By Catherine Dunn and Adam Clark

Humana shares fell on Wednesday after the company gave a full-year outlook below expectations, although it reported a narrower-than-expected loss in the fourth quarter.

Humana reported an adjusted net loss per share of $3.96 on revenue of $32.52 billion.

Analysts had expected fourth-quarter revenue of $32.0 billion and an adjusted fourth-quarter loss of $4 per share, according to FactSet.

The company said it expects 2026 adjusted earnings of at least $9 a share. Wall Street had penciled in $11.91 a share.

"The FY 2026 projected guidance anticipates a year-over-year decline as a result of the Star Ratings headwind for Bonus Year 2026, net of mitigation," the company said in a statement.

Lower Medicare Advantage star ratings lead to a decline in quality bonus payments made to the company.

Humana shares were down 5.7% in premarket trading.

This is breaking news. Read a preview of Humana's earnings below and check back for more analysis.

Humana reports fourth-quarter earnings on Wednesday as the insurer and its peers continue to grapple with proposed Medicare Advantage payment rates that sparked a selloff late last month.

Shares of Humana are down 31% since Jan. 26, when the federal government announced plans to keep rates nearly flat in 2027 for the insurers that offer Medicare Advantage health plans to seniors.

The proposed payment rate could be revised when the final rate announcement is published in the spring. In the meantime, analysts have peppered insurers with questions about the initial notice, which UnitedHealth Group called disappointing.

Humana is one of the largest players in Medicare Advantage, the privately-run alternative to traditional Medicare coverage offered by the government. As of Sept. 30, Humana served 5.8 million members across individual and group MA plans, according to company filings. Premiums for those members comprise the bulk of Humana's revenues.

In 2025, Humana's stock rose about 1%, holding steady after a drop of more than 40% in 2024, when higher medical costs took a toll on shares.

On Wednesday, Wall Street expects Humana to report fourth-quarter revenue of $32.0 billion and an adjusted fourth-quarter loss of $4.00 per share, according to FactSet. For the full year, the consensus estimate places adjusted earnings per share at $17.08.

For the fourth quarter, analysts also expect to see a 93.5% medical-loss-ratio, a metric that tracks insurer spending on health claims as a portion of premiums. That estimate puts the loss ratio about 2 percentage points higher than the same quarter a year prior.

Other large Medicare Advantage companies have yet to fully recover from the recent market plunge. Since the January rate announcement, UnitedHealth is down 22%, Elevance Health is down nearly 14%, and CVS Health is down almost 10%.

Write to Catherine Dunn at catherine.dunn@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

By Catherine Dunn and Adam Clark

Humana shares fell on Wednesday after the company gave a full-year outlook below expectations, although it reported a narrower-than-expected loss in the fourth quarter.

Humana reported an adjusted net loss per share of $3.96 on revenue of $32.52 billion.

Analysts had expected fourth-quarter revenue of $32.0 billion and an adjusted fourth-quarter loss of $4 per share, according to FactSet.

The company said it expects 2026 adjusted earnings of at least $9 a share. Wall Street had penciled in $11.91 a share.

"The FY 2026 projected guidance anticipates a year-over-year decline as a result of the Star Ratings headwind for Bonus Year 2026, net of mitigation," the company said in a statement.

Lower Medicare Advantage star ratings lead to a decline in quality bonus payments made to the company.

Humana shares were down 5.7% in premarket trading.

This is breaking news. Read a preview of Humana's earnings below and check back for more analysis.

Humana reports fourth-quarter earnings on Wednesday as the insurer and its peers continue to grapple with proposed Medicare Advantage payment rates that sparked a selloff late last month.

Shares of Humana are down 31% since Jan. 26, when the federal government announced plans to keep rates nearly flat in 2027 for the insurers that offer Medicare Advantage health plans to seniors.

The proposed payment rate could be revised when the final rate announcement is published in the spring. In the meantime, analysts have peppered insurers with questions about the initial notice, which UnitedHealth Group called disappointing.

Humana is one of the largest players in Medicare Advantage, the privately-run alternative to traditional Medicare coverage offered by the government. As of Sept. 30, Humana served 5.8 million members across individual and group MA plans, according to company filings. Premiums for those members comprise the bulk of Humana's revenues.

In 2025, Humana's stock rose about 1%, holding steady after a drop of more than 40% in 2024, when higher medical costs took a toll on shares.

On Wednesday, Wall Street expects Humana to report fourth-quarter revenue of $32.0 billion and an adjusted fourth-quarter loss of $4.00 per share, according to FactSet. For the full year, the consensus estimate places adjusted earnings per share at $17.08.

For the fourth quarter, analysts also expect to see a 93.5% medical-loss-ratio, a metric that tracks insurer spending on health claims as a portion of premiums. That estimate puts the loss ratio about 2 percentage points higher than the same quarter a year prior.

Other large Medicare Advantage companies have yet to fully recover from the recent market plunge. Since the January rate announcement, UnitedHealth is down 22%, Elevance Health is down nearly 14%, and CVS Health is down almost 10%.

Write to Catherine Dunn at catherine.dunn@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 11, 2026 06:33 ET (11:33 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.