By Nicholas G. Miller

Humana reported lower third-quarter profit and slashed full-year earnings guidance as medical costs continue to surge, dragging down margins for the company's core Medicare Advantage business.

The health-insurance company on Wednesday reported net income of $1.62 a share, down from $3.98 a share the year prior.

Adjusted earnings were $3.24 a share. Analysts expected $2.93.

Revenue rose to $32.65 billion from $29.4 billion. Wall Street expected $32 billion.

The company's benefit ratio, which measures the proportion of premiums paid to cover medical costs, rose to 91.1% from 89.9% a year earlier.

Humana lowered its full-year earnings forecast to $12.26 a share, down from its previous guidance of $13.77 a share. It reiterated its adjusted-earnings outlook of $17 a share.

Analysts see earnings of $14.09 a share and adjusted earnings of $17.07 a share.

The Louisville, Ky., company said it now expects a decline of about 425,000 Medicare Advantage members for the year, up from its previous forecast of a decline of up to 500,000 members.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

November 05, 2025 06:22 ET (11:22 GMT)

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