Humana Reports Strong Q1 2025 Earnings, Reaffirms Full-Year Guidance
Humana Inc. (HUM) delivered a solid first-quarter 2025 performance, beating Wall Street expectations on earnings despite a slight revenue miss. The company’s adjusted earnings per share (EPS) came in at $11.58, significantly higher than analyst forecasts of $10.09. Revenue for the quarter totaled $32.11 billion, just shy of the $32.15 billion consensus estimate.
The results sparked investor confidence, sending Humana stock up 5% in premarket trading on the day of the report.
Key Financial Highlights – Q1 2025
- Adjusted EPS: $11.58 (vs. $10.09 expected)
- Revenue: $32.11 billion (slightly below $32.15 billion expected)
- Medical Loss Ratio (MLR): Expected between 90.1% and 90.5% for full year
- Full-year guidance reaffirmed
Medicare Advantage Outlook & Operational Commentary
Humana, a major player in the Medicare Advantage market, stated that its medical loss ratio remains aligned with internal forecasts. Although the projected MLR is above the Affordable Care Act’s 85% minimum threshold, the company emphasized its confidence in pricing strategies and cost control measures.CEO Jim Rechtin reassured investors during the earnings call, saying:
This comes at a time when investors are closely monitoring Medicare Advantage providers following UnitedHealth Group's earnings miss earlier this month, which was tied to unexpected increases in Medicare-related costs. That news initially pulled down Humana stock by over 12%, though the latest earnings have helped restore some market confidence.