Humana slipped into a narrower profit window in the first quarter, with net income falling to $9.83 a share from $10.30 a year earlier. The health‑insurer cited lower Medicare Advantage Star Ratings for 2026 as the chief drag on earnings. Adjusted earnings of $10.31 a share trailed analyst expectations of $10.20 in 2024, reflecting a decline from the prior period.

Benefit ratio, the metric that compares premiums to medical costs, slipped to 89.4% versus Wall Street’s 89.7% forecast. The dip signals tighter underwriting as the company wrestles with increased claims costs and competitive pricing in the Medicare market. Investors noted the mismatch between earnings and the benefit ratio, raising concerns about future profitability for the upcoming fiscal year in 2025.

Despite the quarterly dip, Humana reiterated its full‑year guidance, projecting adjusted earnings of at least $9 per share. Management emphasized ongoing efforts to improve Star Ratings and control costs, aiming to restore investor confidence. The company’s ability to lift its benefit ratio and achieve the targeted earnings will be closely monitored by analysts and shareholders alike in the next quarter.