Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

Humana looks like a large and profitable business, but the fundamental picture at the moment is rather restrained than clearly bullish. Its strength lies in the scale of revenue at 39.6 billion and net income of 1.19 billion, while EPS remains high, which supports the company’s underlying valuation. However, profitability is noticeably weaker than the industry: ROE, ROA, and ROI are significantly below the median, and profit, operating, and gross margins are also at low levels and have generally deteriorated over the year. This suggests that current profitability does not appear sustainably high, and the market is unlikely to expand the multiple aggressively. In valuation terms, the stock looks inexpensive on P/S and moderate on P/E, but this is partly explained by weak capital efficiency and margin pressure. P/B and P/FCF do not look extreme, so there is no clear signal of strong overvaluation, but there is also no pronounced discount relative to business quality. Debt load on a debt/equity basis is moderate, but current and quick liquidity are very weak, which increases financial risk and limits investor comfort. At the same time, the balance sheet remains large: cash position is high, equity is substantial, and assets are growing, which partially mitigates the risk profile. Dividend yield is low and has declined in recent periods, so the dividend factor does not provide meaningful support to the valuation. The trend shows that profitability and margins have weakened in recent quarters, while revenue and absolute profit remain at acceptable levels. Overall, this gives a mixed but rather cautious fundamental signal: the business is solid in scale and cash flow, but weak operating efficiency and liquidity limit revaluation potential. For an investor, this means the target should be slightly reduced, while maintaining a conservative view on short-term upside.

Humana Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Слабый индекс, значительно упал. Медведи сохранили, но резко ослабили уверенность в своих позициях.

Weak index, significantly down. The bears retained but sharply weakened their confidence in their positions.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Сильный индекс, без изменений. Приток средств в шорты на высоком уровне.

Strong index, flat. Inflow of funds into shorts at a high level.

Humana has strong scale and profitability, but weak margins, low liquidity, and deteriorating returns are limiting its revaluation potential.

Pre-market futures are flat-to-down ahead of today’s open, with overseas turbulence in the memory chip market reverberating on domestic shores. We also see something of a hesitation in trading ahead of this afternoon’s Fed decision on interest rates. The Dow is off -340 points at this hour, the tech-heavy Nasdaq is -7, while the S&P 500 and small-cap Russell 2000 are flat.
Saudi Arabia attacked Iran-backed forced in Iraq, demonstrating a further widening of the conflict that originally had been contained to the U.S. and Israel versus Iran. Spot oil prices are back up again this morning, but still just in the $80s per barrel (/bbl); a week ago, Brent crude had surged back over $100/bbl.
South Korean Finance Takes Measures to Calm Market
The finance minister of South Korea overnight has initiated caps on single-stock leveraged ETFs — a clear move to quiet market volatility related to SK Hynix (SKHY), one of the top memory chip producers in the world, which is a key component in the AI trade. The Korean stock market, KOSPI, was down another -6%, -15% over the last week.
This is reportedly the first time the country has applied the breaks to a particular stock trading entity, and it comes the day SK Hynix missed on both top and bottom lines in its first publicly trading earnings report this morning. Both operating profits and sales, however, rose triple-digits in the quarter. The company, one of the biggest suppliers to NVIDIA (NVDA), is down -1% on the news, -22% since its IPO less than three weeks ago.
FOMC Decision: No Longer a Slam Dunk?
The Federal Open Market Committee (FOMC) concludes its fifth meeting so far in 2026, and the first one where analysts have an inkling something might change on the Fed funds rate. Particularly, a quarter-points rate hike has been bandied about as a possibility today over the past week or so, likely due to inflation rates dancing up around +4% over the past couple months and uncertainties around the Strait of Hormuz.
With Fed Chair Kevin Warsh’s new methodology intentionally less transparent than the last three Fed chairs (Ben Bernanke, Janet Yellen and Jerome Powell), it’s tough to get a read on what results his leadership will glean this afternoon at 2pm ET. But from this vista, despite whether more hawkish members of the Fed cast their votes to raise interest rates, it’s hard to see a Warsh-led consensus bringing this about so early into his tenure. Unless he’s looking for a fight from President Trump.
Q2 Roundup at a Glance: PG, HUM & More
Procter & Gamble (PG) beat on fiscal Q4 earnings this morning by 2 cents per share, while missing slightly on its top line to $21.2 billion, above the $20.89 billion reported a year ago.
Health insurance giant Humana (HUM) posted a huge Q2 earnings beat this morning: $7.61 per share versus $6.22 in the Zacks consensus, for a +22.35% positive earnings surprise. Revenues of $40.89 billion outpaced expectations by +0.59%.
Biotech major Biogen (BIIB) provided one of the strongest quarterly reports of the morning, with Q2 earnings of $3.60 per share well above the $3.04 projected, on revenues of $2.74 billion which outperformed estimates by +9.4%.
Vans, Timberland and The North Face parent V.F. Corp. (VFC) posted its first earnings miss in the last four quarters: -$0.27 per share versus -$0.22 expected. Revenues of $1.67 billion was -0.29% below consensus.
After the close, we’ll see results from two key “Mag 7” companies, Microsoft (MSFT) and Meta Platforms (META), In addition, reports are also due from Qualcomm (QCOM) and Starbucks (SBUX), among others, this afternoon.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Biogen Inc. (BIIB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Q2 Earnings Season in Full Swing

Humana Inc. HUM reported second-quarter 2026 adjusted earnings of $7.61 per share, which beat the Zacks Consensus Estimate by 22.4%. The bottom line rose 21.4% year over year.
Adjusted revenues improved 26.2% year over year to $40.9 billion. The top line surpassed the consensus mark by 0.6%.
The strong quarterly results benefited on the back of premium gains and a robust performance from the CenterWell segment, which saw a revenue jump supported by its primary care business. A rise in overall medical membership also contributed to the upside. However, the upside was partly offset by escalating operating expenses and a deteriorating benefit ratio.
Humana Inc. Price, Consensus and EPS Surprise
HUM’s Q2 Operational Update
Humana’s premiums totaled $38.8 billion, which advanced 26.4% year over year, and surpassed the Zacks Consensus Estimate of $38.6 billion and our estimate of $38.1 billion. Services revenues rose 27.1% year over year to $1.8 billion, beating the consensus mark of $1.7 billion. Investment income of $253 million fell 7% year over year in the quarter under review. However, the metric beat the consensus mark of $235.3 million and our estimate of $241.9 million.
The benefit ratio came in at 91.1%, which deteriorated 140 basis points (bps) year over year. Total operating expenses increased 26.3% year over year to $39.5 billion, higher than our estimate of $38.9 billion. The year-over-year increase was due to higher benefits and operating costs. The adjusted operating cost ratio of 9.7% improved 120 bps year over year.
HUM’s net income increased 27.6% year over year to $693 million but beat our estimate of $562.1 million.
Q2 Segmental Update of HUM
Insurance
The segment’s revenues rose 25.9% year over year to $39.1 billion in the second quarter on the back of improved per-member premiums derived from HUM’s Medicare and stand-alone PDP businesses, supported by improved Medicare Advantage benchmark funding from the Centers for Medicare and Medicaid Services and a higher Part D direct subsidy tied to the IRA.
Adjusted operating income grew 7% year over year to $824 million. The benefit ratio deteriorated 130 bps year over year to 91.2%. The operating cost ratio of 7.1% improved 120 bps year over year.
Total medical membership of the segment was 17.9 million as of June 30, 2026, which rose 20.7% year over year. The metric beat the Zacks Consensus Estimate of 17.5 million and our estimate of 17 million.
CenterWell
The unit recorded revenues of $6.8 billion in the quarter under review, which improved 22.6% year over year and surpassed the Zacks Consensus Estimate of $6.3 billion. The metric benefited from higher revenues stemming from the company’s primary care business.
Adjusted operating income rose 27.2% year over year to $514 million. The operating cost ratio of 92.4% improved 30 bps year over year, driven by the ongoing maturation of the v28 risk model update within the company’s primary care business and its cost-cutting and transformation strategy.
Humana’s Financial Update (As of June 30, 2026)
Humana exited the second quarter with cash and cash equivalents of $6.9 billion, which rose 64.1% from the 2025-end level. Total assets of $57.2 billion increased 16.9% from the figure at 2025-end.
Long-term debt amounted to $12 billion, down 3.2% from the figure as of Dec. 31, 2025. Debt to capitalization deteriorated 200 bps year over year to 42.7% at the second-quarter end.
Total stockholders’ equity of $19.3 billion advanced 8.8% from the 2025-end figure.
HUM generated net cash from operations of $3.2 billion in the first half of 2026, which more than doubled year over year.
HUM’s Capital Deployment Update
Humana bought back shares worth $108 million in the first half of 2026. It also paid dividends of $214 million during the same period.
2026 View by HUM
Revenues are still projected to be a minimum of $160 billion, which implies a 23.4% increase from the 2025 reported figure. The Insurance segment’s revenues are expected to continue to be forecasted at a minimum of $155 billion. Revenues of the CenterWell segment are still expected to be at a minimum of $25 billion.
Adjusted EPS is still projected to be at least $9, which indicates a 47.5% decline from the 2025 figure. GAAP EPS is now projected to be at least $6.52, down from the previously expected guidance of at least $8.36.
Management still anticipates Individual Medicare Advantage membership to witness growth of around 25% in 2026. Group Medicare Advantage membership is still expected to record an increase of roughly 150,000.
Membership from the Individual Medicare stand-alone PDP is still expected to increase around 1,000,000 this year. State-based contracts are still anticipated to witness membership growth within 25,000-100,000.
The GAAP benefit ratio for the Insurance segment is still likely to be 92.75%, with a variability margin of plus or minus 25 basis points. The GAAP consolidated adjusted operating cost ratio is still expected to be at 10%, with a variability margin of plus or minus 25 basis points.
GAAP cash flow from operations is still estimated within $2.5-$2.9 billion. Meanwhile, capital expenditures are still projected to be roughly $650 million. The adjusted effective tax rate is expected to be around 25.5%, while the weighted average share count is anticipated at around 121 million.
HUM’s Zacks Rank
HUM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
How Did Peers Perform?
Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed:
Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.
Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.
UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Humana Q2 Earnings Beat Estimates on Medical Membership Growth

Wednesday, July 29th, 2026
Pre-market futures are flat-to-down ahead of today’s open, with overseas turbulence in the memory chip market reverberating on domestic shores. We also see something of a hesitation in trading ahead of this afternoon’s Fed decision on interest rates. The Dow is off -340 points at this hour, the tech-heavy Nasdaq is -7, while the S&P 500 and small-cap Russell 2000 are flat.
Saudi Arabia attacked Iran-backed forced in Iraq, demonstrating a further widening of the conflict that originally had been contained to the U.S. and Israel versus Iran. Spot oil prices are back up again this morning, but still just in the $80s per barrel (/bbl); a week ago, Brent crude had surged back over $100/bbl.
South Korean Finance Takes Measures to Calm Market
The finance minister of South Korea overnight has initiated caps on single-stock leveraged ETFs — a clear move to quiet market volatility related to SK Hynix SKHY, one of the top memory chip producers in the world, which is a key component in the AI trade. The Korean stock market, KOSPI, was down another -6%, -15% over the last week.
This is reportedly the first time the country has applied the breaks to a particular stock trading entity, and it comes the day SK Hynix missed on both top and bottom lines in its first publicly trading earnings report this morning. Both operating profits and sales, however, rose triple-digits in the quarter. The company, one of the biggest suppliers to NVIDIA NVDA, is down -1% on the news, -22% since its IPO less than three weeks ago.
FOMC Decision: No Longer a Slam Dunk?
The Federal Open Market Committee (FOMC) concludes its fifth meeting so far in 2026, and the first one where analysts have an inkling something might change on the Fed funds rate. Particularly, a quarter-points rate hike has been bandied about as a possibility today over the past week or so, likely due to inflation rates dancing up around +4% over the past couple months and uncertainties around the Strait of Hormuz.
With Fed Chair Kevin Warsh’s new methodology intentionally less transparent than the last three Fed chairs (Ben Bernanke, Janet Yellen and Jerome Powell), it’s tough to get a read on what results his leadership will glean this afternoon at 2pm ET. But from this vista, despite whether more hawkish members of the Fed cast their votes to raise interest rates, it’s hard to see a Warsh-led consensus bringing this about so early into his tenure. Unless he’s looking for a fight from President Trump.
Q2 Roundup at a Glance: PG, HUM & More
Procter & Gamble PG beat on fiscal Q4 earnings this morning by 2 cents per share, while missing slightly on its top line to $21.2 billion, above the $20.89 billion reported a year ago. For more on PG’s earnings, click here.
Health insurance giant Humana HUM posted a huge Q2 earnings beat this morning: $7.61 per share versus $6.22 in the Zacks consensus, for a +22.35% positive earnings surprise. Revenues of $40.89 billion outpaced expectations by +0.59%. For more on HUM’s earnings, click here.
Biotech major Biogen BIIB provided one of the strongest quarterly reports of the morning, with Q2 earnings of $3.60 per share well above the $3.04 projected, on revenues of $2.74 billion which outperformed estimates by +9.4%. For more on BIIB’s earnings, click here.
Vans, Timberland and The North Face parent V.F. Corp. VFC posted its first earnings miss in the last four quarters: -$0.27 per share versus -$0.22 expected. Revenues of $1.67 billion was -0.29% below consensus. For more on VFC’s earnings, click here.
After the close, we’ll see results from two key “Mag 7” companies, Microsoft MSFT and Meta Platforms META, In addition, reports are also due from Qualcomm QCOM and Starbucks SBUX, among others, this afternoon.
Questions or comments about this article and/or author? Click here>>
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Investors Await Fed Decision Today

Humana (HUM) came out with quarterly earnings of $7.61 per share, beating the Zacks Consensus Estimate of $6.22 per share. This compares to earnings of $6.27 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +22.35%. A quarter ago, it was expected that this health insurer would post earnings of $9.97 per share when it actually produced earnings of $10.31, delivering a surprise of +3.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Humana, which belongs to the Zacks Medical - HMOs industry, posted revenues of $40.89 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.59%. This compares to year-ago revenues of $32.39 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Humana shares have added about 51.8% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Humana?
While Humana has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Humana was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.22 on $40.87 billion in revenues for the coming quarter and $9.25 on $162.6 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - HMOs is currently in the top 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, The Joint Corp. (JYNT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +283.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
The Joint Corp.'s revenues are expected to be $14.7 million, up 10.7% from the year-ago quarter.
Should You Invest in Humana Inc. (HUM)?
Before you invest in Humana Inc. (HUM), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Humana (HUM) Q2 Earnings and Revenues Top Estimates

(RTTNews) - Humana Inc (HUM) revealed earnings for its second quarter that Increases, from the same period last year
The company's earnings totaled $694 million, or $5.73 per share. This compares with $545 million, or $4.51 per share, last year.
Excluding items, Humana Inc reported adjusted earnings of $1.248 billion or $7.61 per share for the period.
The company's revenue for the period rose 26.2% to $40.888 billion from $32.388 billion last year.
Humana Inc earnings at a glance (GAAP) :
-Earnings: $694 Mln. vs. $545 Mln. last year. -EPS: $5.73 vs. $4.51 last year. -Revenue: $40.888 Bln vs. $32.388 Bln last year.
FY 2026 Earnings Guidance: Adjusted EPS guidance of at least $9.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Humana Inc Profit Climbs In Q2

For Immediate Release
Chicago, IL – July 28, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CVS Health Corp. CVS, Cardinal Health, Inc. CAH, Humana Inc. HUM and ACADIA Pharmaceuticals Inc. ACAD.
Here are highlights from Monday’s Analyst Blog:
4 Medical Stocks with the Right Setup for Q2 Earnings Beats
The second-quarter 2026 earnings season is picking up pace for the Medical sector, and the first wave of results points to a mixed but encouraging backdrop. Companies across managed care, hospitals, medical devices and healthcare technology are benefiting from better pricing discipline, improving control over medical costs, healthy patient demand and continued investment in technology. At the same time, these tailwinds are being partially offset by policy uncertainty, cost inflation, tariff impacts, cautious guidance and high investor expectations.
Against this backdrop, our research highlights four companies that look well positioned heading into earnings: CVS Health Corp., Cardinal Health, Inc., Humana Inc. and ACADIA Pharmaceuticals Inc. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 12.3% decline in earnings for the second quarter, even as revenues are anticipated to rise by 4.9%. The disconnect reflects ongoing margin pressure rather than weakening demand.
Factors at Play for Medical Stocks in Q2
The medical sector spans a wide and tightly linked network of businesses, from hospitals and physician groups to nursing care facilities, insurers, drugmakers, device companies, and outpatient and home care providers. Demand remained resilient during the quarter, supported by an aging population, greater use of medical services and continued need for prescription drugs and healthcare products.
Margins, however, remained under pressure. Companies continued investing in digital platforms, automation and AI-enabled tools to improve efficiency and patient care, but those investments increased near-term expenses. Labor costs also stayed elevated, particularly for hospitals and other provider organizations that rely heavily on skilled workers.
Health insurers faced another challenging quarter as elevated medical utilization, reimbursement constraints and regulatory changes continued to weigh on profitability. Even so, stronger pricing discipline, premium increases, scaling back less attractive products and tighter cost management helped offset part of the pressure and supported gradual margin improvement for some companies.
Hospitals and healthcare facilities continued to benefit from steady patient volumes, while higher revenue per admission provided an additional lift where pricing remained favorable. Even so, rising labor and supply costs limited the pace of margin expansion.
Steady prescription utilization and favorable branded drug trends supported pharmaceutical companies and distributors during the quarter. Across the sector, wider adoption of AI, analytics and automation remained a key long-term growth driver, improving workflows, supporting clinical decisions and creating opportunities for greater operating efficiency.
How to Identify Potential Outperformers?
Spotting healthcare stocks poised for an earnings beat is not easy in today’s crowded market. But our proprietary methodology cuts through the noise, pinpointing companies with strong potential to outperform. Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical Sector
One can start with Humana, which is one of the largest health care plan providers in the United States. Headquartered in Louisville, KY, the company’s second-quarter earnings are expected to have benefited from higher premiums (25.6% year-over-year growth expected), insurance and specialty membership and strength in the CenterWell unit.
The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The consensus estimate for Humana’s second-quarter earnings is pegged at $6.22 per share, which improved by 5 cents over the past month. The consensus mark for revenues of $40.65 billion indicates a 25.5% increase. HUM has an Earnings ESP of +1.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
It beat earnings estimates in three of the past four quarters and missed once, with an average of 3.8%.
You may also watch CVS Health, which is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. Headquartered in Woonsocket, RI, the company’s second-quarter earnings are expected to have benefited from increased net investment income (3.3% growth expected).
The Zacks Consensus Estimate for products revenues indicates 2.8% year-over-year growth. The consensus estimate for CVS Health’s second-quarter earnings is pegged at $1.87 per share, which indicates 3.3% year-over-year growth. The consensus mark for revenues of $100.18 billion predicts a 1.3% increase. CVS has an Earnings ESP of +1.42% and a Zacks Rank #2.
It beat earnings estimates in all the past four quarters, with an average of 16.8%.
Dublin, OH-based Cardinal Health is one of the world’s largest healthcare services and products providers. It is witnessing brand and specialty pharmaceutical sales growth from existing customers and Cardinal Health brand growth. It has an Earnings ESP of +1.24% and a Zacks Rank #2.
The consensus mark for fourth-quarter fiscal 2026 revenues is pegged at $65.61 billion, indicating 9.1% year-over-year growth. The EPS estimate of $2.42 signals a 16.4% year-over-year jump. The Zacks Consensus Estimate for the fiscal fourth-quarter Pharmaceutical and Specialty Solutions revenues indicates 10.1% year-over-year growth. The same for Global Medical Products and Distribution signals a 2% increase.
It beat earnings estimates in each of the past four quarters, the average surprise being 10.3%.
Finally, we have San Diego, CA-based ACADIA Pharmaceuticals, a biopharmaceutical company developing innovative medicines to address central nervous system (CNS) disorders and rare diseases. Its second quarter results are expected to have been driven by contributions from Daybue and continued growth in Nuplazid's market share.
The consensus estimate for Daybue product sales suggests a 15.8% increase from a year ago. The same for Nuplazid signals a 77% increase. The Zacks Consensus Estimate for ACADIA Pharmaceuticals’ bottom line for the to-be-reported quarter is pegged at 6 cents per share, which improved by a penny over the past week. The consensus mark for revenues is pegged at $293.82 million. ACAD has an Earnings ESP of +25.00% and a Zacks Rank #2.
It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 20.8%.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights CVS Health, Cardinal Health, Humana and ACADIA Pharmaceuticals

The second-quarter 2026 earnings season is picking up pace for the Medical sector, and the first wave of results points to a mixed but encouraging backdrop. Companies across managed care, hospitals, medical devices and healthcare technology are benefiting from better pricing discipline, improving control over medical costs, healthy patient demand and continued investment in technology. At the same time, these tailwinds are being partially offset by policy uncertainty, cost inflation, tariff impacts, cautious guidance and high investor expectations.
Against this backdrop, our research highlights four companies that look well positioned heading into earnings: CVS Health Corporation CVS, Cardinal Health, Inc. CAH, Humana Inc. HUM and ACADIA Pharmaceuticals Inc. ACAD. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 12.3% decline in earnings for the second quarter, even as revenues are anticipated to rise by 4.9%. The disconnect reflects ongoing margin pressure rather than weakening demand.
Factors at Play for Medical Stocks in Q2
The medical sector spans a wide and tightly linked network of businesses, from hospitals and physician groups to nursing care facilities, insurers, drugmakers, device companies, and outpatient and home care providers. Demand remained resilient during the quarter, supported by an aging population, greater use of medical services and continued need for prescription drugs and healthcare products.
Margins, however, remained under pressure. Companies continued investing in digital platforms, automation and AI-enabled tools to improve efficiency and patient care, but those investments increased near-term expenses. Labor costs also stayed elevated, particularly for hospitals and other provider organizations that rely heavily on skilled workers.
Health insurers faced another challenging quarter as elevated medical utilization, reimbursement constraints and regulatory changes continued to weigh on profitability. Even so, stronger pricing discipline, premium increases, scaling back less attractive products and tighter cost management helped offset part of the pressure and supported gradual margin improvement for some companies.
Hospitals and healthcare facilities continued to benefit from steady patient volumes, while higher revenue per admission provided an additional lift where pricing remained favorable. Even so, rising labor and supply costs limited the pace of margin expansion.
Steady prescription utilization and favorable branded drug trends supported pharmaceutical companies and distributors during the quarter. Across the sector, wider adoption of AI, analytics and automation remained a key long-term growth driver, improving workflows, supporting clinical decisions and creating opportunities for greater operating efficiency.
How to Identify Potential Outperformers?
Spotting healthcare stocks poised for an earnings beat is not easy in today’s crowded market. But our proprietary methodology cuts through the noise, pinpointing companies with strong potential to outperform. Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical Sector
One can start with Humana, which is one of the largest health care plan providers in the United States. Headquartered in Louisville, KY, the company’s second-quarter earnings are expected to have benefited from higher premiums (25.6% year-over-year growth expected), insurance and specialty membership and strength in the CenterWell unit.
The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The consensus estimate for Humana’s second-quarter earnings is pegged at $6.22 per share, which improved by 5 cents over the past month. The consensus mark for revenues of $40.65 billion indicates a 25.5% increase. HUM has an Earnings ESP of +1.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
It beat earnings estimates in three of the past four quarters and missed once, with an average of 3.8%.
Humana Inc. Price and EPS Surprise
You may also watch CVS Health, which is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. Headquartered in Woonsocket, RI, the company’s second-quarter earnings are expected to have benefited from increased net investment income (3.3% growth expected).
The Zacks Consensus Estimate for products revenues indicates 2.8% year-over-year growth. The consensus estimate for CVS Health’s second-quarter earnings is pegged at $1.87 per share, which indicates 3.3% year-over-year growth. The consensus mark for revenues of $100.18 billion predicts a 1.3% increase. CVS has an Earnings ESP of +1.42% and a Zacks Rank #2.
It beat earnings estimates in all the past four quarters, with an average of 16.8%.
CVS Health Corporation Price and EPS Surprise
Dublin, OH-based Cardinal Health is one of the world’s largest healthcare services and products providers. It is witnessing brand and specialty pharmaceutical sales growth from existing customers and Cardinal Health brand growth. It has an Earnings ESP of +1.24% and a Zacks Rank #2.
The consensus mark for fourth-quarter fiscal 2026 revenues is pegged at $65.61 billion, indicating 9.1% year-over-year growth. The EPS estimate of $2.42 signals a 16.4% year-over-year jump. The Zacks Consensus Estimate for the fiscal fourth-quarter Pharmaceutical and Specialty Solutions revenues indicates 10.1% year-over-year growth. The same for Global Medical Products and Distribution signals a 2% increase.
It beat earnings estimates in each of the past four quarters, the average surprise being 10.3%.
Cardinal Health, Inc. Price and EPS Surprise
Finally, we have San Diego, CA-based ACADIA Pharmaceuticals, a biopharmaceutical company developing innovative medicines to address central nervous system (CNS) disorders and rare diseases. Its second quarter results are expected to have been driven by contributions from Daybue and continued growth in Nuplazid's market share.
The consensus estimate for Daybue product sales suggests a 15.8% increase from a year ago. The same for Nuplazid signals a 77% increase. The Zacks Consensus Estimate for ACADIA Pharmaceuticals’ bottom line for the to-be-reported quarter is pegged at 6 cents per share, which improved by a penny over the past week. The consensus mark for revenues is pegged at $293.82 million. ACAD has an Earnings ESP of +25.00% and a Zacks Rank #2.
It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 20.8%.
ACADIA Pharmaceuticals Inc. Price and EPS Surprise
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Medical Stocks With the Right Setup for Q2 Earnings Beats

Humana Inc. HUM is set to report second-quarter 2026 results on July 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.22 per share on revenues of $40.65 billion.
The second-quarter earnings estimate has witnessed three upward revisions and no movement in the opposite direction over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 0.8%. Yet, the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 25.5%.
For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.60 billion, implying a rise of 25.3% year over year. However, the consensus mark for current-year EPS is pegged at $9.25, implying a plunge of around 46% on a year-over-year basis.
HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
Humana Inc. Price and EPS Surprise
Q2 Earnings Whispers for HUM
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Humana has an Earnings ESP of +1.71% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping HUM’s Q2 Results?
The Zacks Consensus Estimate for HUM’s second-quarter premiums indicates a 25.6% increase from the prior-year quarter’s reported figure, whereas our model predicts 24% growth. We expect total Medicare to witness 26.6% growth in the quarter under review. Similarly, the consensus mark for service revenues signals a 22.3% increase from a year ago, whereas our model predicts a nearly 16% jump.
Also, the Zacks Consensus Estimate for insurance membership predicts a 18.2% year-over-year growth, whereas specialty membership is expected to rise 3.7%.
The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The same for the CenterWell unit predicts a 12.8% growth from the year-ago level. The above-mentioned factors are expected to have positioned the company for an earnings beat in the second quarter.
However, the consensus estimate indicates that Humana’s investment income will see a 13.5% drop from the year-ago level. We expect total operating costs to increase 24.4% in the second quarter, bringing the figure above $38.9 billion. This is likely to have led to a year-over-year decline in the bottom line.
The consensus mark for insurance benefits expense ratio is pegged at 91.3% for the to-be-reported quarter, deteriorating from 89.9% a year ago. These are likely to have partially offset the positives.
How Did Peers Perform?
Several healthcare companies, including UnitedHealth Group Incorporated UNH, Molina Healthcare, Inc. MOH and Elevance Health, Inc. ELV, have already reported their financial results for the June quarter of 2026. Here’s how they performed:
UnitedHealth reported second-quarter 2026 adjusted EPS of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Its strong quarterly results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in UNH’s Optum Health, Optum Rx and declining risk-based membership partially offset the positives.
Molina reported second-quarter 2026 adjusted EPS of $1.51, which beat the Zacks Consensus Estimate by 10.2%. But the bottom line declined 72.4% from the year-ago period's level. MOH’s earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.
Elevance reported second-quarter 2026 adjusted EPS of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year.The quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The upside was partly offset by a decline in ELV’s overall medical membership and an elevated expense level.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Humana Beat Q2 Earnings Estimates on Growing Premiums?

Molina Healthcare, Inc. MOH reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level.
Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%.
Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
MOH’s Q2 Operational Update
Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions.
As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%.
Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million.
The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%.
Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million.
MOH’s Q2 Financial Update
Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end.
Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level.
Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025.
Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period.
MOH’s 2026 Guidance
The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.
Management expects 2026 GAAP earnings of at least $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share.
MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million.
MOH’s Zacks Rank & Key Picks
Molina currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are Humana Inc. HUM, currently sporting a Zacks Rank #1 (Strong Buy), and CVS Health Corporation CVS and Cencora, Inc. COR, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Humana is set to report second-quarter 2026 results on July 29, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $6.22 per share, which has witnessed three upward revisions over the past 60 days, with no movement in the opposite direction. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 3.8%. The consensus estimate for Humana’s second-quarter revenues is pinned at $40.65 billion, indicating a 25.5% year-over-year increase.
CVS Health is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, indicating a 3.3% year-over-year increase. The company beat on earnings in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for CVS Health’s second-quarter revenues is pinned at $100.18 billion, indicating a 1.3% year-over-year increase.
Cencora is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $4.37 per share, indicating a 9.3% year-over-year increase. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 1.6%. The consensus estimate for Cencora’s second-quarter revenues is pinned at $84.89 billion, indicating a 5.2% year-over-year increase.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MOH Q2 Earnings Beat on Lower Operating Expenses, 2026 EPS View Raised

Healthcare plan provider Centene Corporation CNC is set to report second-quarter 2026 results on July 28, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 89 cents per share on revenues of $47.53 billion.
The second-quarter earnings estimate remained stable over the past 60 days. The bottom-line projection indicates a year-over-year improvement from a loss of 16 cents per share. However, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 2.5%.
For 2026, the Zacks Consensus Estimate for Centene’s revenues is pegged at $190.97 billion, implying a fall of 2% year over year. Yet, the consensus mark for 2026 EPS is pegged at $3.46, signaling a growth of 66.4% year over year.
Centenebeat earnings estimates in three of the last four quarters and missed once, with the average surprise being 74.9%. This is depicted in the figure below.
Centene Corporation Price and EPS Surprise
Q2 Earnings Whispers for Centene
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
CNC has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping Centene’s Q2 Results?
The Zacks Consensus Estimate for the company’s total commercial memberships indicates a 39.1% year-over-year decrease, primarily due to a decline in the commercial marketplace. The consensus estimate for the company’s total Medicaid memberships indicates a 4.6% decline from a year ago.
As such, the Zacks Consensus Estimate for total membership indicates a 7.6% year-over-year decline, which reflects its portfolio optimization efforts. However, the consensus mark for Medicare PDP memberships signals 12.1% growth from the year-ago quarter.
The consensus estimate projects the company’s premium growth at only 1.8% year over year. The consensus mark for the company’s investment and other income indicates a 3.2% year-over-year decline from $371 million. Moreover, the projection for service revenues indicates a 0.6% fall from the year-ago quarter’s $727 million. These are likely to have affected the second quarter top line.
Nevertheless, due to its cost-curbing efforts, better pricing and portfolio optimization, the bottom line is likely to have improved. The Zacks Consensus Estimate for the total health benefits ratio is pegged at 91.5%, down from 93% in the year-ago period, meaning a higher portion of premiums remaining in hand after paying claims.
CNC’s Price Performance & Valuation
Centene's stock has gained 64.3% in the year-to-date period compared with the industry’s growth of 31%. Its peers, such as Humana Inc. HUM and Molina Healthcare, Inc. MOH, have jumped 57.9% and 30.5%, respectively, during this time. Meanwhile, the S&P 500 has only increased 9.5%.
YTD Price Performance – CNC, HUM, MOH, Industry & S&P 500
Now, let’s look at the value Centene offers investors at current levels.
CNC is trading at 16.91X forward 12-month earnings, above its five-year median of 11.31X. But it is still below the industry’s average of 18.12X. In comparison, Humana and Molina Healthcare are currently trading at 31.75X and 31.80X, respectively.
How Should You Play CNC Stock Now?
The company has made meaningful progress in restoring profitability through disciplined pricing, portfolio optimization and cost-control initiatives following last year's setback. A healthier medical benefit ratio, stronger cash generation and improving performance in its Medicaid and Medicare businesses provide reasons for optimism, while the stock's sharp year-to-date rally reflects growing investor confidence in the turnaround.
However, expectations have also become more demanding. Membership declines tied to portfolio optimization are likely to weigh on revenue growth, and Centene remains exposed to policy changes affecting government-sponsored healthcare programs. Elevated operating costs, despite signs of moderation, and below-average capital efficiency also suggest that the turnaround is still a work in progress.
Given these factors, existing shareholders may prefer to hold the stock and monitor management's commentary on medical costs, reimbursement trends and membership growth after the earnings release. New investors, meanwhile, may benefit from waiting for greater clarity on the company's execution and full-year outlook before initiating positions.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	HUM	Industry	HUM	Industry	Volume, $
Yesterday 387.4 - 399.6	18.48	17.97	7.94	1.33	159.04M
Week 387.4 - 407.3	17.05	12.98	13.10	3.80	1.06B
Month 372.6 - 428.9	25.18	19.06	14.68	6.45	6.42B
3 Months 213.9 - 428.9	117.94	44.57	26.14	14.93	19.49B
6 Months 163.1 - 428.9	113.01	55.19	38.67	21.68	37.84B
Year 163.1 - 428.9	102.76	48.75	49.38	37.67	73.04B
3 years 163.1 - 530.5	4.41	33.88	73.57	69.50	215.79B
5 years 163.1 - 571.3	0.68	46.38	84.48	98.14	330.49B
All time 4.8 - 571.3	1,389.91	64.81	—	—	295.19B

Humana Inc.

Price and volatility history

Risk ratios