Key Takeaways Centene shares surged 117% in a year as pricing, cost controls and underwriting trends improved.CNC raised 2026 premium and service revenue guidance to $173-$177B while its HBR improved.CNC trades below industry and key-peer forward P/E levels despite sharply improving 2026 earnings estimates. Centene Corporation (CNC - Free Report) shares have jumped 117% over the past year, far ahead of the industry’s 22.3% growth. The S&P 500 has gained 20.6% over the same period, while peers UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) have returned 28.8% and 25.4%, respectively.
Much of Centene’s rally reflects a recovery from a depressed level. The stock came under heavy pressure after the company withdrew its 2025 earnings guidance in July 2025. Management found that Marketplace members were considerably sicker than expected, which reduced projected risk-adjustment revenues and hurt earnings expectations. Rising medical costs in both Marketplace and Medicaid plans added to the concern and weakened confidence in the company’s outlook.
The picture has improved since then. Profitability stabilized faster than investors expected, corrective pricing in the Marketplace business began to take hold, and Centene reduced exposure to plans that were not priced adequately. Management also raised its outlook several times. As a result, investors have moved from fearing prolonged losses and uncontrolled medical costs to expecting better margins, firmer pricing and more predictable earnings.
One-Year Price Performance: CNC, UNH, ELV, Industry & S&P 500 Image Source: Zacks Investment Research
Operating Trends Point to a RecoveryCentene’s second-quarter health benefits ratio (HBR) improved 340 basis points year over year to 89.6%. Premium revenues increased 4.4% to $43.6 billion, supported by higher premium yields, growth in the prescription drug plan business and rate increases across Medicaid and Marketplace products.
The balance sheet also strengthened. Long-term debt fell 7.6% from year-end 2025 to $16 billion, while cash and cash equivalents rose 35% to $24.2 billion. Net cash provided by operations reached $8 billion in the first half of 2026, up 142.4% from the prior-year period, although favorable timing contributed to the increase.
Management raised its 2026 premium and service revenue guidance to $173-$177 billion from $171-$175 billion. The company now expects a HBR of 90.5-91.3% for 2026, compared with 91.9% in 2025 and 88.3% in 2024. The projected improvement suggests that recent pricing and cost actions are starting to support underwriting results.
Earnings Expectations Have Turned Sharply HigherThe Zacks Consensus Estimate calls for 2026 earnings of $4.89 per share, up 135.1% from the previous year. Analysts expect earnings to rise another 9.2% in 2027 to $5.34 per share.
Revenue growth is expected to remain modest. The consensus estimate points to revenues of $196.29 billion in 2026, up 0.8%, followed by a slight decline to $192.58 billion in 2027. This outlook shows that the recovery is centered more on margins and execution than on rapid sales growth.
Centene has also topped earnings estimates in each of the past four quarters, producing an average surprise of 151.3%.
CNC’s ValuationThe rebound has lifted Centene’s valuation. CNC now trades at 12.56X forward earnings, above its five-year median of 11.31X. Even so, the multiple remains below the industry average of 15.69X. It also trails UnitedHealth’s 18.31X and Elevance Health’s 14.11X. Centene carries a Value Score of A, indicating that the stock still offers a reasonable mix of valuation and earnings potential.
Image Source: Zacks Investment Research
Centene currently trades below the average analyst price target of $71.94, suggesting an upside of 11.8%. The range is wide, with the high target at $85 and the low at $56, reflecting different risk views.
Risks Have Eased, but They Have Not DisappearedCentene remains dependent on government-sponsored healthcare programs. Its results can therefore shift with changes in federal and state funding, reimbursement rates and regulation across Medicaid, Medicare and Affordable Care Act Marketplace plans.
Expenses deserve attention. Total operating costs rose 5.5% in 2023, 5.8% in 2024 and 26.6% in 2025. They increased another 6.6% year over year in the first half of 2026. Pricing actions and tighter cost controls should help, but elevated medical expenses and continued investment could slow the pace of margin gains.
Capital efficiency remains another weak spot. Centene’s trailing 12-month return on capital is 6.8%, below the industry average of 9.9%, showing room for better capital efficiency.
Why Centene’s Recovery Could ContinueSeveral trends support the longer-term outlook. An aging population and rising chronic-disease prevalence should support long-term demand across Centene’s health plans.
Centene is also reshaping its membership mix. Total membership declined to 25.9 million at the end of the second quarter as the company reshaped its book, but prescription drug plan membership rose 12.2% year over year, while Individual and Commercial Group membership rose 10.5%, showing growth in selected areas of the portfolio.
The company is strengthening fraud prevention and payment integrity through AI-based analytics that can flag unusual claims earlier and improve oversight. It is also using advanced analytics in medical-cost forecasting, pricing and operating decisions.
Centene is working with states to secure rates that better match member needs, utilization trends and the risk profile of the population after eligibility redeterminations. These steps, together with firmer Marketplace pricing and tighter cost control, give the company a clearer path to steadier margins.
Should Investors Buy CNC Stock Now?Centene’s sharp rebound increasingly has fundamental support rather than relying on momentum alone. Corrective Marketplace pricing, better Medicaid rate alignment, tighter cost controls and stronger PDP growth are helping margins recover, while repeated guidance increases point to better earnings visibility.
Risks tied to medical costs, regulation and government funding remain, and the stock is no longer as cheap as it was a year ago. Still, earnings estimates are moving higher, underwriting trends are improving, and valuation remains below key peers. With these factors supporting further upside, Centene currently sports a Zacks Rank #1 (Strong Buy), making the stock worth considering for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Centene zlepšila Marketplace: poměr zdravotních nákladů k benefitům klesl ve 2. čtvrtletí 2026 na 79,2 % z 90,6 % a firma čeká v roce 2026 marži před zdaněním 4,5 % až 5 %.
Key Takeaways Centene's Marketplace benefits ratio fell to 79.2% as medical costs and risk-adjustment trends improved.Centene now expects a 4.5%-5% Marketplace pretax margin in 2026 despite membership declines.Centene's SG&A ratio improved, while technology, automation and AI could further support profitability. Centene Corporation (CNC - Free Report) is rebuilding its Marketplace business after a difficult 2025, with better pricing, moderating medical costs and improved underwriting dynamics supporting a sharp improvement in profitability. The recovery is becoming an important contributor to Centene’s broader margin-restoration strategy.
The Marketplace health benefits ratio improved to 79.2% in the second quarter of 2026 from 90.6% a year ago. The improvement reflected better medical cost trends and risk-adjustment dynamics. Centene also benefited from a $180 million favorable 2025 CMS risk-adjustment reconciliation during the quarter.
Importantly, the improvement is not dependent solely on membership expansion. Marketplace membership stood at around 3.5 million at the end of June 2026, down substantially from 5.9 million a year ago. However, the business is now expected to generate a 4.5%-5% pretax margin in 2026, compared with the previous 3% outlook. This suggests that tighter pricing and a more favorable risk profile are helping Centene prioritize profitability over volume.
The key challenge now is sustaining those gains as eligibility reviews could cause further membership attrition in the second half of 2026. Centene’s 6.9% adjusted SG&A expense ratio in the second quarter of 2026, which improved from 7.1% a year ago, and increased use of technology, automation and AI could provide another layer of support. If these trends hold, the Marketplace business could provide a more dependable earnings contribution and support Centene’s overall profit growth over time.
How Are Competitors Faring?Some of CNC’s major competitors in the healthcare service provider space are UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
UnitedHealth is taking a more selective approach to its individual exchange business, with pricing and benefit adjustments aimed at better aligning premiums with medical costs. UNH’s medical care ratio improved to 86.7% in the second quarter of 2026 from 89.4% a year ago.
Elevance is also working to improve Individual ACA profitability through tighter pricing and plan repositioning. ELV is also investing in clinical oversight, payment integrity and value-based care to improve cost management and support more consistent margins.
Centene’s Price Performance, Valuation & EstimatesShares of CNC have surged 56.4% in the year-to-date period compared with the industry’s rise of 20%.
Image Source: Zacks Investment Research
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 12.39, below the industry average of 15.83. CNC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, implying 135.1% growth from the year-ago period.
Image Source: Zacks Investment Research
CNC stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A month has gone by since the last earnings report for Centene (CNC - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Centene due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Centene Q2 Earnings Beat Estimates on Increasing Premiums
Centene reported second-quarter 2026 adjusted earnings per share (EPS) of $2.51, which surpassed the Zacks Consensus Estimate of 89 cents. Moreover, the bottom line climbed from a loss of 16 cents per share a year ago.
Revenues totaled $53.6 billion, which rose 9.9% year over year. The top line beat the consensus mark by 12.7%.
The strong quarterly results benefited from strong premium and services revenues in Medicaid and Medicare businesses, fueled by increased premium yield, expanding membership in the Prescription Drug Plan (PDP) business and rate hikes in Marketplace and Medicaid businesses. However, the upside was partly offset by a decline in total membership and an increase in medical costs.
Quarterly Operational Update of CNCRevenues from Medicare advanced 17% year over year to $11.1 billion, and Medicaid revenues of $22.8 billion rose 5% in the quarter under review. Meanwhile, commercial revenues came in at $9.4 billion, down 7% year over year.
Centene's premium of $43.6 billion grew 4.4% year over year on the back of higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. The metric beat the Zacks Consensus Estimate of $42.5 billion.
Service revenues rose 9.1% year over year to $793 million in the second quarter and surpassed the consensus mark of $723 million. Investment and other income of $435 million improved 17.3% year over year and topped the Zacks Consensus Estimate of $359 million.
Total membership was 25.9 million as of June 30, 2026, which decreased 7.6% year over year due to membership declines in the Medicaid, Marketplace and Medicare businesses. However, the metric marginally beat the consensus mark.
Centene’s health benefits ratio improved 340 basis points year over year to 89.6% in the quarter under review. Operating expenses totaled $52.4 billion, which increased 6.5% year over year due to higher medical costs, selling, general and administrative expenses, cost of services and premium tax expense. Medical costs escalated 0.6% year over year.
Adjusted net earnings were recorded at $1.2 billion against the year-ago loss of $79 million.
CNC’s Q2 Financial Update (As of June 30, 2026)Centene exited the second quarter with cash and cash equivalents of $24.2 billion, which rose 35% from the 2025-end level. Total assets of $83 billion grew 8.2% from the figure at 2025-end.
Long-term debt amounted to $16 billion, down 7.6% from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $75 million.
Total stockholders’ equity of $22.6 billion increased 13% from the 2025-end figure.
Centene generated $8 billion of net cash from operations in the first half of 2026, which increased from the prior-year comparable period’s $3.3 billion.
CNC’s Revised 2026 GuidanceManagement now expects premium and service revenues within the band of $173-$177 billion for 2026, up from the previous guidance range of $171-$175 billion. The midpoint of which indicates growth of 0.2% from the 2025 reported figure.
Revenues are now estimated between $193.5 billion and $197.5 billion, up from the previously projected band of $187.5 billion-$191.5 billion, the midpoint of which implies a 0.4% increase from the 2025 figure.
Adjusted EPS is now expected to be greater than $4.80, higher than the previously projected figure of $3.40, which indicates a surge of more than 130.8% from the 2025 figure. GAAP EPS is now forecasted to remain greater than $3.11.
Health benefits ratio is now estimated to be in the band of 90.5-91.3% for 2026, while the adjusted SG&A expense ratio is now anticipated to be 6.9-7.5%. The adjusted effective tax rate is now expected to be in the range of 25.5-26.5%.
Shares outstanding are now projected to be between 497 million and 500 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted 22.57% due to these changes.
VGM ScoresCurrently, Centene has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Centene has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerCentene is part of the Zacks Medical - HMOs industry. Over the past month, Molina (MOH - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Molina reported revenues of $10.87 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $1.51 for the same period compares with $5.48 a year ago.
For the current quarter, Molina is expected to post earnings of $0.73 per share, indicating a change of -60.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -17.4% over the last 30 days.
Molina has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Centene oznámila plánovanou výměnu finančního ředitele: Drew Asher odejde z funkce 31. prosince 2026 a odejde z Centene na konci roku 2027, zatímco Chris Neczypor jej nahradí jako výkonný viceprezident a finanční ředitel od 1. ledna 2027.
Drew Asher to step down as CFO December 31, 2026 and retire from Centene at the end of 2027 Chris Neczypor named successor CFO, effective January 1, 2027 , /PRNewswire/ -- Centene Corporation (NYSE: CNC) announced its Chief Financial Officer (CFO), Drew Asher, has notified the company of his intention to step down from his CFO role in December 2026 and retire from Centene at the end of 2027. Chris Neczypor will join the organization in September and work alongside Mr. Asher, assuming the Executive Vice President and Chief Financial Officer role on January 1, 2027. Mr. Asher will remain with the company until his retirement to support a variety of strategic initiatives and ensure a smooth transition.
Mr. Neczypor is a seasoned executive with deep experience across corporate finance, strategy, transformation and capital management. Prior to joining Centene, Mr. Neczypor served as Executive Vice President and Chief Financial Officer for Lincoln Financial, a leading provider of life insurance, annuities, group benefits and retirement solutions. Since joining Lincoln in 2018, he has held other leadership positions, including as Chief Strategy Officer and roles spanning investments, strategic planning and enterprise transformation. Prior to Lincoln Financial, Mr. Neczypor spent more than a decade in investment and financial services roles, including as an equity research analyst at Goldman Sachs and as an investor at institutional asset management firms.
"I'm excited to welcome Chris to Centene," said Sarah M. London, Chief Executive Officer. "Chris brings a proven track record of strengthening financial performance, optimizing operations and creating long-term shareholder value. Just as importantly, he is a collaborative, values-driven leader who understands how to build strong teams and drive meaningful impact. Our organization will benefit from his expertise, energy and perspective as we deliver on Centene's next phase of transformation and growth."
"It's an honor to join a company with such an extraordinary mission," said Mr. Neczypor. "I look forward to serving as Centene's next Chief Financial Officer and working alongside Sarah and the leadership team to transform the health of communities across our country."
Mr. Asher's distinguished career includes over three decades of financial and healthcare industry leadership. Since assuming the role of CFO in 2021, Mr. Asher has helped guide Centene through a period of significant growth and change. The company expanded from approximately $126 billion in revenue in 2021 to approximately $195 billion in 2025, reflecting the company's significant increase in scale during a period of transformation across the healthcare industry.
"I am incredibly proud of how Centene navigated through unprecedented change while remaining disciplined in execution and focused on long-term value," said Drew Asher. "The foundation we've built and the outstanding team we've assembled give me confidence in Centene's ability to transform healthcare and provide value for shareholders. I look forward to working closely with Sarah and Chris through 2027 to support Centene's continued progress."
Added Ms. London: "I want to thank Drew for his exceptional contributions to Centene. His strategic perspective, financial discipline and unwavering focus on value creation set the stage for Centene's next chapter of growth and success. His partnership has been invaluable to me, and I am grateful that we will be able to continue to draw on Drew's expertise as we transition into the company's next chapter."
Centene reaffirms its previously issued full year 2026 adjusted diluted EPS guidance of greater than $4.80 and all associated 2026 full-year guidance metrics provided in its July 28, 2026 second quarter earnings press release.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach with local teams to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans), as well as individuals and families served by the Health Insurance Marketplace.
Forward-Looking Statements
All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "predict," "intend," "seek," "target," "goal," "potential," "may," "will," "would," "could," "should," "can," "continue," and other similar words or expressions (and the negative thereof). Our 2026 full year guidance and the expected timeline of the CFO transition are forward-looking statements. Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about the timing of the CFO transition, our expected future operating or financial performance, changes in laws and regulations, market opportunity, expectations concerning pricing actions, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments, and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive, and other factors that may cause our or our industry's actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables, and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical costs; rate cuts, insufficient rate changes or other payment reductions or delays by government payors affecting our government businesses; the effect of social, economic, and political conditions, geopolitical events and state and federal policies, including the amount and terms of state and federal funding for government-sponsored healthcare programs, including as a result of changes in U.S. presidential administrations or Congress; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder, including the timing and terms of renewal or modification of the Enhanced Advance Premium Tax Credits (eAPTCs) or program integrity initiatives that could have the effect of reducing membership or profitability of our products; unanticipated increased healthcare costs, including due to changes in consumer and provider behaviors, inflation and tariffs; our ability to successfully execute on our enterprise optimization initiatives, including any separation programs; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to comply with the terms of our contracts and state and federal regulations and our ability to effectively oversee our third-party vendors to comply with the terms of their contracts with us and state and federal regulations; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; impairments to real estate, investments, goodwill and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; changes in macroeconomic conditions, including inflation, interest rates and volatility in the financial markets; negative public perception of the Company and the managed care industry; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal and other contracts and delays in the timing of regulatory approval of contracts, including due to protests and our ability to timely comply with any such changes to our contractual requirements or manage any unexpected delays in regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters including, but not limited to, our ability to resolve claims and/or allegations on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought; challenges to our contract awards; cyber-attacks or other data security incidents or our failure to comply with applicable privacy, data or security laws and regulations; the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the terms of our contracts and the undertakings in connection with any regulatory, governmental, or third-party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition, and results of operations, in our filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative (SG&A) costs.
UnitedHealth ve 2. čtvrtletí meziročně zvýšil tržby o 0,4 % a Optum zvedl provozní marži o 160 bazických bodů. Centene ve stejném období zvýšil tržby o 9,9 % a zisk na akcii na 2,51 USD.
Key Takeaways UNH stands out with diversified growth drivers, improving Optum margins and AI-led efficiency gains.UNH benefits from value-based care expansion, operational reforms and favorable earnings estimate revisions.Centene remains supported by Medicaid strength, but lower capital efficiency tempers its investment appeal. Rising healthcare utilization, evolving reimbursement policies and ongoing changes in government-sponsored healthcare programs continue to shape the outlook for U.S. managed care organizations. As insurers balance membership growth with medical cost pressures, investors are closely assessing business resilience, margin stability and long-term earnings potential.
UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) are two leading managed care companies with meaningful exposure to Medicare and Medicaid, making them closely watched peers in the sector. While both operate within the same industry, their business mix, scale and strategic priorities differ, offering distinct approaches to navigating regulatory changes and growth opportunities. UnitedHealth benefits from a diversified healthcare platform, providing multiple revenue streams and broader earnings support. Centene, by contrast, remains more focused on government-sponsored healthcare programs, with Medicaid serving as its primary growth driver and a greater reliance on efficient cost management and contract execution.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for UnitedHealthUnitedHealth's biggest competitive strength lies in its diversified healthcare platform, where its insurance business, UnitedHealthcare, is complemented by Optum's health services operations. In the second quarter of 2026, the company’s total revenues rose 0.4% year over year. Meanwhile, Medicare performance improved during the second quarter through pricing discipline, benefit design and care management initiatives. OptumHealth continued to regain momentum with its integrated value-based care model.
Optum remains a key long-term growth engine. It delivered stronger profitability, with its operating margin improving 160 basis points year over year, demonstrating improving operational efficiency across the platform. The business now supports more than 120 million consumers and continues to expand value-based care through primary care, ambulatory surgery and home health services. Clinical initiatives have already reduced hospitalizations by about 10% in the Western and Southern regions, while home health pilots improved timely care delivery by more than 20%. Rural care programs now reach nearly 90% of U.S. counties and are scheduled for broader rollout by the end of 2026.
Technology and AI are becoming increasingly embedded across UNH's operations. AI-based ambient listening tools are already available to roughly 70% of employed providers and are expected to exceed 90% by year-end. The company is also deploying AI across coding, care coordination, customer service and clinical decision support, helping reduce administrative work while improving patient access and provider efficiency.
UnitedHealth is also reshaping its healthcare delivery model through operational reforms designed to simplify the patient experience. The company plans to eliminate 30% of current prior authorization volume by the end of 2026, remove nearly two-thirds of pediatric prior authorization requirements and expand transparent pharmacy pricing through its fee-based PBM model. These initiatives, along with continued investments in digital services and affordability, position the company to improve efficiency while supporting sustainable long-term growth. UNH beat earnings in each of the past four quarters with an average surprise of 12.1%.
UnitedHealth Group Incorporated Price, Consensus and EPS SurpriseRegulatory scrutiny continues to cast a shadow over the company. Ongoing investigations involving Medicare billing practices and aspects of the Optum business could create headline risk and potentially increase compliance costs.
The Case for CenteneCentene continues to benefit from its strong presence in government-sponsored healthcare, particularly Medicaid, Medicare and the Marketplace business. Medicaid membership remained above 12.1 million during the second quarter, while stronger-than-expected state rate updates improved the company's expected composite Medicaid rate outlook from roughly 4.5% to approximately 5% for 2026. The favorable reimbursement environment, combined with disciplined medical cost management, continues to support earnings recovery.
In the second quarter of 2026, its revenues rose 9.9% year over year, along with 4.4% growth in premiums, benefiting from higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. CNC’s HBR improved 340 basis points year over year to 89.6% in the quarter under review. The bottom line went from a loss of 16 cents per share a year ago to earnings of $2.51.
Centene is sharpening its focus on businesses where it sees stronger long-term returns. The Medicare Advantage portfolio is being streamlined around dual-eligible beneficiaries, leveraging the company's Medicaid expertise to provide more integrated care. Over the past three reporting cycles, more than 90% of its core Medicaid clinical quality measures have improved through enhanced data capture, targeted provider incentives and scalable member engagement programs.
Technology transformation is becoming a larger part of Centene's long-term strategy. AI is already being used in forecasting, fraud detection and enterprise operations, while the company is investing in scalable data infrastructure, reusable AI capabilities and automated workflows across the organization. This measured approach is intended to improve operating efficiency, strengthen compliance in a highly regulated environment and create a more durable foundation for long-term earnings growth. The company beat earnings in each of the past four quarters with an average surprise of 151.3%.
Although reimbursement trends have improved, CNC still faces elevated costs from behavioral health, home health and high-cost specialty drugs. Its capital efficiency trails UNH. Centene's trailing 12-month return on invested capital stands at 4.5%, below UnitedHealth’s 6.2%. Also, CNC’s long-term debt-to-capital of 41.5% is higher than UNH’s 40.4%.
How Do Estimates Compare for UNH & CNC?For UnitedHealth, the Zacks Consensus Estimate forecasts 2026 EPS of $19.60, reflecting 19.9% year-over-year growth, followed by another 13.8% jump in 2027. For 2026, revenues are pegged at $446.6 billion, suggesting a 0.2% decline year over year. The top line is expected to improve 2.4% in 2027. It has witnessed 11 positive earnings estimate revisions over the past 30 days against no downward revisions.
Analysts anticipate a rebound in Centene’s 2026 earnings, with the Zacks Consensus Estimate standing at $3.82 per share, implying 83.7% year-over-year growth as its cost pressures ease. The same for 2027 indicates a 26.3% jump. The consensus mark for 2026 and 2027 revenues signals a decline of 0.4% and 1.5% year over year, respectively. It has witnessed two positive earnings estimate revisions over the past 30 days against no downward revisions.
Valuation: UNH vs. CNCUnitedHealth trades at a premium valuation relative to Centene, reflecting its superior earnings visibility, diversification and margin profile. Investors are willing to pay more for consistency and lower risk. UnitedHealth currently trades at a forward P/E of 19.95X, above Centene’s 15.16X and the industry’s 16.98.
Image Source: Zacks Investment Research
Price Performance ComparisonOver the past six months, UnitedHealth’s shares have gained 47.6%, outperforming Centene, the broader industry and the S&P 500’s growth of 42.2%, 41.9% and 4.2%, respectively. This contrast highlights improving investor confidence in UNH’s growth plan, cost containment and earnings visibility.
Price Performance – UNH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research
Price Target Outlook: UNH vs. CNCUNH currently trades below its average analyst price target of $481.52, implying a 14.5% potential upside from current levels. CNC also trades below its average analyst price target of $66.41, implying a 7.4% potential upside from current levels.
ConclusionUnitedHealth and Centene both offer exposure to the managed care industry, but they approach growth differently. CNC remains well positioned to benefit from its leadership in Medicaid and improving performance across its Marketplace and Medicare businesses. However, its heavier reliance on government-sponsored programs, lower profitability and relatively weaker capital efficiency make its earnings outlook more dependent on policy and reimbursement trends.
Meanwhile, UNH stands out with its diversified business model, where the combination of UnitedHealthcare and Optum provides multiple growth engines and stronger earnings resilience. Continued momentum in value-based care, expanding AI capabilities, operational reforms and a stronger balance of profitability support its long-term outlook.
Combined with favorable earnings estimate revisions, a larger implied upside to the average price target and a proven execution track record, UnitedHealth appears to be the better investment choice at current levels, even though both companies currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Centene ve 2. čtvrtletí vykázala zisk na akcii 2,51 USD a tržby 53,58 miliardy USD, obojí nad odhady. Zisk byl také výrazně vyšší než před rokem, kdy činila ztráta 0,16 USD na akcii.
Centene (CNC - Free Report) came out with quarterly earnings of $2.51 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to a loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +182.02%. A quarter ago, it was expected that this healthcare company would post earnings of $1.87 per share when it actually produced earnings of $3.37, delivering a surprise of +80.21%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Centene, which belongs to the Zacks Medical - HMOs industry, posted revenues of $53.58 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 12.73%. This compares to year-ago revenues of $48.74 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.
Centene shares have added about 55.7% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Centene?While Centene 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 Centene was mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.19 on $47.58 billion in revenues for the coming quarter and $3.46 on $190.97 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 - Free Report) , 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.
Centene zvýšila celoroční výhled zisku i tržeb po lepším řízení nákladů a silnějších čtvrtletních výsledcích. Akcie před otevřením trhu vzrostly o více než 2 %.
Mar 5, 2022; Charlotte, North Carolina, USA; A view of the Centene Corporation ad before the game between the Los Angeles Galaxy and Charlotte FC at Bank of America Stadium. Mandatory Credit:... Purchase Licensing Rights, opens new tab Read more
CompaniesJuly 28 (Reuters) - Centene (CNC.N), opens new tab on Tuesday raised its annual profit and revenue forecasts after beating estimates for quarterly earnings, as the health insurer kept control of its costs.
The upbeat results and forecast, which sent the company's shares up more than 2% before the bell, come as a relief for investors after high costs have pressured the health insurance industry for three years.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
"Our second-quarter results and improved full-year outlook represent meaningful milestones on our path to restoring profitability and increasing shareholder value," said CEO Sarah London.
Centene in April said it has better control over its medical costs and that it is taking a prudent outlook for the rest of the year.
Second-quarter medical loss ratio, the percentage of premiums spent on medical care, was 89.6%, lower than 93% last year and below analysts' estimates of 91.30%, as per data compiled by LSEG.
The company said the lower costs were due to improved pricing of its Obamacare plans, as well as a boost from risk-adjustment payments that reimburse insurers who cover a disproportionate share of sicker members.
Americans this year are dropping off Obamacare plans, established under former President Barack Obama's Affordable Care Act, as many who are facing the end of extra subsidies created during the COVID-19 pandemic struggle to make payments.
Centene had previously flagged a higher number of sick patients in the silver metal tier in Obamacare plans, who pay higher premiums for lower out-of-pocket expenses.
The company raised its 2026 adjusted profit forecast to more than $4.80 per share, from above $3.40. Analysts were expecting a profit of $3.52 per share.
The health insurer also raised its full-year revenue forecast to a range of $193.5 billion to $197.5 billion. It was previously in the range of $187.5 billion to $191.5 billion.
Centene's quarterly adjusted profit per share was $2.51, surpassing estimates of $1.09.
Reporting by Sneha S K and Sriparna Roy in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Centene má 28. července oznámit výsledky za 2. čtvrtletí, trh čeká zisk na akcii 89 centů při tržbách 47,53 mld. USD. Marži by mělo podpořit zlepšení poměru zdravotních nákladů na pojistné na 91,5 % z 93 %.
Key Takeaways Centene is set to report Q2 2026 results on July 28, with EPS estimated at 89 cents on $47.53B revenue.CNC's profitability may improve from pricing, cost controls and portfolio optimization amid membership falls.The health benefits ratio is projected to improve to 91.5% from 93%, supporting margins. Healthcare plan provider Centene Corporation (CNC - Free Report) 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%.
Image Source: Zacks Investment Research
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.
Q2 Earnings Whispers for CenteneOur 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 & ValuationCentene'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 - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , 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 Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Key Takeaways Centene has surged 66% YTD as improving execution, margins and outlook fueled its turnaround.CNC raised 2026 premium and service revenue guidance after a stronger first-quarter performance.Centene still faces policy, cost and competition risks despite stronger cash flow and profitability. Centene Corporation (CNC - Free Report) , one of the largest managed healthcare providers in the United States, has staged an impressive comeback in 2026. The stock has surged 66% year to date, far ahead of the industry’s 28.5% gain. The broader S&P 500 has advanced 10.7% over the same period, while UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) have returned 30% and 21.3%, respectively.
The rally marks a sharp reversal from last year's selloff, when rising medical costs forced Centene to withdraw its financial guidance and shook investor confidence. Since then, the company has regained visibility into its business, restored earnings growth and convinced investors that its turnaround is gaining traction. Better execution, improving profitability and a more favorable outlook for managed care have all helped drive the stock higher.
YTD Price Performance: CNC, UNH, ELV, Industry & S&P 500 Image Source: Zacks Investment Research
The first quarter reflected that progress. Centene's health benefits ratio improved 20 basis points from the prior-year period to 87.3%, while premium revenues increased 5.2% year over year to $43.9 billion, supported by higher Prescription Drug Plan (PDP) enrollment and stronger Medicaid reimbursement rates. The balance sheet also improved, with long-term debt declining 6% from year-end 2025 to $16.3 billion. Encouraged by these trends, management raised its 2026 premium and service revenue guidance to a range of $171-$175 billion from the previous outlook of $170-$174 billion.
What Do the Estimates Say Now?The Zacks Consensus Estimate for 2026 earnings is pegged at $3.46 per share, representing a 66.4% increase from the prior year. Analysts expect another year of growth in 2027, with earnings projected to reach $4.41 per share.
Revenue tells a different story. Estimates call for revenues of $191.03 billion in 2026, down 1.9% year over year, followed by a slight decline to $190.33 billion in 2027. Even so, investors appear focused on margin improvement rather than top-line growth.
Centene has beaten earnings estimates in three of the past four quarters, delivering an average surprise of 74.9%.
CNC’s ValuationCentene's strong share price performance has naturally lifted its valuation. The stock now trades at a forward price-to-earnings multiple of 17.22X, well above its five-year median of 11.31X. However, it still trades below the industry average of 18.48X. Compared with UnitedHealth at 21.84X and Elevance at 15.15X, Centene sits somewhere in the middle and carries a Value Score of A, suggesting the stock still offers a reasonable balance between price and earnings potential.
Image Source: Zacks Investment Research
Challenges Still Deserve AttentionDespite the recovery, several risks remain. Centene generates most of its revenues from government-sponsored healthcare programs, leaving results closely tied to changes in federal and state policies. Medicaid, Medicare and Affordable Care Act Marketplace plans all depend on reimbursement rates, funding decisions and evolving regulations.
Costs also remain a concern. Total operating expenses increased 5.5% in 2023, 5.8% in 2024 and 26.6% in 2025. During the first quarter of 2026, operating expenses rose another 6.6% year over year. Although management continues to adjust pricing and tighten cost controls, elevated medical costs and ongoing investments could slow the pace of margin improvement.
Capital efficiency also trails peers. Centene's trailing 12-month return on invested capital stands at 4.5%, below the industry average of 5.5%, suggesting there is still room to improve how the company deploys capital.
What Is Working in CNC’s Favor?Several factors continue to strengthen Centene's long-term outlook. Total membership eased to 26.3 million at the end of the first quarter as the company reshaped its portfolio, but growth is shifting toward businesses with better profitability. PDP membership increased 11.6% year over year, while Medicare Advantage and Dual-Eligible Special Needs Plan retention improved.
The Medicaid business remains another important driver. Improving state reimbursement rates and disciplined pricing are helping lift profitability in one of Centene's largest operations, although competition for new government contracts remains intense.
Management is also focused on improving efficiency. The merger of Carolina Complete Health and WellCare of North Carolina into a single provider-led organization creates a combined business serving more than 980,000 members, including more than 775,000 Medicaid members. The move should deepen relationships with providers while improving care coordination.
Cash generation has strengthened as earnings recover. Net cash from operations climbed to $4.4 billion in the first quarter from $1.5 billion a year earlier. Combined with favorable demographic trends, including an aging population and rising chronic disease rates, this gives Centene a stronger foundation for sustained growth.
Should Investors Buy CNC Stock Now?Centene has made meaningful progress in rebuilding investor confidence after a difficult 2025. Improving margins, cash generation, balance sheet and an encouraging earnings outlook suggest that the turnaround is gaining momentum. At the same time, the company continues to face familiar challenges, including policy uncertainty, elevated medical costs and intense competition across government-sponsored healthcare programs.
While the stock's sharp rally has reduced some of its valuation appeal, it still trades below the industry average and offers solid long-term fundamentals. With both positive catalysts and lingering risks in play, investors may want to wait for additional evidence of sustained earnings improvement. Centene currently carries a Zacks Rank #3 (Hold), indicating that existing shareholders can stay invested, while new investors may consider waiting for a more attractive entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dceřiná společnost Centene, Meridian Health Plan of Illinois, získala v Illinois čtyřletou smlouvu na pokračování programu HealthChoice Illinois Medicaid, která má začít 1. ledna 2027.
, /PRNewswire/ -- Centene Corporation (Centene) (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, announced today that its Illinois subsidiary, Meridian Health Plan of Illinois, Inc. (Meridian), has been selected by the Illinois Department of Healthcare and Family Services (HFS) to continue providing services for the HealthChoice Illinois Medicaid managed care program. The four-year contract is expected to begin January 1, 2027, through 2030.
Meridian logo "Centene has a long track record serving Medicaid and dually eligible Medicaid-Medicare members in Illinois," said Chief Executive Officer Sarah M. London. "This award reflects Meridian's strong local partnerships and focus on delivering coordinated, high-quality care while connecting people to the support they need beyond the clinical setting. We value our partnership with the state and look forward to continuing to expand access and strengthen outcomes across Illinois."
Meridian is one of six managed care organizations selected by HFS to deliver access to high-quality managed care services to approximately 2.4 million Medicaid-eligible Illinoisans statewide. As of May 2026, Meridian serves more than 596,000 Medicaid enrollees through the HealthChoice Illinois Medicaid program. Under the new contract, Meridian will continue providing managed care for Medicaid enrollees, including access to integrated primary, maternal, and behavioral health care.
"We are honored to be chosen again by the Illinois Department of Healthcare and Family Services to continue delivering access to high-quality, whole person care through proven performance and building on our strategy to address barriers to care," said Meridian Plan President and Chief Executive Officer Cristal Gary.
In addition to ensuring its members get the medical care they need through its clinical and population health programs, Meridian's whole-person approach also focuses on improving well-being by working with community-based partners to address gaps in social drivers that impact health outcomes. Meridian is recognized for its work with the highest possible 5-star rating in the latest 2024 HealthChoice Illinois Report Card in three critical areas: Access to Care, Living with Illness, and Women's/Children's Health.
Building on nearly 20 years of experience serving Illinois communities, Meridian will continue providing comprehensive, coordinated care for some of the state's most vulnerable populations while advancing programs that address social drivers of health across all 102 counties.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach with local teams to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace.
Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, http://investors.centene.com/.
About Meridian Health Plan of Illinois
Meridian Health Plan of Illinois, Inc. and its family of health plans provide government-sponsored managed care to families, children, seniors, and individuals with complex medical needs. This includes Meridian's Medicaid and Medicare-Medicaid plans, and YouthCare HealthChoice Illinois. YouthCare is a specialized program designed to address the healthcare needs of Illinois Department of Children and Family Services (DCFS) youth in out-of-home placement and former youth in care. Meridian connects members to care and offers comprehensive services to support lifelong health and wellness. Meridian is a company of Centene Corporation, a leading healthcare enterprise committed to helping people live healthier lives. Learn more at ILmeridian.com.
All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "predict," "intend," "seek," "target," "goal," "potential," "may," "will," "would," "could," "should," "can," "continue," and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our expected future operating or financial performance, changes in laws and regulations, market opportunity, expectations concerning pricing actions, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments, and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive, and other factors that may cause our or our industry's actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables, and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical costs; rate cuts, insufficient rate changes or other payment reductions or delays by government payors affecting our government businesses; the effect of social, economic, and political conditions, geopolitical events and state and federal policies, including the amount and terms of state and federal funding for government-sponsored healthcare programs, including as a result of changes in U.S. presidential administrations or Congress; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder, including the timing and terms of renewal or modification of the Enhanced Advance Premium Tax Credits (eAPTCs) or program integrity initiatives that could have the effect of reducing membership or profitability of our products; unanticipated increased healthcare costs, including due to changes in consumer and provider behaviors, inflation and tariffs; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to comply with the terms of our contracts and state and federal regulations and our ability to effectively oversee our third-party vendors to comply with the terms of their contracts with us and state and federal regulations; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; impairments to real estate, investments, goodwill and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; changes in macroeconomic conditions, including inflation, interest rates and volatility in the financial markets; negative public perception of the Company and the managed care industry; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal and other contracts and delays in the timing of regulatory approval of contracts, including due to protests and our ability to timely comply with any such changes to our contractual requirements or manage any unexpected delays in regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters including, but not limited to, our ability to resolve claims and/or allegations on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought; challenges to our contract awards; cyber-attacks or other data security incidents or our failure to comply with applicable privacy, data or security laws and regulations; the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the terms of our contracts and the undertakings in connection with any regulatory, governmental, or third party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition, and results of operations, in our filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative (SG&A) costs.
Centene zvýšila využití AI proti podvodům a v 1. čtvrtletí zvedla upravený zisk na akcii (EPS) o 16,2 % na 3,37 USD. Výhled na rok 2026 zvýšila na více než 3,40 USD.
Key Takeaways Centene is expanding AI-enabled fraud detection and payment integrity to improve medical cost efficiency.CNC improved Medicaid health benefits ratio to 93.1% as adjusted EPS rose 16.2% YoY in Q1 2026.Centene raised 2026 adjusted EPS guidance to more than $3.40 after a stronger first quarter. Centene Corporation (CNC - Free Report) is intensifying its efforts to curb fraud, waste and abuse as part of a broader strategy to improve profitability across its government-sponsored healthcare businesses. The company is expanding payment integrity capabilities by combining advanced analytics with AI-enabled tools to identify suspicious billing patterns, abnormal claims activity and emerging medical cost trends earlier. These initiatives are likely supporting CNC in strengthening cost controls while protecting taxpayer-funded healthcare programs.
The strategy is gaining traction in Medicaid, where the company has enhanced oversight of providers, particularly in applied behavior analysis services, while advocating program reforms that would allow states to take a more proactive approach to fraud prevention. Its ongoing investments in utilization management, network optimization and clinical programs create a multi-layered framework to improve medical cost efficiency. These efforts contributed to continued progress in Medicaid margins during the first quarter of 2026.
In the first quarter of 2026, adjusted earnings per share (EPS) rose 16.2% year over year to $3.37. Medicaid's health benefits ratio improved 50 bps year over year to 93.1%, reflecting better medical cost management and ongoing operational improvements. Encouraged by the strong start, Centene raised its 2026 adjusted EPS guidance to more than $3.40 from above $3.00 previously.
While healthcare cost trends remain challenging, Centene's growing focus on fraud prevention, payment integrity and AI-driven analytics could strengthen margin recovery over time. If execution remains consistent, these initiatives may provide a durable competitive advantage while supporting sustainable earnings growth.
How Are Competitors Faring?Some of CNC’s major competitors in the healthcare service provider space are UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
UnitedHealth Group continues to strengthen payment integrity through advanced analytics, AI-driven claims monitoring and Optum's data capabilities. In the first quarter of 2026, UNH’s medical care ratio improved 90 bps year over year to 83.9%. The company remains focused on detecting billing irregularities, improving claims accuracy and managing medical costs, supporting long-term operational efficiency.
Elevance Health is enhancing fraud prevention by leveraging predictive analytics, automation and provider oversight to improve payment integrity. ELV is investing in data-driven care management and claims review capabilities, helping control medical costs while improving program integrity across its government-sponsored health plans.
Centene’s Price Performance, Valuation & EstimatesShares of CNC have surged 64.9% in the year-to-date period compared with the industry’s rise of 28.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 17.24, below the industry average of 18.52. CNC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.46 per share, implying 66.4% growth from the year-ago period.
Image Source: Zacks Investment Research
CNC stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Centene v 1. čtvrtletí zvýšila upravený EPS o 16,2 % na 3,37 USD a tržby o 5,1 %. Zároveň zvedla výhled upraveného EPS pro rok 2026 na více než 3,40 USD.
Key Takeaways CNC's integrated healthcare model supports earnings through coordinated care, pharmacy and clinical services.CNC raised its 2026 adjusted EPS guidance after Q1 adjusted EPS rose 16.2% YoY and revenues increased 5.1%.Centene is expanding AI, analytics and value-based care to improve costs, pricing and care quality. Centene Corporation's (CNC - Free Report) integrated healthcare model is supporting its earnings potential by combining government-sponsored health plans with coordinated clinical services, pharmacy benefits and community-based care. This approach helps the company to manage medical costs more effectively while improving health outcomes across Medicaid, Medicare and Commercial members. As of March 31, 2026, Centene served 26.3 million members, giving the company significant scale to spread administrative costs and support operating leverage.
Centene is also sharpening its operational capabilities through technology and data-driven initiatives. It expanded the use of advanced analytics and selective AI-enabled tools across medical economics, forecasting, fraud detection and payment integrity. These initiatives are helping identify emerging healthcare trends earlier, strengthen claims oversight and improve pricing decisions. In Medicare, the company continues to simplify provider contracts and expand value-based care models targeting high-cost specialties, supporting better quality and lower total cost of care.
In the first quarter of 2026, adjusted earnings per share increased 16.2% year over year to $3.37, while premium and service revenues rose 5.1%. Medicaid's health benefits ratio improved 50 bps year over year to 93.1%, reflecting the impact of better reimbursement, disciplined medical cost management and ongoing operational improvements. Encouraged by the strong start, Centene raised its 2026 adjusted EPS guidance to more than $3.40.
However, regulatory changes and medical cost trends remain key challenges. CNC's integrated approach is creating a stronger operating foundation. Continued investments in technology, clinical programs and provider partnerships should support margin recovery and position the company for sustainable earnings growth over the long term.
How Are Competitors Faring?Some of CNC’s major competitors in the value-based care space are UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
UnitedHealth continues to strengthen its integrated healthcare platform by combining UnitedHealthcare's insurance operations with Optum's pharmacy, care delivery and health services businesses. This connected model enhances care coordination, improves operational efficiency and supports UNH’s long-term earnings growth through diversified revenue streams.
Elevance Health is expanding its integrated care strategy through Carelon, which combines pharmacy, behavioral health and care management services. ELV is leveraging these capabilities to improve clinical outcomes, manage medical costs more effectively and support sustainable earnings growth across its government-sponsored and commercial businesses.
Centene’s Price Performance, Valuation & EstimatesShares of CNC have rallied 66.1% in the year-to-date period compared with the industry’s rise of 36.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 17.39, below the industry average of 19.69. CNC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.46 per share, implying 66.4% growth from the year-ago period.
Image Source: Zacks Investment Research
CNC stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Canada Nickel jmenovala SB1 Markets exkluzivním poradcem pro zajištění dluhového financování až do výše 600 milionů USD. Peníze mají pomoci zpeněžit investiční daňové kredity z projektu Crawford.
, /PRNewswire/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) has appointed SB1 Markets AS ("SB1 Markets") as exclusive advisor to arrange debt financing of up to US$600 million. The facility would allow the Company to monetize Investment Tax Credits expected to be generated by the construction of its Crawford Nickel Project. The Company expects the financing to be arranged by the end of 2026, in advance of a final investment decision on Crawford targeted for 2027. There can be no assurance that the proposed financing will be completed, and, if completed, the terms of such financing would be included in a subsequent release.
Mark Selby, CEO and Director of Canada Nickel Company said, "We are very pleased to work with SB1 Markets, a global leader with deep experience and a highly successful track record in providing debt financing for natural resource projects. With a final permitting decision expected shortly, we can now move more aggressively on key components of our project financing as we advance towards a final investment decision. This bridge financing is central to Crawford's overall capital structure; it allows us to deploy Canada's generous investment tax credits available for critical mineral projects in Canada to fund more than half of the equity capital we need to build Crawford."
About SB1 Markets
SB1 Markets AS is a leading Nordic investment bank, jointly owned by SpareBank 1 and Swedbank and providing investment banking services across DCM, ECM, advisory, research, sales, corporate access, and FICC. The firm is headquartered in Norway and Sweden with around 270 professionals. SB1 Markets has arranged transactions for a total value of approximately USD 70bn over the last twelve months and financing natural resource companies and projects is a core part of the company's business.
About Canada Nickel
Canada Nickel is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM and NetZero IronTM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com.
For further information, please contact:
Mark Selby
CEO
Phone: 647-256-1954
Email: [email protected]
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes the ability of the Company to qualify for critical minerals tax credits, complete the financing described in this release and otherwise finance and construct the Crawford Nickel Project, deliver nickel required to feed the high growth electric vehicle and stainless steel markets, and the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Readers should not place undue reliance on forward looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canada Nickel to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There are no assurances that Crawford will be placed into production. Factors that could affect the outcome include, among others: inability to repay the loan or comply with the covenants set out in the loan agreement; the ability to obtain the approval of the TSX Venture Exchange for the matters described herein; the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of metals or project costs could differ substantially and make any commercialization uneconomic; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in applicable laws; changes in project parameters as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; mineral resource estimates relating to Crawford could prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to advance to the feasibility stage; and even if Crawford goes into production, there is no assurance that operations will be profitable. Although Canada Nickel has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Canada Nickel disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
