Humana Inc. has posted lower GAAP earnings for the second quarter of 2025 but raised its full-year adjusted earnings guidance as it looks to strengthen its core health insurance and care delivery businesses.
The company reported GAAP earnings per share of $4.51 for the quarter, down from $5.62 a year earlier. Adjusted EPS came in at $6.27, compared to $6.96 in the second quarter of 2024. For the first six months of the year, GAAP EPS stood at $14.81, while adjusted EPS reached $17.85.
Humana lowered its full-year 2025 GAAP EPS guidance to approximately $13.77, down from $14.68. At the same time, it raised its adjusted EPS outlook to about $17.00, up from $16.25, citing ongoing operational improvements and a more targeted strategy in its Medicare Advantage portfolio.
Revenue projections were also revised upward, with the company now expecting to generate at least $128 billion for the year, an increase from its previous range of $126 billion to $128 billion. Its full-year insurance benefit ratio guidance remains unchanged at 90.1% to 90.5%.
The insurer updated its Medicare Advantage membership outlook, now anticipating a decline of up to 500,000 members, less than the previously forecast drop of approximately 550,000. The revision includes the impact of exiting selected unprofitable plans and geographic areas.
Despite the membership decline, Humana said it is holding firm on its pricing strategy, which prioritizes long-term value over short-term enrollment growth.
Humana also reported continued growth in its CenterWell operations. CenterWell Pharmacy added access to 17 new limited distribution drugs and received the MMIT Patient Choice award for the seventh time in eight years. Meanwhile, CenterWell Primary Care raised its full-year net patient growth forecast to between 50,000 and 70,000, up from a prior range of 30,000 to 50,000.
In Medicaid, the company launched its Virginia contract in July, entering a new market for dual-eligible special needs plans.
Second-quarter GAAP pretax income fell to $741 million, down from $918 million in the same period last year. Adjusted pretax income was $1.017 billion, compared to $1.128 billion in Q2 2024. Year-to-date, Humana reported $2.432 billion in GAAP pretax income and $2.910 billion on an adjusted basis.
“We feel good about our solid performance in the first half of the year,” said president and CEO Jim Rechtin. “It reinforces our strategy to continue investing in improved outcomes, operational excellence and a better experience for our customers and investors.”
