# Humana Inc. (HUM) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/HUM/thesis · /stocks/HUM/memo

## Financial Snapshot

---
ticker: HUM
step: 04
generated: 2026-05-12
source: quick-research
---

### Humana Inc. (HUM) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25v24) |
|--------|--------|--------|--------|--------|-------------|
| Revenue | $92.9B | $106.4B | $117.8B | $129.7B | +10.1% |
| GAAP EPS (diluted) | ~$22.40 | $20.00 | $9.98 | $9.84 | -1.4% |
| Adj. EPS (non-GAAP) | $25.20 | $26.09 | $16.21 | ~$17.14 (normalized) | — |
| Net Income | $2.81B | $2.49B | $1.21B | $1.20B | ~flat |
| Medical Loss Ratio (MA) | ~86% | ~87% | ~90%+ | ~91–92% | — |

GAAP EPS collapsed in 2024 driven by higher-than-expected MA medical cost trend and a $541M Q4 2024 loss. 2025 stabilized at low base; the 2026 hit comes from the STAR rating bonus payment cliff.

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$3B (compressed by MA margin pressure) |
| Capex | ~$1.0B |
| Free Cash Flow | ~$2B |
| Cash & Investments | ~$22B (regulated insurance reserves dominate) |
| Total Debt | ~$13B |
| Net Cash position varies by year-end working capital |

#### Key Ratios (approximate, May 2026)
- P/E (TTM, GAAP): ~25x — distorted by depressed earnings | EV/EBITDA: ~12x | FCF Yield: ~5–7%
- Revenue Growth (TTM): ~10% | MLR: ~92%+ | Operating Margin: ~1–2% (compressed)
- Trading at deep discount to historical "quality compounder" multiple

#### Membership / Segment Stats (FY2025 / FY2026)
- 2025 individual MA membership: ~5.7M
- 2026 individual MA membership growth target: ~25% YoY
- Operating county footprint: 85% of US counties (down from 89%)
- CenterWell Primary Care patients: +100,600 in 2025 (+25%)
- 2025 STAR ratings: 25% of MA members in 4+ star plans (down from 94% in 2024)
- 2026 STAR ratings: 14% of MA members in 4.5+ star plans (modest improvement from 3% in 2025)

#### Growth Profile
Humana is in the middle of a multi-year cyclical earnings reset:
1. **2024 medical cost trend shock** — MA utilization persisted at elevated levels, compressing MLR
2. **2025 STAR ratings collapse** — Largest drop of any major MA insurer; analyst estimate $1–3B 2026 revenue impact from lost quality bonus payments
3. **2026 EPS guidance ~$9** — vs. peak normalized EPS of ~$26 in 2023; reflects deepest cyclical compression in years
4. **2027–2028 recovery path** — Consensus models EPS recovery to ~$15 in 2027, ~$26 in 2028 IF: (a) medical cost trend normalizes, (b) STAR ratings recover for 2027 bonus year, (c) 5% effective CMS rate increase materializes, (d) county footprint pruning + benefit design discipline holds margins

**Litigation status:** Humana sued HHS over STAR ratings; lost initial challenge, refiled, lost again, currently appealing to 5th Circuit. Any litigation win would create binary upside catalyst.

#### Forward Estimates
**2026 guidance:** "At least $8.89" GAAP EPS / "at least $9.00" adjusted EPS — decline from 2025 due to STAR Ratings headwind net of mitigation. MLR ~92.75% expected. Bull-side scenarios pencil in cyclical recovery + STAR re-rating + CMS rate normalization driving EPS to ~$15 in 2027 and ~$26 in 2028. Bear-side scenarios extend the STAR / medical cost pressure into 2027 with EPS staying below $12 and continued multiple compression.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/HUM/fundamental

## Navigation

- Overview: /stocks/HUM
- Financials (this page): /stocks/HUM/financials
- Thesis: /stocks/HUM/thesis
- Investment Memo: /stocks/HUM/memo
- Coverage universe: /stocks