Humana Reports Q4 Loss, Plans Cost Reductions

Humana Inc. reported a fourth-quarter adjusted earnings per share loss of $2.16, aligning with consensus estimates, while its revenue increased by 13.5% year-over-year to $29.21 billion, surpassing expectations. Despite the revenue increase, Humana's GAAP loss per share was $5.76, missing analyst projections. Looking forward, Humana forecasts its 2025 adjusted earnings per share to be around $16.25, slightly below analysts' expectations of $16.71. The company anticipates a slowdown in cost trends for 2025, attributed to non-recurring factors from the previous year, though high specialty drug costs remain a concern. Humana's management plans to cut costs aggressively and its pricing strategies have shown positive results despite losing approximately 30,000 D-SNP members due to redetermination. Analysts express cautious optimism about Humana's earnings potential from turning around its group MA book in 2026 and 2027.