Humana (HUM)
NYSEHealth CareMedical - Healthcare PlansSnapshot 2026-09-04
$401.54-1.23%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Healthcare PlansSnapshot 2026-09-04
QuarterlyIQ Insights · HUM
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within health care on a research-validated quality screen. As of 2026-09-04.
The screen ranks HUM against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Health Care names rated strong grew net income 53% of the time over the next year (vs 41% for the rest of the cohort, n=9986).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to target adjusted earnings per share of at least $9.00 for fiscal year 2026 despite expected headwinds from Star Ratings.
Stated as a priority in 3 of last 3 quarters. Management affirmed FY 2026 Adjusted EPS guidance consistently at 'at least $9.00' from 2025-Q4 through 2026-Q2, while revising GAAP EPS guidance downward from $8.89 to $6.52 due to Star Ratings headwinds. The trajectory shows consistent commitment to adjusted EPS guidance despite GAAP EPS pressure, indicating delivery on the stated priority.
“Affirms FY 2026 Adjusted EPS guidance of 'at least $9.00'; revises GAAP EPS guidance to 'at least $6.52' from 'at least $8.36'.”
“Affirms Adjusted FY 2026 GAAP EPS guidance of 'at least $9.00'; revises GAAP EPS guidance to 'at least $8.36' from 'at least $8.89'.”
“Introduces FY 2026 GAAP EPS guidance of 'at least $8.89'; 'at least $9.00' on an Adjusted basis.”
Continue strategic growth and integration of CenterWell Senior Primary Care and Medicaid contracts to broaden national footprint and patient base.
Stated as a priority in 4 of last 4 quarters. CenterWell Senior Primary Care patient base grew from approximately 56,500 in 2025-Q3 to 130,900 YTD 2026, reflecting strong expansion. Medicaid footprint expanded to 13 states by 2025-Q4 with new contracts including Illinois statewide effective 2027. The trajectory shows delivering growth and footprint expansion consistent with management's stated priorities.
Address challenges from decline in Medicare Advantage Star Ratings affecting quality bonus payments and revenues.
Stated as a priority in 4 of last 4 quarters. Management consistently cites the Star Ratings decline as a key headwind impacting FY 2026 earnings guidance and quality bonus payments. The company has pursued legal action challenging the 2025 Star Ratings but the court rejected the challenge. The trajectory shows persistent regulatory challenge with limited resolution so far.
“FY 2026 Adjusted EPS guidance anticipates decline due to Star Ratings headwind for Bonus Year 2026, net of mitigation.”
Continue transformation program to realign cost structure, operating model, and technology footprint with market conditions.
Stated as a priority in 6 of last 6 quarters. Management consistently reports value creation initiative charges related to transformation efforts to realign cost structure and operating model. These charges are recorded at the corporate level and have been consistently applied, indicating ongoing execution of the program. The trajectory shows persistent focus with ongoing costs incurred.
“Value creation initiatives charges recorded at corporate level; multi-year transformation program ongoing.”
Grow individual Medicare Advantage membership approximately 25% over 2025 through new sales and improved retention.
Stated as a priority in 3 of last 3 quarters. Management has consistently affirmed a target of approximately 25% growth in individual Medicare Advantage membership over 2025 for FY 2026. While specific membership numbers are not disclosed, the repeated affirmation indicates ongoing focus on this growth target. The trajectory shows consistent emphasis on membership growth.
“Affirms FY 2026 individual Medicare Advantage membership growth of approximately 25% over 2025.”
Over the trailing year it converted -1.95x of net income into operating cash flow. Historically, Health Care names rated fragile grew net income 32% of the time over the next year (vs 54% for the rest of the cohort, n=2490).
Not enough signal yet.
Not enough signal to read sensitivity to the broad stock market, the US dollar, Fed net liquidity, real (inflation-adjusted) rates, long-term interest rates (low R² over the window).
26 material management or governance events in the past 24 months, led by legal/regulatory items. Historically, Health Care names rated volatile grew net income 53% of the time over the next year (vs 50% for the rest of the cohort, n=3986).
Not investment advice. As of 2026-09-04.
“YTD growth of 130,900 patients, or 27 percent, in CenterWell Senior Primary Care; broadened Illinois Medicaid footprint with new statewide contract.”
“Sequential growth of 110,500 patients, or over 22 percent, in CenterWell Senior Primary Care; state-based contracts membership growth of approximately 50,000.”
“Growth of 100,600 patients, or over 25 percent, in CenterWell Senior Primary Care during 2025; expanded Medicaid footprint now spans 13 states.”
“Advancement of long-term strategy through growth in CenterWell and Medicaid businesses; preparing for new Medicaid programs in Michigan, Illinois, and South Carolina.”
“FY 2026 Adjusted EPS guidance anticipates year-over-year decline from Star Ratings headwind for Bonus Year 2026, net of mitigation.”
“Company filed lawsuit seeking to set aside 2025 Star Ratings; court rejected challenge; company appealed.”
“Number of Medicare Advantage plans rated 4-star or higher significantly declined in 2025; ongoing legal challenge.”
“Value creation initiatives charges relate to multi-year transformation program with defined scope and milestones.”
“Value creation initiatives charges recorded at corporate level; consistent application across periods.”
“Charges relate to ongoing initiative to drive additional value through cost saving and productivity initiatives.”
“Value creation initiatives primarily include asset impairment, severance charges, and external consulting spend.”
“Value creation initiatives charges consistently applied; part of multi-year transformation program.”
“Affirms FY 2026 individual Medicare Advantage membership growth of approximately 25% over 2025.”
“Anticipates FY 2026 individual Medicare Advantage membership growth of approximately 25% over 2025.”