Primary Care; this
noncash impact is expected to be recorded in the fourth quarter of 2026.
Management excludes the initial recognition because it results from the
transaction’s ownership and option structure, and it is not considered in
management’s evaluation of core operating results.
Cautionary Statement
This news release includes forward-looking statements regarding Humana within
the meaning of the Private Securities Litigation Reform Act of 1995. When used
in investor presentations, press releases, Securities and Exchange Commission
(SEC) filings, and in oral statements made by or with the approval of one of
Humana’s executive officers, the words or phrases like “expects,” “believes,”
“anticipates,” “assumes,” “intends,” “likely will result,” “estimates,”
“projects” or variations of such words and similar expressions are intended to
identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties, and assumptions, including, among other
things, information set forth in the “Risk Factors” section of the company’s SEC
filings, a summary of which includes but is not limited to the following:
• If Humana does not design and price its products properly and competitively,
if the premiums Humana receives are insufficient to cover the cost of healthcare
services delivered to its members, if the company is unable to implement
clinical initiatives to provide a better healthcare experience for its members,
lower costs and appropriately document the risk profile of its members, or if
its estimates of benefits expense are inadequate, Humana’s profitability could
be materially adversely affected. Humana estimates the costs of its benefit
expense payments, and designs and prices its products accordingly, using
actuarial methods and assumptions based upon, among other relevant factors,
claim payment patterns, medical cost inflation, and historical developments such
as claim inventory levels and claim receipt patterns. The company continually
reviews estimates of future payments relating to benefit expenses for services
incurred in the current and prior periods and makes necessary adjustments to its
reserves, including premium deficiency reserves, where appropriate. These
estimates involve extensive judgment, and have considerable inherent variability
because they are extremely sensitive to changes in claim payment patterns and
medical cost trends. Accordingly, Humana's reserves may be insufficient.
• If Humana fails to effectively implement its operational and strategic
initiatives, including its Medicare initiatives, which are of particular
importance given the concentration of the company's revenues in these products,
state-based contract strategy, the growth of its CenterWell business, and its
integrated care delivery model, the company’s business may be materially
adversely affected.
• The number of Humana’s Medicare Advantage plans rated 4-star or higher
significantly declined in 2025. Humana filed a lawsuit seeking to set aside and
vacate the 2025 Star Ratings of its Medicare Advantage plans, and on October 14,
2025, the Court issued a decision rejecting Humana's challenge. Although the
company has appealed that decision, there can be no assurances that it will
ultimately prevail in the lawsuit. If the company is not successful, the decline
in Star Ratings will negatively impact its 2026 quality bonus payments from CMS
and may also significantly adversely affect the company’s revenues, operating
results, and cash flows. In addition, there can be no assurances the company
will be successful in maintaining or improving its Star Ratings in future years.
• If Humana, or the third-party service providers on which it relies, fails to
properly maintain the integrity of its data, to strategically maintain existing
or implement new information systems (including systems powered by or
incorporating artificial intelligence (AI) or machine learning (ML)), or to
protect Humana’s proprietary rights to its systems, or to defend against cyber-
security attacks, contain such attacks when they occur, or prevent other privacy
or data security incidents that result in security breaches that disrupt the
company's operations or in the unintentional dissemination of sensitive personal
information or proprietary or confidential information, the company’s business
may be materially adversely affected.
• Humana is involved in various legal actions, or disputes that could lead to
legal actions (such as, among other things, provider contract disputes and qui
tam litigation brought by individuals on behalf of the government), governmental
and internal investigations, and routine internal review of business processes
any of which, if resolved unfavorably to the company, could result in
substantial monetary damages or
6
changes in its business practices. Increased litigation and negative publicity
could also increase the company’s cost of doing business.
• As a government contractor, Humana is exposed to risks that may materially
adversely affect its business or its willingness or ability to participate in
government healthcare programs including, among other things, loss of material
government contracts; governmental audits and investigations; potential
inadequacy of government determined payment rates; potential restrictions on
profitability, including by comparison of profitability of the company’s
Medicare Advantage business to non-Medicare Advantage business; or other changes
in the governmental programs in which Humana participates. Changes to the risk-
adjustment model utilized by CMS to adjust premiums paid to Medicare Advantage
plans or retrospective recovery by CMS of previously paid premiums as a result
of the final rule related to the risk adjustment data validation audit
methodology published by CMS on January 30, 2023 (Final RADV Rule), which Humana
believes fails to address adequately the statutory requirement of actuarial
equivalence and violates the Administrative Procedure Act due to its failure to
include a "Fee for Service Adjuster" could have a material adverse effect on the
company's operating results, financial position and cash flows.
• Humana's business activities are subject to substantial government regulation.
New laws or regulations, or legislative, judicial, or regulatory changes in
existing laws or regulations or their manner of application could increase the
company's cost of doing business and have a material adverse effect on Humana’s
results of operations (including restricting revenue, enrollment and premium
growth in certain products and market segments, restricting the company’s
ability to expand into new markets, increasing the company’s medical and
operating costs by, among other things, requiring a minimum benefit ratio on
insured products, lowering the company’s Medicare payment rates and increasing
the company’s expenses associated with a non-deductible health insurance
industry fee and other assessments); the company’s financial position (including
the company’s ability to maintain the value of its goodwill); and the company’s
cash flows.
• Humana’s failure to manage acquisitions, divestitures and other significant
transactions successfully may have a material adverse effect on the company’s
results of operations, financial position, and cash flows.
• If Humana fails to develop and maintain satisfactory relationships with the
providers of care to its members, the company’s business may be adversely
affected.
• Humana faces significant competition in attracting and retaining talented
employees. Further, managing succession for, and retention of, key executives is
critical to the Company’s success, and its failure to do so could adversely
affect the Company’s businesses, operating results and/or future performance.
• Humana’s pharmacy business is highly competitive and subjects it to
regulations and supply chain risks in addition to those the company faces with
its core health benefits businesses.
• Changes in the prescription drug industry pricing benchmarks may adversely
affect Humana’s financial performance.
• Humana’s ability to obtain funds from certain of its licensed subsidiaries is
restricted by state insurance regulations.
• Downgrades in Humana’s debt ratings, should they occur, may adversely affect
its business, results of operations, and financial condition.
• Volatility or disruption in the securities and credit markets may
significantly and adversely affect the value of our investment portfolio and the
investment income that we derive from this portfolio.
In making forward-looking statements, Humana is not undertaking to address or
update them in future filings or communications regarding its business or
results. In light of these risks, uncertainties, and assumptions, the forward-
looking events discussed herein may or may not occur. There also may be other
risks that the company is unable to predict at this time. Any of these risks and
uncertainties may cause actual results to differ materially from the results
discussed in the forward-looking statements.
Humana advises investors to read the following documents as filed by the company
with the SEC for further discussion both of the risks it faces and its
historical performance:
• Form 10-K for the year ended December 31, 2025;
• Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026; and
7
• Form 8-Ks filed during 2026.
About Humana
Humana (NYSE: HUM) is a leading U.S. healthcare company. Through our Humana
insurance services and our CenterWell health care services, we make it easier
for the millions of people we serve to achieve their best health – delivering
the care and service they need, when they need it. These efforts are leading to
a better quality of life for people with Medicare and Medicaid, families,
individuals, military service personnel, and communities at large. Learn more
about what we offer at Humana.com and at CenterWell.com.
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