Humana (HUM) Net Margin Stuck Near 1% Keeps Long Term Growth Narratives Under Scrutiny

Simply Wall St.

Feb 12

Humana (HUM) has put out its latest FY 2025 numbers with third quarter revenue of US$32.6b, basic EPS of US$1.62 and net income of US$195m, giving investors a fresh look at how the year is tracking. ...

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The company has seen quarterly revenue move from US$29.2b in Q4 2024 to US$32.1b in Q1 2025, US$32.4b in Q2 2025 and US$32.6b in Q3 2025, while basic EPS shifted from a loss of US$5.75 in Q4 2024 to US$10.31, US$4.52 and US$1.62 across the first three quarters of 2025. Put together with trailing...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"HUM.AU":"HUMM GROUP LTD"},"translate_title":"Humana(HUM)净利润率徘徊在1%附近，长期增长叙事受到密切关注","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HUM.AU":1.5},"content_text":"Humana (HUM) has put out its latest FY 2025 numbers with third quarter revenue of US$32.6b, basic EPS of US$1.62 and net income of US$195m, giving investors a fresh look at how the year is tracking. The company has seen quarterly revenue move from US$29.2b in Q4 2024 to US$32.1b in Q1 2025, US$32.4b in Q2 2025 and US$32.6b in Q3 2025, while basic EPS shifted from a loss of US$5.75 in Q4 2024 to US$10.31, US$4.52 and US$1.62 across the first three quarters of 2025. Put together with trailing EPS of US$10.72 and a current share price of US$175.40, this points to relatively thin margins, where even small changes in profitability can matter for how investors interpret this update. See our full analysis for Humana. With the headline figures on the table, the next step is to see how these results line up against the widely held narratives around Humana’s growth prospects, risks and long term earnings power. See what the community is saying about Humana NYSE:HUM Earnings & Revenue History as at Feb 2026 AdvertisementMargins Thin With 1% Net Profit Over US$126.4b In Sales  Over the last 12 months, Humana generated about US$126.4b in revenue with net profit of roughly US$1.3b, which works out to a 1% net margin compared with 1.2% a year earlier. Bulls point to long term earnings potential, yet the current 1% margin and five year earnings decline of about 17.5% per year leave a gap between today’s reality and that view.\n     The bullish narrative leans on Medicare Advantage and CenterWell growth plus technology and value based care to support higher margins over time, while the reported numbers still show relatively low profitability. At the same time, the large one off loss of US$745.0m in the last year means part of the weak margin picture is tied to a specific event rather than ongoing trading, which some bullish investors may see as less reflective of the underlying business.    Humana's recent margin profile is exactly what bullish investors are debating, so if you want to see how the optimistic case is laid out in detail, check out the full bull thesis here: 🐂 Humana Bull Case EPS Swings And A US$745m One Off Loss Keep Bears Focused On Risk  Quarterly basic EPS moved from a loss of US$5.75 in Q4 2024 to US$10.31 in Q1 2025, US$4.52 in Q2 and US$1.62 in Q3, while the trailing period also includes a one off loss of US$745.0m that weighs on reported earnings. Bears argue that heavy reliance on Medicare Advantage and rising healthcare costs threaten earnings stability, and the recent EPS volatility gives them concrete numbers to point to.\n     Five year earnings falling about 17.5% per year line up with the cautious view that past profit trends have not been supportive, even with revenue running at roughly 8.5% a year. Concerns about medical cost pressure in areas like oncology and specialty pharmacy are echoed by the tight 1% net margin, which leaves limited room if costs move higher without matching revenue growth.    If you are trying to stress test the downside story against the latest numbers, it is worth reading the full bear case set out here: 🐻 Humana Bear Case P/E Of 16.3x And 2.02% Yield Versus DCF Fair Value Of US$1,026.71  Humana trades on a P/E of 16.3x at a share price of US$175.40, compared with a cited DCF fair value of about US$1,026.71 per share, a healthcare industry average P/E of 23.1x, a peer average of 20.4x and a dividend yield around 2.02%. Consensus narrative highlights earnings growth forecasts of roughly 27.5% per year and analyst price targets around US$282.13, and the current valuation data give that balanced view plenty to work with.\n     The gap between the P/E of 16.3x and both industry and peer averages supports the idea that the market is assigning a lower multiple despite those higher earnings growth expectations. At the same time, the 1% trailing margin and the one off US$745.0m loss explain why some investors may be cautious even though the DCF fair value and analyst target of about US$282.13 sit well above the present US$175.40 share price.     Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Humana on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. See the numbers differently? If this update gives you a fresh angle on Humana’s story, shape that view into a clear narrative in just a few minutes: Do it your way. A great starting point for your Humana research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision. Explore Alternatives Humana’s 1% net margin, earnings volatility and exposure to a US$745.0m one off loss highlight how sensitive its profits are to cost and reimbursement pressure. If those tight margins and swings in EPS make you uneasy, you may want to explore 85 resilient stocks with low risk scores to quickly focus on companies with more stable risk profiles.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Humana might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport,express","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}