Home / Business and Economy / Humana's Profits Plunge Amid Concerns Over Declining Margins
Humana's Profits Plunge Amid Concerns Over Declining Margins
14 Nov
Summary
- Humana's stock down 13.1% in past year, underperforming S&P 500
- Q3 earnings beat expectations, but profits declined 22.1% year-over-year
- Analysts expect Humana's EPS to grow 5.4% in 2025, but concerns remain
As of November 14, 2025, Louisville, Kentucky-based Humana Inc. (HUM), a major healthcare company, has considerably underperformed the broader market over the past year. Shares of HUM have declined 13.1% since November 2024, while the S&P 500 Index has gained 14.1% during the same period.
On a year-to-date basis, Humana's stock is down 4.1%, compared to the S&P 500's 16.4% return. The company has also lagged behind the iShares U.S. Healthcare ETF's (IYH) marginal uptick over the past 52 weeks and 8.8% year-to-date rise.
Humana's recent Q3 2025 earnings release on November 5th triggered a 6% plunge in its stock price, despite the company delivering a better-than-expected performance. Humana's adjusted revenue of $32.6 billion and adjusted EPS of $3.24 surpassed the consensus estimates. However, its bottom line declined 22.1% from the prior-year quarter, raising concerns about declining profitability and narrowing margins.
For the current fiscal year, ending in December 2025, analysts expect Humana's EPS to grow 5.4% year-over-year to $17.08. The company's earnings surprise history has been mixed, with it topping consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 27 analysts covering the stock, the consensus rating is a "Moderate Buy," which is based on seven "Strong Buy," two "Moderate Buy," 17 "Hold," and one "Strong Sell" rating. This configuration is less bullish than a month ago, with no analyst suggesting a "Strong Sell" rating.
