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Mar 31
Humana Q1 2025 Earnings Report
Humana reported strong financial results with substantial year-over-year growth in revenue, EPS, and net income.
Key Takeaways
Humana delivered a solid Q1 2025 performance, driven by strong results in its Medicare Advantage business and continued execution of its long-term value-based care strategy.
GAAP EPS rose to $10.30, while adjusted EPS increased to $11.58.
Revenue reached $32.112 billion, up from $29.611 billion in Q1 2024.
Net income grew to $1.691 billion, up from $1.014 billion a year earlier.
Insurance segment benefit ratio remained consistent with expectations at 87.4%.
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Humana Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.com Forward Guidance
Humana reaffirmed its FY 2025 adjusted EPS guidance and benefit ratio targets while revising down its GAAP EPS forecast slightly.
Positive Outlook
- FY 2025 adjusted EPS guidance affirmed at approximately $16.25.
- FY 2025 insurance segment benefit ratio guidance affirmed at 90.1% to 90.5%.
- Strong performance in Medicare Advantage aligned with expectations.
- Continued expansion in CenterWell and Medicaid businesses.
- NovoCare partnership selected CenterWell Pharmacy for weight loss drug fulfillment.
Challenges Ahead
- GAAP EPS guidance revised down from $15.88 to $14.68.
- Expected annual Medicare Advantage membership decline of approximately 550,000.
- Ongoing impact from exiting certain unprofitable plans and counties.
- Potential revenue impact from 2025 Medicare Advantage Star Ratings downgrade.
- Regulatory and legal risks remain elevated, including RADV rule concerns.