Humana tops quarterly estimates, maintains profit outlook as medical costs stay in line
📰 source: cnbc_topnews · 💼 business
humana beat wall street estimates on both earnings and revenue in q2, with adjusted eps of $7.61 against $7.22 expected and revenue of $40.87b. the health insurer's medical cost ratio came in at 91.2%, in line with projections, and it kept its 2026 adjusted profit outlook of at least $9 per share. still, shares dropped more than 6% as cantor fitzgerald called the unchanged guidance a disappointment after some peers raised theirs.
cfo celeste mellet said medical and pharmacy cost trends tracked in line with expectations, though pharmacy costs remain elevated due to drug prices and new medicines. she said the company expects changes to its 2027 medicare advantage plans to help reach a sustainable pretax margin of at least 3% by 2028. the stock decline suggests investors wanted more after recent industry optimism.
why it matters: earnings beat but stock fell 6% as unchanged profit outlook disappointed investors after rivals raised guidance.
source: cnbc_topnews
sentiment: +0.20 · impact: 0.35