Humana posts an adjusted loss of 70 cents a share, yet raises its 2026 profit floor to $9.50

Humana reported a third quarter that looks like two different companies depending on which line you read. On a GAAP basis it earned $1.33 a share. On the adjusted basis it guides investors with, it lost $0.70 a share, against a profit of $3.24 a year earlier. It also raised its full-year adjusted earnings floor to "at least $9.50" from "at least $9.00," according to its earnings release on SEC EDGAR. Shares were up 3.3% at $425.33 at 11:26 AM ET, per Nasdaq.com.

The number behind the number

The GAAP profit is the part to read carefully. Humana's pretax GAAP income was $216 million, and the release shows a $358 million favorable "put call valuation adjustment" on minority-interest investments inside it. Strip that out, along with smaller items, and the adjusted pretax result is a loss of $104 million, against a $527 million profit in the third quarter of 2025. The $0.70 loss is therefore the operating story. The $1.33 is not.

Total revenue rose 26.1% and individual Medicare Advantage premiums rose 27.4%, both our arithmetic on the release's figures. The company attributes the growth to Medicare membership gains and higher per-member premiums. It says new members "run at a higher benefit ratio" than retained ones, which is why growth is currently costing earnings rather than adding to them.

What beat, and what did not

The insurance segment's GAAP benefit ratio, the share of premiums paid out as medical costs, came in at 93.7%. Management had guided to "slightly above 94 percent," so that is the beat behind the raised outlook. Even so, the insurance segment posted a loss from operations of $303 million in the quarter, while the CenterWell care-delivery segment earned $243 million. For the full year, Humana still expects an insurance benefit ratio of 92.75%, plus or minus 25 basis points. That is a company forecast, not a result.

The raised floor is also still a decline. Humana's own release says the 2026 adjusted guidance "anticipates a year-over-year decline" because of the lower Star Ratings that hit 2026 revenue. Full-year adjusted EPS for 2025 was $17.14. Year to date, adjusted EPS is $17.17, so a full-year figure of $9.50 would mean a fourth-quarter adjusted loss of about $7.67 a share (our arithmetic). Because the guidance is 'at least,' that is the worst case Humana is signalling, not its expectation.

What to watch

• Whether the fourth quarter delivers the benefit ratio that the 92.75% full-year figure requires.
• Medicare Advantage membership: the company still guides to individual MA growth of about 25% for the year, unchanged.
• CenterWell: the release flags higher primary care costs "concentrated to a group of specific patients in a single geography."
• Star Ratings: our earlier story covers the 2027 ratings that Humana shares jumped on in October, and our look at narrower 2027 networks covers what plans are changing for members.

For business owners who buy group coverage, the relevant detail is that Humana says it exited its employer group commercial medical products business, a $62 million adjustment in the release. See all stock coverage.

Sources: Humana Form 8-K and Exhibits 99.1 and 99.2, filed Nov. 6, 2026 on SEC EDGAR; quote data via Nasdaq.com. Percent changes are our calculations. This is market information, not investment advice.