Humana Inc.

Earnings Performance and Guidance: Humana reported a strong start to 2025, beating expectations for Q1, primarily driven by better-than-expected operational performance in the CenterWell segment (including primary care and pharmacy). The company reaffirmed its full-year adjusted EPS guidance of approximately $16.25 and insurance segment benefit ratio of 90.1% to 90.5%. The outperformance is attributed to timing related to certain expenses and investments, especially in Stars initiatives, which are expected to ramp up in Q2 and beyond.

Medicare Advantage Margin Target: The company reiterated its long-term target of achieving a 3% pre-tax margin in Medicare Advantage (MA) by 2027. However, they acknowledged that these margins will depend significantly on upcoming Stars ratings, which are currently subject to litigation. While the external environment and trends are seen as supportive, uncertainty remains around Stars outcomes.

CenterWell Growth and Integration: CenterWell demonstrated robust patient and membership growth through strategic acquisitions, with over 30 new centers added in the last year. The integration between insurance and CenterWell is generating better health outcomes and improving Stars performance, which supports the company's overall strategy and retains member satisfaction.