Humana (NYSE:HUM) Surpasses Sales Expectations; Shares Drop After Q4 CY2025 Earnings

Humana (NYSE:HUM) reports Q4 CY2025 revenue of $32.52B, up 11.4% YoY, exceeding $1.4B in Street estimates. The GAAP loss of $6.61 per share was 62.2% lower than the consensus. The stock fell 8.1% to $166.67 in after-hours trading. Key context: The company serves about 17 million members, with 80% of revenue from federal contracts and a focus on Medicare Advantage. Sales growth over the last five years averaged 11.2% CAGR, up 12.4% in the past two years, and customer count reached 15 million in Q4. Financial highlights: Operating margin expanded to 4.1% in Q4, up 600 basis points YoY. EPS was -$6.61, down from -$5.75 in the same quarter last year, and full-year 2026 EPS guidance of $9.80 is expected to grow 23.1% YoY. EPS growth over the last five years lagged revenue gains (down 17.3% vs. 11.2% CAGR), tempered by interest and tax expenses and share repurchases. <div> Macroeconomic and regulatory risks include lower Medicare Advantage ratings for older adults, which could weigh on future growth. While revenue momentum remains strong, investors should assess valuation and long-term earnings potential before considering action. </div>