Humana Inc. HUM is set to report first-quarter 2026 results on April 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $9.97 per share on revenues of $39.5 billion.
The consensus estimate for the first-quarter earnings has increased by 8 cents over the past 30 days. However, the bottom-line projection indicates a year-over-year decrease of 13.9%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 22.8%.
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For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.6 billion, implying a rise of 25.3% year over year. Also, the consensus mark for the current year’s EPS is pegged at $9.09, implying a decline of around 47% on a year-over-year basis.
HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 7%.
Humana Inc. Price, Consensus and EPS Surprise
Humana Inc. price-consensus-eps-surprise-chart | Humana Inc. Quote
Q1 Earnings Whispers for HUM
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Humana currently has an Earnings ESP of -5.02% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping HUM’s Q1 Results?
Humana's revenue growth in the first quarter is expected to have been supported by higher premiums. The Zacks Consensus Estimate for premiums indicates a 22.2% increase from the prior-year quarter’s reported figure, whereas our model predicts 19.8% growth. Similarly, the consensus mark for service revenues signals a 19.3% increase from a year ago.
The consensus mark for total Medicare revenues signals a 24% increase from a year ago. The Zacks Consensus Estimate for revenues from the CenterWell unit indicates 13.2% growth from a year ago. The Zacks Consensus Estimate for specialty membership is expected to witness nearly 1.6% growth in the quarter under review.
However, the Zacks Consensus Estimate for operating income from the Insurance unit predicts a 15.6% decrease from the year-ago level. Furthermore, the consensus estimate indicates that Humana’s investment income will see a 12.9% drop from the year-ago level.
We expect total operating costs to increase 21.8% in the first quarter, pushing the figure above $36.6 billion. This is likely to have led to a year-over-year decline in the bottom line. The consensus mark for the overall benefits expense ratio is pegged at 89.5% for the to-be-reported quarter, deteriorating from 87% a year ago.
Stocks That Warrant a Look
Here are some companies worth considering from the broader Medical space, as our model shows that these have the right combination of elements to beat on earnings this time:
Agenus Inc. AGEN has an Earnings ESP of +7.69% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Agenus’ bottom line for the to-be-reported quarter indicates 289.3% year-over-year growth. Agenus beat earnings estimates in two of the past four quarters and missed twice, with the average surprise being 31.4%. The consensus estimate for revenues is pegged at $129.5 million.
The Ensign Group, Inc. ENSG presently has an Earnings ESP of +1.12% and a Zacks Rank #2.
The Zacks Consensus Estimate for Ensign Group’s bottom line for the to-be-reported quarter suggests 17.8% year-over-year growth. Ensign Group beat earnings estimates in each of the past four quarters, with the average surprise being 2.9%. The consensus estimate for revenues is pegged at $1.4 billion.
The Cigna Group CI currently has an Earnings ESP of +0.75% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Cigna Group’s earnings for the to-be-reported quarter is pegged at $7.54 per share, suggesting 11.9% year-over-year growth. Cigna Group beat earnings estimates in each of the past four quarters, with the average surprise being 2.7%. The consensus estimate for revenues is pegged at $66.7 billion.
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Cigna Group (CI) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
