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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%.
Humana
Humana
Humana Revenue by Segment
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.