Humana raises FY2026 adjusted EPS outlook as membership and Stars metrics improve

Transcript intelligence

What changed

Management raised the full-year adjusted EPS outlook to $9–$9.50. It also reported a member-weighted Stars rating of 4.17 and said CenterWell added 147,000 members, described in the analysis as 30% growth. Versus Q2, the transcript analysis highlights the raised outlook and new BlackRock joint venture; it also notes the completion of the MaxHealth acquisition and a Medicaid footprint spanning 13 states.

Guidance delta

Raised: management increased the full-year adjusted EPS outlook to $9–$9.50. The supplied analysis does not give the prior numerical range, so the size of the increase is not stated here.

Key takeaways

• Full-year adjusted EPS outlook increased to $9–$9.50.
• The member-weighted Stars rating was 4.17; management emphasized maintaining top-quartile performance in 2028 and 2029.
• CenterWell added 147,000 members, and the Medicaid footprint reached 13 states, according to the supplied transcript analysis.
• Management cited better-than-expected cost trends but projected Part D costs to rise 14–15%.
• The BlackRock joint venture replaced the prior Welsh, Carson JV; the analysis says the transactions reduced the GAAP debt-to-capital ratio by about 130 basis points.

Management priorities

• Maintain top-quartile Stars performance in 2028 and 2029.
• Continue expanding Medicaid SNPs and dual-eligible programs.
• Provide a detailed transformation update at the December 10 investor event.
• Pursue operational efficiency and improved product positioning and pricing for margin.