$HUM · HUMANA INC
Humana filed its Q3 FY2026 10-Q. Total revenues rose 26.1% YoY to $41.155B, driven by a 26.0% jump in insurance premiums to $38.7B and 40.4% growth in CenterWell external services revenue. However, income from operations fell 81.3% to $75M from $400M, as benefits expense grew 29.8% to $36.3B. Net income attributable to Humana was $162M ($1.33 diluted EPS) versus $195M ($1.62) a year earlier. The company acquired MaxHealth in February 2026 for ~$908M net of cash.
- Revenue rose 26.1% YoY to $41.155B in Q3 FY2026.
- Income from operations fell 81.3% to $75M from $400M.
- Diluted EPS declined to $1.33 from $1.62 a year ago.
- Benefits expense grew 29.8% to $36.3B, outpacing premium growth.
- CenterWell external services revenue grew 40.4% to $1.9B.
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Top-line growth masks a sharp margin collapse, with benefits costs growing faster than premiums and EPS down 18% YoY.
Medicare Advantage margins remain under pressure from the v28 risk-model phase-in, a headwind shared across managed-care peers.
Benefits expense growth (29.8%) outpacing premium growth (26.0%) signals deteriorating medical cost ratios. The company cites sustained macroeconomic, regulatory, and competitive pressures driving a multi-year transformation program.