GE HealthCare Technologies topped the S&P 500 on Wednesday morning whilst Humana lagged after both reported better-than-expected second-quarter earnings. GEHC shares jumped 11.7% to $71.60, breaking above their recent trading range. Earnings rose 6.6% to $1.13 per share, beating forecasts by 9 cents. Revenue climbed 5.9% to $5.295 billion, slightly exceeding estimates. The company maintained its full-year earnings guidance of $4.80 to $5 per share. Humana shares fell 6.6% to $363.18 despite posting earnings of $7.61 per share, up 21% year-on-year and 35 cents above expectations. Revenue increased 26% to $40.867 billion. However, the company maintained its prior full-year outlook and expects adjusted earnings per share of minus $1.00 in the third quarter. The contrasting market reactions reflected ongoing sector dynamics, with managed-care stocks generally outperforming medical equipment stocks this year.

Humana cut its 2026 earnings outlook on Wednesday after lower Medicare Advantage Star Ratings reduced quality bonuses from the federal government. The health insurer revised its full-year GAAP earnings target to a minimum of $6.52 per share, down from at least $8.36 per share previously. The company's second-quarter profit reached $694 million, or $5.73 per share, versus $545 million a year earlier. Total revenue rose 26% to $40.87 billion. A significant decline in plans rated four stars or higher has weighed on 2026 bonus payments. Medicare Advantage Star Ratings, which run from one to five, are tied to bonus payments from the Centers for Medicare and Medicaid Services. Humana stock fell about 9% in premarket trading Wednesday.

Humana has appointed Paul Smith and Frederick Crawford to its board of directors, effective immediately. The additions bring the board to 13 members. Smith serves as Chief Commercial Officer at Anthropic, where he leads commercial strategy and global operations. He brings over 30 years of experience in technology, having previously held senior roles at ServiceNow, Salesforce, and Microsoft. Crawford has more than 30 years of experience in insurance and banking. He most recently served as President and Chief Operating Officer at Aflac until his retirement in 2024. He previously held CFO positions at CNO Financial Group and Lincoln Financial Group, and currently sits on Webster Financial Corporation's board. Chairman Kurt Hilzinger said the executives' expertise in technology adoption and financial management will support Humana's vision to become a consumer healthcare company.