Humana Inc. (HUM) AI Stock Analysis

Humana Inc., along with its subsidiaries, operates as a health and well-being company within the United States. Its operations span three primary segments: Retail, Group and Specialty, and Healthcare Services. The company provides medical and supplemental benefit plans, including contracts with the Centers for Medicare and Medicaid Services (CMS) for prescription drug plans, as well as state contracts for Medicaid, dual eligible, and long-term support services. Humana also offers commercial fully insured medical, dental, vision, and administrative services products, and serves military personnel through its TRICARE T2017 East Region contract. Additionally, it operates pharmacy solutions, provider services, and home solutions services.

Humana grew revenue from $83.65B in FY2021 to $129.66B in FY2025, reflecting a 5-year revenue CAGR of 10.9%. Annual revenue growth reached 10.1% in FY2025, but profitability narrowed as gross margin declined from 17.3% in FY2021 to 14.5% in FY2025, and operating margin dropped from 4.1% to 1.1%. Net income decreased from $2.93B in FY2021 to $1.19B in FY2025, leaving net margin at 0.9%. For the trailing twelve months, revenue was $145.68B with EPS of $10.58. In the latest quarter ended June 30, 2026, quarterly revenue grew 26.2% year-over-year and quarterly earnings rose 27.1%.

As of June 30, 2026, Humana held $23.87B in cash and short-term investments against $14.25B in total debt, yielding net cash of $9.62B. Total assets stood at $57.20B and shareholders' equity was $19.21B, resulting in a debt-to-equity ratio of 0.74 and a current ratio of 1.74. In FY2025, operating cash flow was $921.0M and free cash flow was $375.0M. During FY2025, cash allocations included $546.0M for capital expenditures, $151.0M for share buybacks, and $430.0M for dividends paid.

Humana trades at a trailing P/E of 39.1x and a forward P/E of 24.3x, compared to the median of its S&P 500 Healthcare peers at 27.2x trailing and 16.5x forward. Its price-to-sales multiple is 0.3x, below the peer median of 3.4x, while its price-to-book ratio is 2.3x. Over the past year, Humana returned 56.3%, outperforming the S&P 500 (SPY) return of 16.8%. However, its 5-year return of -1.7% lagged the S&P 500 return of 83.0%. The stock trades at $413.16, which is 37.5% above its 200-day average.

Humana pays a quarterly dividend with an annual forward payout of $3.54 per share, translating to a dividend yield of 0.86%. The dividend payout ratio stands at 20.6%. The company has paid dividends for 16 consecutive years and achieved a 5-year annualized dividend growth rate of 7.2%. Its last ex-dividend date is October 30, 2026.

Wall Street coverage includes 13 Strong Buy, 3 Buy, 9 Hold, and 1 Strong Sell ratings. The mean price target is $465.12, representing a 12.6% upside over the last close of $413.16. For the fiscal year ending December 31, 2026, analysts estimate revenue of $162.74B and an EPS of $9.16, a decline of 46.6%. For the following fiscal year, 26 analysts project EPS to rebound 86.6% to $17.09 on revenue of $168.69B. Humana beat EPS estimates in all 4 of its last 4 quarters, with the next earnings date scheduled for November 6, 2026.

This page is an AI-written research summary of Humana Inc. (HUM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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