A health insurance and care services company based in Louisville, Kentucky, Humana provides Medicare, Medicaid, and specialty health plans alongside pharmacy, primary care, and home health services through its CenterWell arm. Two lawyers started the firm in 1961 with a single nursing home called Heritage House; after growing that business under the name Extendicare, they renamed it Humana in 1974 to emphasize "human care" as it moved into hospitals.
Q2 2026 net income rose 27.6% to $693M as revenue grew 23.5% to $39.6B despite a 140 bps benefit ratio rise
rose 27.6% to $693M after three quarters of declines. rose 23.5% to $39.6B and was $9.83, with the gain driven by 26.4% premium growth partly offset by a 140 rise to 91.1% from the 2026 and new member costs. The company returned to profit growth, but the benefit ratio sits above 90% as Star Ratings pressure persists.
Key takeaways
rose 27.6% to $693M as consolidated premiums grew 26.4% to $38.8B from Medicare Advantage and stand-alone PDP membership gains and higher per-member premiums under CMS benchmark increases and IRA Part D subsidies.
The consolidated increased 140 to 91.1%, reflecting the 2026 , higher benefit ratios from new individual MA members, and lower favorable prior-period medical claims reserve development.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 27.6% to $693M on 26.4% premium growth, but benefit ratio worsened 140 bps to 91.1% due to Star Ratings headwind and new member costs.
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Consolidated premiums grew 26.4% to $38.8B, driven by Medicare Advantage and stand-alone PDP membership gains and higher per-member premiums from CMS benchmark increases and IRA Part D subsidies.
grew 35.5% to $466M with external services up 32.4% to $1.6B from payor-agnostic client expansion, though its improved only 30 to 92.4% on the phase-in and acquisition costs.
Insurance rose 7.0% to $820M as its improved 120 to 7.1% from and cost initiatives, partially offset by the .
increased $1.6B to $3.2B, aided by favorable including a $1.05B Medicaid state-directed payment timing benefit and higher balances.
totaled $56M in Q2 2026, and the MaxHealth acquisition closed in February 2026 for ~$908M, adding ~$800M in .
What changed
Q1 2026 flagged the Q2 against the 89.4% Q1 level: it rose 140 to 91.1% as the and new member costs settled in.
The 2025 lawsuit outcome remains unresolved; the 2026 Star Ratings is now flowing through and the , with 2026 CMS quality bonus payments still affected if no relief.
Additional 2026 value creation charges beyond the $98M in Q1 appeared as $56M in Q2, with the company expecting more.
was flagged after the 340 Q1 rise to 94.5%; it improved 30 bps to 92.4% in Q2 as v28 phase-in and acquisition costs persisted.
reversed from a 4.7% Q1 decline to a 27.6% Q2 increase, ending three straight quarters of net income declines that ran from Q2 2025 through Q1 2026.
The widened to $1.0B at June 30 from $0.8B at year-end 2025; a 1% rate rise would cut fair value by about $766M, per the Q2 disclosure.
What to watch
Q3 2026 consolidated against the 91.1% Q2 level as and medical cost trends settle
Additional 2026 beyond the $56M recorded in Q2
trajectory after the 30 Q2 improvement to 92.4% from phase-in
Outcome of the 2025 lawsuit and its effect on 2026 CMS quality bonus payments
The consolidated increased 140 to 91.1%, reflecting the BY 2026 Star Ratings , higher benefit ratios from new individual MA members, and lower favorable .
Insurance rose 7.0% to $820M, as improved 120 to 7.1% from and cost initiatives, partially offset by the Star Ratings .
grew 35.5% to $466M, with external services up 32.4% to $1.6B from payor-agnostic client expansion, though improved only 30 to 92.4% due to v28 risk model phase-in and acquisition costs.
increased $1.6B to $3.2B, aided by favorable including a $1.05B Medicaid state-directed payment timing benefit and higher balances.
Value creation initiative charges totaled $56M in Q2 2026, and the company expects additional charges; the MaxHealth acquisition closed in February 2026 for ~$908M, adding ~$800M in .
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk from a $23B fixed-income portfolio is the primary market exposure, with a 1% rate rise estimated to reduce fair value by $766M.
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The investment portfolio, mostly investment-grade fixed maturity securities rated AA- on average, had a net of $1.0B at June 30, 2026, up from $0.8B at year-end 2025.
Gross unrealized losses of $1.0B stem mainly from higher market interest rates since purchase; no material credit allowances were recorded in the first half of 2026.
The company warns that future declines in fair value could lead to material realized losses or credit allowances if market conditions worsen or if it sells securities.
Portfolio , including cash equivalents, was 3.3 years at June 30, 2026, down from 3.6 years at year-end 2025.
A hypothetical 1% increase in interest rates would decrease the fair value of securities by approximately $766 million based on the June 30, 2026 .
For additional information regarding legal proceedings pending against us and certain other pending or threatened litigation, investigations or other matters, refer to “Legal Proceedings and Certain Regulatory Matters” in Note 13 to the unaudited Consolidated Financial Statement…
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For additional information regarding legal proceedings pending against us and certain other pending or threatened litigation, investigations or other matters, refer to “Legal Proceedings and Certain Regulatory Matters” in Note 13 to the unaudited Consolidated Financial Statements included in Part I, Item 1, "Financial Statements" of this Form 10-Q.