Humana Shares Jump After Raising Profit Forecast on Controlled Costs
hares of Humana (NYSE:HUM) surged 6% in premarket trading on Wednesday after the health insurer raised its full-year profit forecast, signaling its strategy to manage rising medical costs is succeeding where its rivals have struggled.
The company beat second-quarter profit estimates, attributing the strong performance to keeping its medical expenses in check. This positive result stands in contrast to competitors like UnitedHealth, which recently cut its own outlook due to unexpectedly high healthcare utilization.
Humana’s medical loss ratio—the percentage of premiums spent on medical care—came in at 89.7% for the quarter, in line with analyst expectations. The company also pointed to better-than-expected membership numbers in its individual Medicare Advantage plans and a strong showing from its CenterWell care-delivery unit.
“We reduced more benefits, and more significantly than all of our competitors in 2025,” said George Renaudin, President of Insurance, highlighting the company’s proactive measures.
The health insurance industry has been grappling with elevated costs for nearly two years as patients, particularly seniors on government-backed plans, have sought more medical services than anticipated post-pandemic.
Buoyed by its performance, Humana now projects a full-year profit of approximately $17 per share, a notable increase from its previous forecast of about $16.25. This revised guidance tops the average analyst estimate of $16.38 per share, according to LSEG data.
“We think this increase will be received positively, as the company’s 2025 repricing actions appear to be having their intended effect,” noted J.P. Morgan analyst Lisa Gill.
For the second quarter, Humana reported an adjusted profit of $6.27 per share, comfortably beating Wall Street’s consensus estimate of $5.92.
