Cavendish PLC (AIM:CAV) has raised its price target for Concurrent Technologies (AIM:CNC) to 302p from 256p after the embedded computing company reported record first-half results.
The broker maintained its 'buy' rating on the AIM-listed company, whose shares it said now traded at 39.1 times forecast earnings for the current financial year.
Order intake at Concurrent, which designs high-end embedded computer systems for critical applications, surged around 110% to £46.9 million in the six months to June.
Cavendish noted that even excluding a roughly £17 million multi-year contract from a European customer, order intake of about £30 million still exceeded the previous first-half record.
The broker said revenue of £23.2 million represented 44.6% of its £52 million full-year forecast, with the past three years showing an average 58% weighting towards the second half.
Cavendish pointed to a turnaround in Concurrent's Systems division, whose gross margin nearly doubled to 26.3% as the unit returned to profit.
Design wins across the company's Products and Systems businesses now carry a projected lifetime value of around £129 million.
Cavendish highlighted management guidance that full-year revenue is expected to be materially ahead of the £52 million consensus forecast, with profit also expected to exceed £8 million.
The broker is keeping its forecasts unchanged for now, including an adjusted earnings per share estimate of 6.8p for the year.
Cavendish said its new target price reflected valuation multiples in line with Concurrent's immediate peer group, implying upside of around 14% from the share price of 265p.
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Centene (CNC - Free Report) Founded as a single health plan in Wisconsin in 1984, Centene Corporation has established itself as a national leader in healthcare services. It is today a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while also serving under-insured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
CNC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 13.9; value investors should take notice.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.42 to $4.89 per share. CNC boasts an average earnings surprise of +151.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CNC should be on investors' short list.
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.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Centene (CNC - Free Report) . CNC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 12.35, which compares to its industry's average of 15.68. Over the past 52 weeks, CNC's Forward P/E has been as high as 13.40 and as low as 4.41, with a median of 8.43.
We also note that CNC holds a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CNC's PEG compares to its industry's average PEG of 0.87. CNC's PEG has been as high as 0.98 and as low as 0.38, with a median of 0.77, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CNC has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.3.
Value investors will likely look at more than just these metrics, but the above data helps show that Centene is likely undervalued currently. And when considering the strength of its earnings outlook, CNC sticks out as one of the market's strongest value stocks.
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.
Home State Health Funding supports community-based programs addressing food security, housing stability, workforce development, foster care and rural health across Missouri
, /PRNewswire/ -- Home State Health, a leading health insurer providing quality, affordable coverage to Missourians, and the Centene Foundation, the philanthropic arm of Centene Corporation (NYSE: CNC), today announced a combined $750,000 investment in nearly two dozen organizations working to address drivers of health to improve health outcomes for individuals and families across the state.
The funding supports community-based programs focused on food security, housing stability, workforce development, foster care, healthcare access and the unique needs of rural communities.
"Across Missouri, community organizations are helping families overcome challenges that directly influence their health and well-being," said Shawn Furey, President and Chief Executive Officer of Home State Health. "Whether it's expanding access to healthy food, stable housing, workforce opportunities, healthcare services or support for children and families, these organizations are changing the communities they serve. We are proud to partner with them and invest in programs that strengthen communities and build healthier futures."
2026 Grant Recipients
Organizations receiving funding include:
AGAPE Community Outreach Care to Learn Catholic Charities of Southern Missouri, Inc. Community Council of St. Charles Covenant House Missouri Coyote Hill Foster Care Ministries Every Child's Hope Faith Bridge Foster Adopt Connect, Inc. Foster Care Coalition Hannibal Regional Healthcare System KVC Behavioral Healthcare Missouri, Inc. Ozarks Resource Group d/b/a Ozarks Community Health Center Pediatric Place, Family First Initiative Phelps County Regional Medical Center (d/b/a Phelps Health) Rung Foundation Inc. (d/b/a Rung for Women) Samuel U. Rodgers Health Center Seed St. Louis Southeast Missouri Health Network St. Francis Hospital Foundation, supporting the needs of Mosaic Medical Center – Maryville Swope Health Services West Central Community Development Corporation Grant recipients include those providing critical services for children, youth and families involved in foster care, adoption, kinship care and transitional living programs. Investments in organizations including Covenant House Missouri, Coyote Hill Foster Care Ministries, Every Child's Hope, Faith Bridge, Foster Adopt Connect, Foster Care Coalition and KVC Behavioral Healthcare Missouri will help expand behavioral health services, strengthen family supports and increase access to resources that promote stability for vulnerable children and families.
The grants also support organizations serving communities throughout urban and rural Missouri. Funded programs aim to increase access to healthcare, nutritious food, stable housing, employment opportunities and other essential services that help individuals and families succeed.
"The Centene Foundation is committed to supporting organizations that are creating meaningful opportunities for individuals and families to thrive," said Keith Williamson, President of the Centene Foundation. "These organizations know their communities and are developing solutions that can make a lasting difference."
Collectively, these grants represent an investment in healthier communities across the state. By supporting these local organizations, Home State Health and the Centene Foundation are helping advance health equity and create stronger communities throughout the state.
About Home State Health
Home State Health is a Missouri-based managed care organization and company of Centene Corporation, a Fortune 25 healthcare enterprise. Home State Health serves the Medicaid population in partnership with MO HealthNet and also provides Marketplace and Medicare coverage to Missouri residents. The organization is committed to transforming the health of the community, one person at a time.
About the Centene Foundation
The Centene Foundation, a private nonprofit focused on investing in economically challenged communities, is the philanthropic arm of Centene Corporation. The Foundation supports projects and initiatives aligned with Centene's mission to remove barriers to wellness and improve health equity through investments in healthcare access, social services and education.
Bradley Bolivar Appointed Chief Information Officer, Bringing Nearly Three Decades of Technology Leadership Experience
, /PRNewswire/ -- Centene Corporation (NYSE: CNC) today announced the appointment of Bradley Bolivar as Chief Information Officer, effective August 31.
"We are entering a new era where data, technology and AI are not just business enablers, but strategic capabilities that shape how we operate, innovate and create value," said Chief Executive Officer Sarah M. London. "Brad's proven ability to solve complex technology challenges will position Centene to deliver simpler, better health experiences and improved outcomes for the nation's most underserved populations."
Mr. Bolivar served as Chief Information Officer at Fannie Mae where he led enterprise technology strategy across application development, infrastructure, cybersecurity, data, artificial intelligence and workplace technology. During his tenure, he accelerated enterprise modernization efforts, strengthened technology resilience and governance, and expanded the use of AI and automation to improve operational performance. Mr. Bolivar brings nearly three decades of technology leadership experience spanning financial services, media and consulting, including senior leadership roles at Fannie Mae and Warner Bros. Entertainment.
"I am honored to join Centene at such an important moment for the industry. Healthcare is undergoing rapid change, creating an opportunity to reimagine how technology, data and innovation can improve experiences and drive better outcomes," said Mr. Bolivar. "I look forward to building on the strong foundation already in place and helping Centene continue advancing its mission of transforming the health of the communities it serves."
Mr. Bolivar succeeds Brian LeClaire, who will retire by the end of October 2026, as planned.
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 brands and 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.
The company's investment will expand access to Pear Suite technology that streamlines service documentation, referrals and Medi-Cal reimbursement for community health worker and doula services.
, /PRNewswire/ -- Health Net, one of California's most experienced Medi-Cal managed care health plans and a Centene Corporation (NYSE: CNC) company, announced a $900,000 grant to Pear Suite to help community-based organizations across California strengthen technology infrastructure, become community health worker and doula providers, and more easily get reimbursed for delivering Medi-Cal services.
Pear Suite logo "Trusted community partners play an essential role in helping people experience care in a way that feels more personal, connected and supportive," said Dorothy Seleski, Medi-Cal President at Health Net. "They meet members where they are, listen to what they need and help connect them to support that can make daily life healthier and more stable. Together with Pear Suite, we are investing in practical technology that helps those partners do what they do best: walk alongside our members and help them take the next step toward better health."
This latest grant builds on Health Net's longstanding partnership with Pear Suite. Since 2023, Health Net has committed more than $1.9M to help expand community health worker capacity, strengthen community-based outreach and connect Medi-Cal members to critical health and social services across California.
The grant will support technology and billing infrastructure for community-based organizations working to become enrolled Medi-Cal providers of community health workers and doula services. Through Pear Suite's platform, organizations can have a turnkey solution to assess social needs, coordinate referrals, document services, streamline billing for Medi-Cal reimbursement and promote preventative activities.
For many Medi-Cal members, getting care goes beyond the doctor's office. It can also mean finding housing support, understanding benefits, arranging transportation or working with someone they trust in their own community — often that's community health workers and doulas who can help connect them to care, address social needs and stay engaged during critical periods. This grant is designed to strengthen the tools behind that work, so organizations can spend more time helping people and less time navigating disconnected systems.
"This funding helps make whole-person care more practical for the community organizations doing the work every day," said Colby Takeda, CEO of Pear Suite. "With stronger tools, training and implementation support, our partners can spend more time engaging members, coordinating services and helping people access the support they need to live healthier lives."
"When community organizations have the tools and resources to reach people where they are, we strengthen the entire safety net," said California Assemblywoman, Stephanie Nguyen. "This investment will help trusted local partners connect Medi-Cal members to care, services and support that can improve health, stability and quality of life for families across our communities."
Health Net is supporting local partners that are building capacity, improving member engagement and strengthening service delivery. This investment in Pear Suite builds on that approach by helping organizations modernize the systems they use to document care, coordinate referrals, support community health workers and track member needs over time.
About Health Net
Founded in California more than 45 years ago, Health Net, LLC ("Health Net"), a company of Centene Corporation, believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. With more than 117,000 of our network providers, Health Net serves more than three million members across the state. We also offer access to substance abuse programs, behavioral health services and managed healthcare products related to prescription drugs. We make these health plans and services available through Health Net and its subsidiaries: Health Net of California, Inc., Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to transforming the health of the communities we serve, one person at a time. Health Net and Centene Corporation employ more than 5,700 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.
About Pear Suite
Pear Suite is a digital health company redefining how the community-based workforce delivers and finances care. Through a turnkey platform, a national provider network, and best-in-class courseware — all purpose-built to activate a growing workforce — Pear Suite equips community health workers (CHWs), community-based organizations (CBOs), and health plans with the tools to close care gaps, drive better outcomes, and unlock sustainable reimbursement. By partnering with over 50 health plans, hundreds of CBOs, and thousands of providers, Pear Suite is leading a movement to amplify the impact of this trusted and experienced workforce.
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.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 31:
Centene Corporation (CNC - Free Report) : This managed care company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 40.9% over the last 60 days.
Centene has a PEG ratio of 0.35 compared with 1.28 for the industry. The company possesses a Growth Score of B.
Valero Energy Corporation (VLO - Free Report) : This transportation fuels and petrochemical products company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 37.1% over the last 60 days.
Valero Energy has a PEG ratio of 0.23 compared with 0.41 for the industry. The company possesses a Growth Score of A.
monday.com Ltd. (MNDY - Free Report) : This cloud-based work management software company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.8% over the last 60 days.
monday.com has a PEG ratio of 0.99 compared with 12.51 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Nine-day tour offers free vision and dental screenings to bolster access to critical health services in communities across the state.
, /PRNewswire/ -- Today, Coordinated Care, Washington's trusted healthcare partner and wholly owned subsidiary of the Centene Corporation (NYSE: CNC), is launching a nine-day, statewide healthcare tour, bringing Centene's vision and dental health vans, "SeeMore" and "Flossy," to communities across Washington.
"Flossy" van travelling across the state to bring dental screenings to families in need.
"SeeMore" van travelling across the state to bring vision screenings and eyeglasses to families in need. The tour will increase access to critical health services for rural communities by taking healthcare on the road and meeting people where they are – offering free prescription glasses, vision and dental screenings, and fluoride treatments. These services will be available to all members of the public, regardless of Coordinated Care membership, with no appointment needed on a first-come, first-served basis.
"Access to preventive care – like a vision and dental screening, a pair of glasses – can make an enormous difference in someone's health and quality of life," said Beth Johnson, CEO of Coordinated Care. "Geography shouldn't determine a family's access to proactive, preventative care. By bringing these vans directly into communities where people live, work, and go to school, especially rural communities that may lack access to these services, we're removing barriers and making it easier for families across Washington state to get the high-quality care they deserve."
The dental van "Flossy" will offer a free dental screening for kids and adults, and fluoride treatment for ages 4-18, and every attendee – not just those screened – will receive a free dental kit that includes a toothbrush, toothpaste, and floss. "SeeMore," the vision van, will offer free vision screenings and eyeglass prescriptions, available as single vision or line bifocals. Patients who need new glasses can choose frames onsite and have them shipped to their home within a month. Free reading glasses and sunglasses will also be available.
"When more people have fair access to care, communities can thrive," said Vanetta Abdelatiff, president and CEO of Arcora Foundation. "We are proud to support Coordinated Care in addressing the immediate oral health needs of more people across the state—especially those in underinvested in communities— which supports our long term goal ensuring everyone can get the care they need when, where, and how they need it."
Each stop of the tour is expected to draw hundreds of attendees, with approximately 35 to 40 dental screening appointments and up to 200 vision screening appointments per day.
Recognizing that improving whole-person health goes beyond basic care, Coordinated Care is partnering with local organizations at each stop to connect attendees with additional resources, like fresh produce and shelf-stable food boxes from regional food banks; immunizations and blood pressure checks; free haircuts; books and school supplies; and more. Additionally, the Centene Foundation has donated funds for supplies such as diapers, formula, hygiene products, and clothes that will be distributed at tour stops in Spokane to families impacted by the recent wildfires.
The tour will also be joined by Walter Jones, a Seattle Seahawks legend and Pro Football Hall of Famer. Jones will close out the tour in Yakima, joining for a special giveaway of 1,000 free pairs of shoes for kids ahead of the start of the new school year.
"I'm always excited to work with Coordinated Care because they understand the importance of whole person care that meets families where they are," said Seattle Seahawks legend Walter Jones. "I'm joining their statewide vision and dental tour with the last stop in Yakima, where we'll also be sending 1,000 kids home with a free pair of shoes. This is exactly the kind of whole-person support Washington families deserve, and I'm honored to be part of it."
For more information on the tour stops, click here. For questions about attending any tour stop, please contact Leanne Sangster at [email protected].
About Coordinated Care
Coordinated Care provides free and low-cost health insurance coverage to more than 300,000 Medicaid, foster care, Medicare and marketplace members across Washington, with more than 30,000 providers in-network. Coordinated Care is committed to transforming the health of the community one person at a time. They treat the whole person by breaking down barriers to accessing care, walking members through their benefits, and connecting them to the care they need. Coordinated Care is a Washington managed care organization and a wholly owned subsidiary of Centene Corporation, a leading healthcare enterprise committed to helping people live healthier lives. To learn more, visit https://www.coordinatedcarehealth.com/WA-first.html.
The maternal health program has delivered 88,000+ breast pumps and helped connect members to more than 177,000 prenatal and postpartum visits
, /PRNewswire/ -- Superior HealthPlan ("Superior"), a leading managed care organization in Texas and a company of Centene (NYSE: CNC), announced its Start Smart for Your Baby® program has supported more than 312,000 pregnancies since 2022.
The maternal health program connects new and expectant mothers with support before, during and after pregnancy, including offering breast pumps, care management, appointment reminders and dollar rewards for completing prenatal and postpartum visits. Since 2022, Superior has delivered more than 88,000 breast pumps to Texas mothers, and since 2023, the program has helped connect members to more than 177,000 prenatal and postpartum visits.
"As one of the largest Medicaid providers in Texas, we recognize our responsibility to support new and expectant mothers at every step of the way," said Dr. Rutu Ezhuthachan, Chief Medical Officer at Superior HealthPlan. "Our unique programs provide access to the comprehensive healthcare that our members need to help them and their babies get off to a healthy start."
In the U.S., Medicaid covers 40% of births nationwide and that number is even higher in Texas at nearly 46%, according to the latest data available. On average, Superior supports nearly 70,000 pregnancies each year in Texas.
About Start Smart for Your Baby®
When members notify Superior of their pregnancy, they are connected with the Start Smart for Your Baby® program, making it simple to access extra benefits and support during and after their pregnancy, including:
Breastfeeding support and helpful resources. Behavioral health support and information for emotional well-being during or after pregnancy. Care coordination with medical staff and providers for high-risk or complex pregnancies. Assistance staying on track with prenatal and postpartum appointments. Connections to community resources for food, diapers and clothing. Assistance to help quit smoking, alcohol or drug use. Transportation to and from doctor visits (where available). To learn more, visit www.SuperiorHealthPlan.com/pregnancy.
About Superior HealthPlan
For more than 25 years, Superior HealthPlan has offered high-quality health care to Texans and is now a leading managed care company providing services to more than 1.5 million people. Committed to transforming the health of the communities we serve, one person at a time, Superior supports active local involvement in all 254 Texas counties with more than 3,000 employees throughout the state. Since 2020, Superior has contributed $12.6 million in grants, sponsorships and employee giving, helping support low-income communities. Superior is a company of Centene, a leading healthcare enterprise that is committed to helping people live healthier lives. For more information, visit www.SuperiorHealthPlan.com.
Key Takeaways Bioventus offers products for osteoarthritis and surgical and non-surgical bone healing.Centene's earnings growth tops 100%, while estimates improved 40.9% over the past 60 days.Amneal and Cronos have strong earnings growth prospects, with estimates also improving. A rate hike is almost inevitable if inflation remains high, Federal Reserve officials believe, according to the minutes of the Fed’s latest policy meeting. A third of the committee members voted to hike interest rates last month, but the central bank preferred to adopt a wait-and-watch policy.
A rate hike influences the interest rates on various types of consumer debt, which could impact buyers’ spending power. Wall Street has been turbulent for the past two months, and a rate hike could keep markets volatile for longer.
Given this situation, it would be ideal to invest in defensive stocks such as healthcare. In this regard, Bioventus Inc. (BVS - Free Report) , Centene Corporation (CNC - Free Report) , Amneal Pharmaceuticals, Inc. (AMRX - Free Report) and Cronos Group Inc. (CRON - Free Report) are safe bets.
Fed Gearing up for Rate HikeThe Federal Reserve kept interest rates unchanged at its July Federal Open Market Committee (FOMC) meeting in the current range of 3.5-3.75%. Although this was anticipated, the Federal Reserve has long indicated that a rate hike is almost likely if inflation stays elevated.
Inflation climbed substantially in April and May, following a surge in oil prices owing to the U.S.-Iran war. Several market participants were anticipating a rate hike in July due to this. However, the central bank left rates unchanged after inflation declined in June and July.
Despite the decline, inflation remains sharply above the Fed’s 2% target. The minutes of the meeting show that the committee voted 9-3 to keep the federal funds rate unaltered. All three who voted against the decision were in favor of a 25-basis-point rate hike. These policymakers believe a small hike could help bring the situation under control to a greater extent than going for steeper hikes in the future.
The overnight borrowing rate influences the interest rates on various types of consumer debt, including mortgages, credit cards and auto loans.
Meanwhile, geopolitical tensions have escalated once again, with neither the United States nor Iran ready to get into negotiation talks. Earlier this week, the United States said that there are no immediate plans for any peace talks, nor is anything scheduled.
Oil prices have been surging once again on fears that the Middle East crisis could continue for a longer period. Higher oil prices could lead to a spike in inflation again, which will compel the Fed to hike interest rates.
4 Healthcare Stocks With UpsideBioventusBioventus Inc. delivers clinically proven, cost-effective products that help people heal quickly and safely. BVS includes offerings for osteoarthritis, surgical and non-surgical bone healing.
Bioventus has an expected earnings growth rate of 16.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. BVS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Centene CorporationCentene Corporation is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while also serving under-insured and uninsured individuals through member-focused services. CNC is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services. Centene operates a capitated managed-care model, under which it receives a fixed payment per member per month from government programs such as Medicaid, Medicare and ACA Marketplace plans.
Centene Corporation has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 40.9% over the past 60 days. CNC currently carries a Zacks Rank #1.
Amneal PharmaceuticalsAmneal Pharmaceuticals, Inc. is a diversified, global biopharmaceutical company that develops, manufactures, markets and distributes a broad portfolio of essential medicines. AMRX operates principally in the United States, India and Ireland, with executive offices in Bridgewater, NJ. Its platform spans generics, injectables, biosimilars and branded specialty medications.
Amneal Pharmaceuticals has an expected earnings growth rate of 22.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. AMRX currently sports a Zacks Rank #1.
Cronos GroupCronos Group Inc. engages in the investment in firms that are licensed to produce and sell medical marijuana. CRON’s portfolio includes In The Zone, Peace Naturals, Whistler Medical Marijuana Co., ABcann, Hydropothecary, Vert Medical and Evergreen Medicinal Supply.
Cronos Group has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. CRON currently has a Zacks Rank #2.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Centene (CNC - Free Report) Founded as a single health plan in Wisconsin in 1984, Centene Corporation has established itself as a national leader in healthcare services. It is today a well-diversified healthcare company that primarily provides a set of services to government sponsored healthcare programs, while also serving under-insured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
CNC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 13.33; value investors should take notice.
For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.42 to $4.89 per share. CNC boasts an average earnings surprise of +151.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CNC should be on investors' short list.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Centene (CNC - Free Report) . CNC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.35, while its industry has an average P/E of 16.32. Over the last 12 months, CNC's Forward P/E has been as high as 13.40 and as low as 4.41, with a median of 8.43.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CNC has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.29.
Value investors will likely look at more than just these metrics, but the above data helps show that Centene is likely undervalued currently. And when considering the strength of its earnings outlook, CNC sticks out as one of the market's strongest value stocks.
Health insurer Centene, one of the nation’s largest providers of Obamacare, said chief financial officer Drew Asher plans to step down from his role as chief financial officer in December of this year.
Centene
Health insurer Centene, one of the nation’s largest providers of Obamacare, said chief financial officer Drew Asher plans to step down from his role as chief financial officer in December of this year.
Asher, who Centene said Monday will retire from the company at the end of 2027, will be replaced by Chris Neczypor, who is new to the company and will join Centene in September “and work alongside Mr. Asher, assuming the Executive Vice President and Chief Financial Officer role on January 1, 2027,” Centene said. “Mr. Asher will remain with the company until his retirement to support a variety of strategic initiatives and ensure a smooth transition.”
The planned succession comes during a period of turbulence in the health insurance industry, particularly for companies like Centene that provide government-subsidized coverage to millions of Americans. In addition to providing 3.5 million people individual coverage under the Affordable Care Act, also known as Obamacare, Centene also helps several states administer Medicaid coverage for low-income Americans. Like other health insurers, Centene has been battling the rising medical expenses of its health plan members but the company’s most recent quarter showed a profit of more than $1 billion and evidence the insurer is getting a better handle on rising costs of people in its commercial and government-subsidized health plans.
In a statement released Monday, Centene credited Asher, who became CFO in 2021, with guiding the company “through a period of significant growth and change,” Centene said. “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.”
In Neczypor, Centene said the company is getting “a seasoned executive with deep experience across corporate finance, strategy, transformation and capital management,” Centene said in a statement released Monday. “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.”
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Centene Chief Executive Officer Sarah M. London said Neczypor “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,” London added. "Our organization will benefit from his expertise, energy and perspective as we deliver on Centene's next phase of transformation and growth."
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.
Health insurer Centene (CNC.N) said on Monday Chris Neczypor would succeed Drew Asher as chief financial officer in January next year.
Asher has been Centene's CFO since 2021. He would step down from his role in December and retire at the end of 2027, the company said.
Neczypor, it said, would join the organization in September and work alongside Asher for a smooth transition.
Before joining Centene, Neczypor worked as executive vice president and CFO for Lincoln Financial, which provides life insurance, annuities, group benefits and retirement solutions.
The company's investment in The Los Angeles Trust for Children's Health will help students build leadership skills, learn to support their peers and connect to local health care services
, /PRNewswire/ -- Health Net, one of California's most experienced Medi-Cal managed care health plans and company of Centene Corporation (NYSE: CNC), announced a $412,000 grant to The Los Angeles Trust for Children's Health to expand its Wellness Youth Advocate (WYA) program into Compton Unified School District. The investment will help launch the program at Compton High School, Dominguez High School and Whaley Middle School.
The grant will help equip students with the knowledge, skills and resources they need to become advocates for their own health and wellbeing while supporting the health of their peers. The expansion builds on a program that currently engages more than 100 student Wellness Youth Advocates at 12 schools across Los Angeles County, reaching more than 20,000 students through peer-led health education campaigns.
"Young people understand the challenges facing their communities because they live them every day. When we invest in their leadership, we create opportunities for students to share their experiences, support one another and help shape healthier futures for themselves and their peers," said Dorothy Seleski, President of Medi-Cal at Health Net. "We're proud to partner with The Los Angeles Trust for Children's Health to help ensure more young people in Compton have a voice, feel supported and can access the services they need to thrive."
Through the peer-to-peer model, students will receive training in leadership, health education, mental health awareness, and navigating health care services. The program will also help connect eligible students to Enhanced Care Management (ECM) among other services.
"Every student deserves access to the resources and support they need to be healthy, succeed in school and reach their full potential," said Los Angeles County Supervisor Holly J. Mitchell. "The Los Angeles Trust for Children's Health has long been a champion for student wellbeing, and Health Net's investment will help expand opportunities for young people in Compton to learn about their health, support their peers and access critical services. This partnership is an important step toward creating healthier outcomes for our youth and our communities."
Expanding the program into Compton Unified School District will establish the model in a new district while creating opportunities to share best practices for school-based health initiatives and peer-led engagement. The grant will support recruitment and training of 60 student Wellness Youth Advocates over two school years.
The program will also convene students from across Los Angeles County through annual Youth-to-Youth Health Summits and support ongoing evaluation efforts to measure improvements in health literacy, leadership development, advocacy skills and access to care.
"We are grateful for Health Net's partnership and commitment to improving the health and wellbeing of young people," said Sarah Rodman, Executive Director at The LA Trust for Children's Health. "By expanding the Wellness Youth Advocate program into Compton Unified School District, we can empower more students to become leaders, strengthen peer support networks and help connect youth to the care and resources they need to succeed."
Over the last 5 years, Health Net has committed over $284 million to community-based initiatives that address the social drivers of health and improve access to care across California. This grant reflects Health Net's ongoing commitment to investing in innovative programs that improve health outcomes for children, youth and families in underserved communities.
About Health Net
Founded in California more than 45 years ago, Health Net, LLC ("Health Net"), a company of Centene Corporation, believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. With more than 117,000 of our network providers, Health Net serves more than three million members across the state. We also offer access to substance abuse programs, behavioral health services and managed healthcare products related to prescription drugs. We make these health plans and services available through Health Net and its subsidiaries: Health Net of California, Inc., Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to transforming the health of the communities we serve, one person at a time. Health Net and Centene Corporation employ more than 5,700 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.
Sponsorship helped 24 children from coastal North Carolina participate in educational, cultural and leadership-building activities
, /PRNewswire/ -- Carolina Complete Health, a subsidiary of the Centene Corporation (NYSE: CNC), sponsored the AMEXCAN Summer Camp, helping provide 24 children from coastal North Carolina with a summer experience centered on learning, leadership and personal growth.
Throughout the program, participants took part in educational workshops, cultural activities, leadership development and recreational programming designed to build confidence, encourage personal growth and foster meaningful connections.
Carolina Complete Health's sponsorship helped cover program costs, supplies and meals, ensuring every child could fully participate in the camp experience.
"Supporting young children means investing in opportunities that help them discover their strengths, build confidence and connect with their communities," said Lori Keane, director of marketing, at Carolina Complete Health at Carolina Complete Health. "Together with AMEXCAN, we are proud to help create meaningful summer experiences that allow children to learn, grow and thrive."
The sponsorship reflects Carolina Complete Health's broader commitment to improving the health and well-being of the communities it serves. By supporting community-based programs that promote education, leadership and belonging, the organization works to strengthen families and help build healthier communities across North Carolina.
About Carolina Complete Health
Carolina Complete Health is a provider-led Medicaid health plan committed to delivering high-quality care to Medicaid, Marketplace and Medicare beneficiaries in North Carolina. It was established through a unique partnership between Centene, the North Carolina Medical Society and the North Carolina Community Health Center Association.
About AMEXCAN
Founded in 2001, the Association of Mexicans in North Carolina, Inc. (AMEXCAN) is grassroots, nonprofit, statewide, and binational organization committed to the well-being and dignity of Mexican and Latino communities across North Carolina and Mexico. AMEXCAN promotes community participation and prosperity through advocacy, education, health, leadership development, cultural programs, and binational initiatives. By connecting families with trusted information, resources, and opportunities, AMEXCAN helps build stronger communities in which Latino residents are empowered to lead, participate, and thrive. For more information, visit www.amexcannc.org.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise committed to helping people live healthier lives. The company takes a local approach—with local brands and 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 one in 15 individuals across the nation, including Medicaid and Medicare members, 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, investors.centene.com.
, /PRNewswire/ -- Managed Health Services (MHS), a managed care entity that has been proudly serving the state of Indiana for 30 years and a Centene (NYSE: CNC) company, is proud to announce the recipients of the MHS Serves Workforce Support Program, a new statewide funding opportunity in partnership with Indiana Minority Health Coalition (IMHC) and Black Onyx Management, designed to strengthen workforce development programs that help Medicaid members prepare for employment, increase their income and build long-term economic stability.
MHS Serves
The program will provide funding to nonprofit community-based organizations across Indiana that are working to address employment barriers and expand workforce pathways for Medicaid-eligible populations. Selected partners will be required to serve a minimum number of participants annually and report on workforce outcomes including employment placement, credential completion and job retention. By supporting effective program practices and professional development, MHS Serves will fund organizations in counties including: Adams, Allen, Bartholomew, Boone, Brown, Carroll, Cass, Clark, Clinton, Crawford, Daviess, Dearborn, DeKalb, Decatur, Dubois, Elkhart, Fayette, Floyd, Franklin, Fulton, Gibson, Grant, Greene, Hamilton, Hancock, Harrison, Hendricks, Henry, Howard, Huntington, Jefferson, Jennings, Johnson, Knox, Kosciusko, LaGrange, Lake, Lawrence, Madison, Marion, Marshall, Martin, Miami, Monroe, Morgan, Noble, Ohio, Orange, Owen, Perry, Pike, Posey, Pulaski, Randolph, Ripley, Rush, Scott, Shelby, Spencer, St. Joseph, Starke, Steuben, Switzerland, Vanderburgh, Warrick, Wabash, Washington, Wayne, Wells, White, and Whitley through this initiative. Organizations receiving partnership funding include:
Aspire Indiana Health
Blue Jacket, Inc.
Easterseals Northern Indiana
Foster Success
Goodwill of Central and Southern Indiana
GROW Southwest Indiana Workforce Board
Horizon Education Alliance
Indiana University Health Foundation (Mosaic Center)
Indiana Plan for Equal Opportunities
Learning Network of Clinton County
Martin Luther King Multi-Service Center
River Valley Resources
Shepherd Community Center
South Central Region 8 Workforce Board
Southern Indiana Works
MHS Serves is proud to partner with these organizations to support the dismantling of barriers for employment while strengthening the resources that support workforce success in our communities. More information can be found at MHS Serves or by contacting [email protected].
About MHS
Managed Health Services (MHS) is a managed care entity that has been proudly serving the state of Indiana for 30 years through the Hoosier Healthwise and Hoosier Care Connect Medicaid programs and the Healthy Indiana Plan (HIP) Medicaid alternative program. MHS also offers Ambetter Health in the Indiana health insurance marketplace, and Wellcare, a Medicare Advantage plan. All of our plans include quality, comprehensive coverage with a provider network you can trust. Visit mhsindiana.com to learn more. MHS is a Centene company, a leading healthcare enterprise that is committed to helping people live healthier lives.
, /PRNewswire/ -- Following Gov. Newsom's declaration of a State of Emergency in Calaveras County, Health Net, one of California's most experienced Medi-Cal managed care health plans and company of Centene Corporation (NYSE: CNC), is taking immediate action to support those affected by the Gann Fire. The company's priority is ensuring both its members and healthcare providers have the resources they need during this critical time.
Member Prescription Information
During a declared State of Emergency, impacted members have two options to secure an emergency supply of their medications:
Members can fill their prescription at the original pharmacy if it is open. If the original pharmacy is not open, members can call Health Net at 1-800-400-8987. We will suspend refill limitations so they can get their prescriptions at an out-of-network pharmacy. Coping Support for Members
Members can call Health Net Behavioral Health Services for crisis support 24 hours a day, seven days a week by calling 1-800-400-8987 (TTY: 711). This includes:
Support to help them deal with grief, stress or trauma Referrals to mental health counselors, local services and telephone consultations Members: Video Medical Appointments
If members cannot reach their primary care provider during a declared State of Emergency, Health Net offers telehealth services at no cost. Members can find appointment instructions in two places:
On the back of their Health Net ID card On HealthNet.com after registering and signing in Access to Social Services
To connect with local community resources, members can call 2-1-1 or visit 211.org for help with:
Emergency shelter, food and transportation Social services and financial assistance Legal guidance from verified agencies Information for Healthcare Providers
During a declared State of Emergency, doctors and nurse practitioners may call Health Net at 1-800-641-7761 for assistance. To support these participating providers in affected areas, Health Net will:
Extend grace periods for notifications, beginning on the admission date, for acute services, post-acute care, durable medical equipment (DME), medical supplies and home health care services Waive prior authorization – however, our notification requirement will remain in effect despite relaxed deadlines In addition, Health Net will:
Authorize out-of-network services if a contracting provider or facility becomes unavailable Grant post-admission notification approvals for impacted facilities. Accept updated clinical documentation for continued-stay reviews. Authorize the replacement of medical equipment or supplies. Suspend prescription refill limitations for impacted enrollees Ongoing Support & Updates
As the situation evolves, Health Net may take further action to support members and providers. For the latest updates, visit HealthNet.com.
About Health Net
Founded in California more than 45 years ago, Health Net, a company of Centene Corporation, believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. With more than 117,000 of our network providers, Health Net serves more than three million members across the state. We also offer access to substance abuse programs, behavioral health services, employee assistance programs and managed healthcare products related to prescription drugs. We make these health plans and services available through Health Net, LLC and its subsidiaries: Health Net of California, Inc., Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to transforming the health of the communities we serve, one person at a time. Health Net and Centene employ more than 5,700 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.
Key Takeaways Centene benefits from pricing, Medicaid rate actions and Medicare drug plan momentum. Franklin Resources' strong distribution platform and first-mover advantage will support its revenue growth.Both stocks trade below or near industry valuation multiples, with earnings estimates improving. The astonishing rally of the artificial intelligence (AI) trade has been showing no signs of abatement even after more than three and a half years. In 2026, the AI trade maintained its northward journey albeit at a slow pace.
This year, several non-AI stocks are flourishing along with AI-powered stocks. We have selected two such stocks with a top Zacks Rank that are currently trading at a lucrative valuation. Investment in these stocks should be fruitful for the rest of 2026.
These stocks are: Centene Corp. (CNC - Free Report) and Franklin Resources Inc. (BEN - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Centene Corp.Centene has established itself as a national leader in healthcare services. It is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while serving under-insured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
CNC expects premium and service revenues in the range of $173-$177 billion in 2026, reflecting confidence in the business outlook. While dependence on government healthcare programs, elevated medical costs, and a high debt burden remain key risks, CNC’s improving profitability, better reimbursement and disciplined execution position it well for sustained earnings growth.
Attractive ValuationsThe stock price has jumped 61.7% year to date. Despite this, Centene currently has a forward P/E of 13.45X for the current financial year, well below 18.50X of the industry. CNC currently has a forward P/S of 0.16X, below 0.29X of the industry. It currently has a forward P/B of 1.44X, compared with 2.40X of the industry.
Solid Estimate RevisionsCentene has an expected revenue and earnings growth rate of 0.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.8% over the last seven days.
CNC has an expected revenue and earnings growth rate of -1.6% and 8.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.1% over the last seven days.
Franklin Resources Inc.Franklin Resources derives most of its operating revenues and net income by offering investment management and related services to retail mutual funds, institutional and high-net-worth investors in jurisdictions worldwide. The mutual funds and other products are sold to the public under different brands.
BEN’s fiscal third-quarter 2026 results were supported by higher revenues and record assets under management (AUM). BEN’s strong distribution platform and first-mover advantage will continue to support revenue growth. Its earnings surpassed estimates in each of the four trailing quarters.
Moreover, strategic initiatives, including the 250 Digital acquisition and MoonPay partnership, have strengthened BEN’s investment platform and support AUM growth. A decent liquidity profile also reduces debt repayment risk.
Attractive ValuationsThe stock price has jumped 40.3% year to date. Despite this, Franklin Resources currently has a forward P/E of 11.80X for the current financial year, below 11.89X of the industry. BEN currently has a forward P/S of 1.84X, well below 3.20X of the industry. It currently has a forward P/B of 1.33X, compared with 1.61X of the industry.
Solid Estimate RevisionsFranklin Resources has an expected revenue and earnings growth rate of 5.7% and 28.8%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days.
BEN has an expected revenue and earnings growth rate of 3.3% and 10.3%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.6% over the last seven days.
The investment helps five local organizations respond to historic flooding across the Hill Country and South-Central Texas
, /PRNewswire/ -- Superior HealthPlan and Centene Foundation, the philanthropic arm of Centene Corporation (NYSE: CNC), today announced an important investment aimed at addressing flood relief efforts to help Texas communities access resources following recent flooding. This comes as families across the Hill Country and South-Central Texas recover from rainfall that caused catastrophic river flooding, evacuations, infrastructure damage, and loss of life. The funding will be split between five organizations, including OneStar Foundation, Federally Qualified Health Centers (FQHC), and food banks.
Centene Foundation "For a second year in a row, thousands of Texans are facing the devastating impact of severe flooding and storms," said Superior HealthPlan President & CEO, Mitch Wasden. "By supporting local organizations deeply rooted in these communities, we can help connect families and individuals with critical resources as they begin to recover."
Earlier this month, state officials issued disaster declarations covering 59 counties, with the most severe impacts concentrated in Blanco, Gillespie, Kendall, Kerr and Uvalde Counties. The following organizations will receive funding to support ongoing recovery efforts:
OneStar Foundation: Donations made to OneStar Foundation will be directed to the Rebuild Texas Fund to help ensure resources are available to respond quickly to urgent challenges, address unmet needs as they arise and support long-term recovery for communities in the months ahead. San Antonio Food Bank & Central Texas Food Bank: Together, the food banks will support Blanco, Gillespie, Kendall, Kerr and Uvalde Counties by providing food distribution, emergency supplies and recovery assistance for residents facing displacement, food insecurity and other disaster-related hardships. Community Health Development, Inc. (CHDI) & Frontera Healthcare Network: These FQHCs will support communities across Uvalde, Concho, Gillespie, Kimble, Mason, McCulloch and Menard Counties by leading local recovery efforts, providing community-based and health-related assistance, and coordinating resources for individuals and families impacted by the flooding. "Recovery is a long journey, and recent flooding across Texas is a reminder that communities often face new challenges, even as they continue rebuilding from previous disasters," said Chris Bugbee, President & CEO of OneStar Foundation. "We are deeply grateful to Superior HealthPlan and Centene Foundation for recognizing the importance of sustained, flexible support by investing in the Rebuild Texas Fund. Their generosity helps ensure we can respond quickly to evolving needs while standing alongside affected communities for the long road to recovery."
"Community Health Development, Inc. is deeply grateful to Superior HealthPlan and Centene Foundation for their generous investment in our community," said Mayela Castañon, CEO of CHDI. "Their immediate support will help families affected by the devastating floods recover, rebuild and access the essential resources they need during this difficult time."
"This generous support from Superior HealthPlan and Centene Foundation will strengthen Frontera Healthcare Network's ability to respond to the immediate and long-term needs of families affected by the devastating floods," said Mikki Hand, CEO of Frontera Healthcare Network. "In rural communities, recovery requires more than rebuilding. It requires restoring access to healthcare, behavioral health services, essential resources and a sense of stability. We are deeply grateful for this partnership and for the Foundation's commitment to helping our communities recover, rebuild, and become more resilient."
Each year, Centene Foundation partners with local organizations to support initiatives focused on food insecurity, well-being, and access to care. In 2025, Centene Foundation invested $34.9 million in 209 nonprofit organizations across 29 states and the District of Columbia – pairing local trust with national expertise to deliver improvements in community health and well-being. Learn more about the overall impact here.
About Superior HealthPlan
For more than 25 years, Superior HealthPlan has offered high-quality health care to Texans, and is now a leading managed care company providing services to more than 1.5 million people. Committed to transforming the health of the communities we serve, one person at a time, Superior supports active local involvement in all 254 Texas counties with 3,500 employees throughout the state. Since 2020, Superior has contributed $12.3 million in grants, sponsorships and employee giving, helping support low-income communities. Superior is a company of Centene, a leading healthcare enterprise that is committed to helping people live healthier lives. For more information, visit www.SuperiorHealthPlan.com.
About Centene Foundation
The Centene Foundation (the "Foundation"), a private nonprofit focused on investing in economically challenged communities, is the philanthropic arm of Centene Corporation (NYSE: CNC) ("Centene"). The Foundation supports projects and initiatives strategically aligned with Centene's mission-driven culture and enhances the work Centene is doing to remove the barriers to wellness underserved and low-income populations face. The Foundation is committed to addressing drivers of health and improving health equity in three distinct areas of focus: healthcare, social services and education. To learn more, visit the Centene Foundation's website.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Centene (CNC - Free Report) Founded as a single health plan in Wisconsin in 1984, Centene Corporation has established itself as a national leader in healthcare services. It is today a well-diversified healthcare company that primarily provides a set of services to government sponsored healthcare programs, while also serving under-insured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.
CNC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 13.22; value investors should take notice.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.25 to $4.71 per share. CNC boasts an average earnings surprise of +151.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CNC should be on investors' short list.
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.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Centene (CNC - Free Report) is a stock many investors are watching right now. CNC is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.35. This compares to its industry's average Forward P/E of 17.48. Over the past 52 weeks, CNC's Forward P/E has been as high as 13.40 and as low as 4.41, with a median of 8.43.
We also note that CNC holds a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CNC's PEG compares to its industry's average PEG of 0.89. CNC's PEG has been as high as 0.98 and as low as 0.38, with a median of 0.77, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CNC has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Centene is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNC feels like a great value stock at the moment.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 30th:
The Travelers Companies (TRV - Free Report) : This company, which provides a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.5% over the last 60 days.
The Travelers Companies' shares gained 28% over the last three month compared with the S&P 500’s gain of 1.5%. The company possesses a Momentum Score of A.
Nomura (NMR - Free Report) : This leading financial services group in Japan, which has worldwide operations, providing a wide range of value-added financial services and competitive products, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days.
Nomura's shares gained 20% over the last three month compared with the S&P 500’s gain of 1.5%. The company possesses a Momentum Score of A.
Centene (CNC - Free Report) : This company, which has established itself as a national leader in healthcare services, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.
Centene's shares gained 15.2% over the last three month compared with the S&P 500’s gain of 1.5%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Key Takeaways CNC raised 2026 adjusted EPS guidance to more than $4.80 after second-quarter results.Marketplace outlook improved as CNC raised expected 2026 pretax margin to 4.5%-5%.CNC reported Medicaid HBR of 93.9% and continued efforts on cost management. Centene Corporation (CNC - Free Report) used its second-quarter 2026 earnings call to highlight improving profitability across its major businesses, supported by stronger Marketplace results, Medicare execution and disciplined cost management. Management also raised its full-year adjusted earnings per share (EPS) outlook.
The discussion focused on margin restoration efforts, Medicaid enrollment trends and the company’s approach to navigating regulatory changes while investing in technology and operational efficiency.
CNC Reframes Medicaid Margin PathCEO Sarah London said that Medicaid performance remained aligned with expectations, with execution on medical cost management helping offset membership changes. The company ended the quarter with 12.1 million Medicaid members and reported a Medicaid health benefits ratio (HBR) of 93.9%.
London noted that Medicaid membership declined more than previously expected because of increased enrollment and eligibility activity in certain states. Management adjusted its outlook for full-year Medicaid membership to an 8% to 9% decline from Dec. 31, 2025 levels.
The company said that rate developments remained constructive, increasing its full-year 2026 Medicaid composite rate forecast to roughly 5% from roughly 4.5%. Management highlighted continued work with state partners ahead of OB3 implementation and efforts to reduce unnecessary coverage disruptions.
Centene Advances Medicare PositionCentene reported continued strength in Medicare, with management pointing to solid performance in both Medicare Advantage and the Prescription Drug Plan (PDP) business. The Medicare segment delivered an HBR of 89.5% in the quarter.
London said that PDP performance benefited from prior-period items and underlying execution, with the company now expecting a 2026 PDP pretax margin above 3% compared with its earlier expectation of 2%.
Management also said that Medicare Advantage continued moving closer to breakeven results for 2026. The company plans to further focus on its Medicare strategy on dual-eligible populations by leveraging its Medicaid expertise.
CNC Sees Marketplace ProfitabilityMarketplace was a key focus of the earnings call after Centene improved its outlook for the business. Management raised its expected 2026 Marketplace pretax margin to 4.5%-5% from the previous 3% outlook.
London attributed the improvement to better-than-expected utilization trends, updated market acuity information and favorable 2025 risk adjustment development. The company received $180 million of favorable 2025 CMS risk adjustment reconciliation in the quarter.
The company ended the quarter with approximately 3.5 million Marketplace members. Management said that membership should continue to decline as the year progresses, reflecting normal seasonality and ongoing CMS program integrity efforts.
Centene Pushes Cost OptimizationCentene continued emphasizing enterprise efficiency efforts, including greater use of technology and artificial intelligence. London said that the company is focusing on simplifying operations, improving member experiences and creating a more efficient cost structure.
CFO Andrew Asher highlighted a second-quarter adjusted SG&A expense ratio of 6.9%, down from 7.1% a year earlier. Asher attributed the improvement to scale, expense discipline and business mix changes.
Management also discussed AI initiatives across the organization, including applications in forecasting, fraud detection and legal operations. The company said that it is prioritizing foundational capabilities to expand AI use while maintaining compliance in a regulated environment.
CNC Faces Medicaid Enrollment QuestionsDuring Q&A, a JPMorgan analyst asked about the changing Medicaid membership mix and whether higher-acuity exits represented a pull-forward of future regulatory impacts. London said that the company was monitoring enrollment activity and accounting for potential acuity shifts in its guidance.
A Wolfe Research analyst questioned Medicaid margin progression amid regulatory changes. London said that the company expects margin recovery efforts to continue, supported by rate actions, operational execution and targeted support for eligible members.
Analysts also questioned Marketplace margin improvement and risk adjustment assumptions. Management said that updated market data confirmed its earlier pricing actions and supported the revised profitability outlook.
Centene Maintains Strategic FocusCentene reported second-quarter adjusted EPS of $2.51, beating the Zacks Consensus Estimate of $0.89. The company’s revenues of $53.60 billion missed the consensus estimate of $47.53 billion. CNC raised 2026 adjusted EPS guidance to more than $4.80 from more than $3.40.
Management maintained its focus on margin restoration, operational efficiency and investments designed to improve healthcare delivery. The company ended the quarter with $715 million of cash available for general corporate use and reduced its debt-to-capital ratio to 41.6%.
Zacks Rank and Style Score SignalsCentene currently carries Zacks Rank #3 (Hold). The Zacks Rank reflects earnings estimate revisions and is designed to help indicate the potential direction of a stock over the next one to three months. The Rank can change after earnings as analysts update their estimates. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of A, a Growth Score of A, a Momentum Score of B and a VGM Score of A. Zacks Style Scores rate stocks from A to F based on characteristics such as value, growth and momentum, with higher scores representing stronger attributes within each style category.
-- Second Quarter GAAP Diluted Earnings Per Share of $2.19; Adjusted Diluted Earnings Per Share of $2.51 --
-- Increases 2026 GAAP Diluted EPS Guidance: Greater than $3.11 & Adjusted Diluted EPS Greater than $4.80 --
Commercial HBR of 79.2%, demonstrating significant year-over-year improvement in profitability. Medicare segment HBR of 89.5%, including fundamental outperformance in both Medicare Advantage and PDP. Medicaid HBR of 93.9%, in-line with expectations and reflecting continued execution in management of medical cost trend. Guidance increase resulting from underlying strength of the business, including approximately $0.50 of non-recurring items in Medicare and Commercial segments. , /PRNewswire/ -- Centene Corporation (NYSE: CNC) (the Company) announced today its financial results for the second quarter ended June 30, 2026. In summary, the 2026 second quarter results were as follows:
Total revenues (in millions)
$ 53,579
Premium and service revenues (in millions)
$ 44,375
Health benefits ratio
89.6 %
SG&A expense ratio
7.0 %
Adjusted SG&A expense ratio (1)
6.9 %
GAAP diluted earnings per share
$ 2.19
Adjusted diluted earnings per share (1)
$ 2.51
Total cash flow provided by operations (in millions)
$ 3,590
(1)
Represents a non-GAAP financial measure. A full reconciliation of the adjusted diluted earnings per share (EPS) and adjusted selling, general and administrative (SG&A) expenses is shown in the Non-GAAP Financial Presentation section of this release.
"Our second quarter results and improved full-year outlook represent meaningful milestones on our path to restoring profitability and increasing shareholder value," said Chief Executive Officer of Centene, Sarah M. London. "We are excited by the positive momentum we have built and remain focused on our goal of delivering industry-leading health outcomes with an industry-leading cost structure."
Membership
The following table sets forth membership by line of business:
June 30,
2026
2025
Traditional Medicaid (1)
10,745,800
11,227,400
High Acuity Medicaid (2)
1,364,900
1,592,300
Total Medicaid
12,110,700
12,819,700
Marketplace
3,494,700
5,862,800
Individual and Commercial Group (3)
497,000
449,700
Total Commercial
3,991,700
6,312,500
Medicare (4)
980,000
1,026,900
Medicare Prescription Drug Plan (PDP)
8,803,000
7,845,800
Total at-risk membership
25,885,400
28,004,900
(1)
Membership includes Temporary Assistance for Needy Families (TANF), Medicaid Expansion, Children's Health Insurance Program (CHIP), Foster Care, and Behavioral Health.
(2)
Membership includes Aged, Blind, or Disabled (ABD), Intellectual and Developmental Disabilities (IDD), Long-Term Services and Supports (LTSS), and Medicare-Medicaid Plans (MMP) Duals. The Company operated MMPs through December 31, 2025. In 2026 these members are included in Medicare as a result of the Centers for Medicare and Medicaid Services (CMS) transition to Dual Eligible Special Needs Plans (D-SNP) based integration.
(3)
Membership includes Commercial Group, Individual Coverage Health Reimbursement Arrangement (ICHRA) and Other Off-Exchange Individual.
(4)
Membership includes Medicare Advantage, Medicare Supplement, and Applicable Integrated Plans (AIPs) as a result of the CMS transition to D-SNP based integration in 2026.
Premium and Service Revenues
The following table sets forth supplemental revenue information ($ in millions):
Three Months Ended June 30,
2026
2025
% Change
Medicaid
$ 22,766
$ 21,723
5 %
Commercial
9,356
10,070
(7) %
Medicare (1)
11,057
9,450
17 %
Other
1,196
1,224
(2) %
Total premium and service revenues
$ 44,375
$ 42,467
4 %
(1)
Medicare includes Medicare Advantage, Medicare PDP and Medicare Supplement.
Statement of Operations: Three Months Ended June 30, 2026
For the second quarter of 2026, premium and service revenues increased 4% to $44.4 billion from $42.5 billion in the comparable period of 2025. The increase was primarily driven by premium yield and membership growth in the PDP business, rate increases in Marketplace and in the Medicaid business to address medical trend, Marketplace risk adjustment revenue transfer for the 2025 and 2026 benefit years, and state directed payments. The increases were partially offset by lower Marketplace and Medicaid membership. Health benefits ratio (HBR) of 89.6% for the second quarter of 2026 represents a decrease from 93.0% in the comparable period in 2025. The consolidated HBR benefited from a lower Marketplace HBR resulting from improved pricing and risk transfer reflecting the acuity of the Marketplace membership. The HBR also decreased due to rate and revenue increases and continued tangible progress in managing medical costs in the Medicaid business. The HBR benefited by the favorable resolution of programmatic elements for the 2025 benefit year in Medicare and was also driven by an increase to the premium deficiency reserve (PDR) in 2025 versus no PDR in 2026 for our Medicare Advantage business as a result of our progression towards profitability. The SG&A expense ratio was 7.0% for the second quarter of 2026, compared to 7.1% in the second quarter of 2025. The adjusted SG&A expense ratio was 6.9% for the second quarter of 2026, compared to 7.1% in the second quarter of 2025. The decreases were primarily driven by strong cost management, leveraging of expenses over higher revenues and reduced Marketplace membership, which operates at a meaningfully higher SG&A expense ratio, as well as overall discipline in Marketplace SG&A. The decreases were also driven by growth in the PDP business, which operates at a meaningfully lower SG&A expense ratio as compared to the overall company. The effective tax rate was 26.9% for the second quarter of 2026. For the second quarter of 2026, our effective tax rate on adjusted earnings was 26.5%. GAAP diluted EPS of $2.19 for the second quarter of 2026. Adjusted diluted EPS of $2.51 for the second quarter of 2026. Cash flow provided by operations for the second quarter of 2026 was $3.6 billion, primarily driven by net earnings and the timing of pass through, premium and other payments, partially offset by net improvement in 2025 risk adjustment transfer position. Balance Sheet
At June 30, 2026, the Company had cash, investments and restricted deposits of $44.8 billion and maintained $715 million of cash available for general corporate use. Medical claims liabilities totaled $20.3 billion. The Company's days in claims payable (DCP) was 47 days, a decrease of one day as compared to the first quarter of 2026 driven by timing of state directed payments.
During the second quarter of 2026, the Company repurchased $260 million of the Company's par value senior notes due 2027 and 2028. Following the senior note repurchase, total debt was $16.1 billion, which included no borrowings on the $4.0 billion Revolving Credit Facility at quarter end.
Outlook
Please refer to the Forward-Looking Statements, which should be reviewed in conjunction with the Company's 2026 outlook.
The Company is increasing total revenues guidance range by $6.0 billion to a range of $193.5 billion to $197.5 billion driven by premium tax revenue, Marketplace, and Medicaid. The Company is increasing premium and service revenues guidance range by $2.0 billion to a range of $173.0 billion to $177.0 billion driven by Marketplace and Medicaid. The Company is also increasing its investment and other income expectation by $50 million to $1.50 billion.
The Company is updating its 2026 GAAP diluted EPS guidance floor to greater than $3.11 and its 2026 adjusted diluted EPS guidance floor to greater than $4.80.
The Company's annual guidance for 2026 is as follows and will be discussed further on our conference call:
Full Year 2026
GAAP diluted EPS
> $3.11
Adjusted diluted EPS (1)
> $4.80
(1) A full reconciliation of adjusted diluted EPS is shown in the Non-GAAP Financial Presentation section of this
release.
Full Year 2026
Low
High
Total revenues (in billions)
$ 193.5
$ 197.5
Premium and service revenues (in billions)
$ 173.0
$ 177.0
HBR
90.5 %
91.3 %
SG&A expense ratio
7.2 %
7.8 %
Adjusted SG&A expense ratio (2)
6.9 %
7.5 %
Effective tax rate
26.5 %
27.5 %
Adjusted effective tax rate (3)
25.5 %
26.5 %
Diluted shares outstanding (in millions)
497.0
500.0
(2) Adjusted SG&A expense ratio excludes severance costs due to enterprise optimization and contract exits of
approximately $355 million to $405 million, enterprise optimization third-party vendor costs of approximately
$85 million to $115 million and acquisition and divestiture related expenses of approximately $750 thousand.
(3) Adjusted effective tax rate excludes income tax effects of adjustments of approximately $268 million to
$272 million.
Conference Call
As previously announced, the Company will host a conference call Tuesday, July 28, 2026, at 8:30 a.m. ET to review the financial results for the second quarter ended June 30, 2026.
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 (toll free) in the U.S. and Canada; +1-412-902-6506 (toll) from abroad, including the following Elite Entry Number: 4306002 to expedite caller registration; or via a live, audio webcast on the Company's website at www.centene.com, under the Investors section.
A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months or until 11:59 p.m. ET on Tuesday, July 27, 2027, at the aforementioned URL. In addition, a digital audio playback will be available until 9 a.m. ET on Tuesday, August 4, 2026, by dialing 1-855-669-9658 (toll free) in North America, or +1-412-317-0088 (toll) from abroad, and entering access code 6500508.
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally in evaluating the Company's performance and for planning purposes, by allowing management to focus on period-to-period changes in the Company's core business operations, and in determining employee incentive compensation. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The Company strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP financial measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Specifically, the Company believes the presentation of non-GAAP financial measures that excludes amortization of acquired intangible assets, acquisition and divestiture related expenses, as well as other items, allows investors to develop a more meaningful understanding of the Company's core performance over time.
The tables below provide reconciliations of non-GAAP items ($ in millions, except per share data):
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
GAAP net earnings (loss) attributable to Centene
$ 1,091
$ (253)
$ 2,632
$ 1,058
Amortization of acquired intangible assets
161
173
327
346
Acquisition and divestiture related expenses
—
1
—
1
Other adjustments (1)
46
58
53
61
Income tax effects of adjustments (2)
(50)
(58)
(92)
(100)
Adjusted net earnings (loss)
$ 1,248
$ (79)
$ 2,920
$ 1,366
(1)
Other adjustments include the following pre-tax items:
2026:
(a)
for the three months ended June 30, 2026: enterprise optimization costs of $37 million, severance costs due to enterprise optimization and contract exits of $15 million, and net gain on debt extinguishment of $6 million;
(b)
for the six months ended June 30, 2026: enterprise optimization costs of $50 million, severance costs due to enterprise optimization and contract exits of $18 million, gain on sale of a provider network in the Other segment of $10 million, net gain on real estate transactions of $4 million, and net gain on debt extinguishment of $1 million.
2025:
(a)
for the three months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $55 million and a reduction to the previously reported gain on real estate transactions of $3 million;
(b)
for the six months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $55 million, a reduction to the previously reported gain on the sale of Magellan Rx of $10 million, and a net gain on real estate transactions of $4 million.
(2)
The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment.
Three Months Ended
June 30,
Six Months Ended
June 30,
Annual Guidance
December 31, 2026
2026
2025
2026
2025
GAAP diluted earnings (loss) per share attributable to
Centene
$ 2.19
$ (0.51)
$ 5.30
$ 2.13
greater than $3.11
Amortization of acquired intangible assets
0.32
0.35
0.66
0.70
~$1.30
Other adjustments (3)
0.09
0.12
0.11
0.12
~$0.93
Income tax effects of adjustments (4)
(0.09)
(0.12)
(0.19)
(0.20)
~$(0.54)
Adjusted diluted earnings (loss) per share
$ 2.51
$ (0.16)
$ 5.88
$ 2.75
greater than $4.80
(3)
Other adjustments include the following pre-tax items:
2026:
(a)
for the three months ended June 30, 2026: enterprise optimization costs of $0.07 per share ($0.06 after-tax), severance costs due to enterprise optimization and contract exits of $0.03 per share ($0.02 after-tax), and net gain on debt extinguishment of $0.01 per share ($0.01 after-tax);
(b)
for the six months ended June 30, 2026: enterprise optimization costs of $0.10 per share ($0.08 after-tax), severance costs due to enterprise optimization and contract exits of $0.04 per share ($0.03 after-tax); gain on sale of a provider network in the Other segment of $0.02 per share ($0.02 after-tax), and net gain on real estate transactions of $0.01 per share ($0.01 after-tax);
(c)
for the year ended December 31, 2026, an estimated: $0.76 per share ($0.58 after-tax) of severance costs, $0.20 per share ($0.15 after-tax) of enterprise optimization costs, $0.02 per share ($0.02 after-tax) gain on sale of a provider network in the Other segment, and a $0.01 per share ($0.01 after-tax) net gain on real estate transactions.
2025:
(a)
for the three months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $0.11 per share ($0.08 after-tax), and a reduction to the previously reported gain on real estate transactions of $0.01 per share ($0.01 after-tax);
(b)
for the six months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $0.11 per share ($0.08 after-tax), a reduction to the previously reported gain on the sale of Magellan Rx of $0.02 per share ($0.02 after-tax), and a net gain on real estate transactions of $0.01 per share ($0.01 after-tax).
(4)
The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment.
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
GAAP selling, general and administrative expenses
$ 3,103
$ 3,036
$ 6,500
$ 6,389
Less:
Acquisition and divestiture related expenses
—
1
—
1
Severance
15
—
18
—
Enterprise optimization costs
37
—
50
—
Adjusted selling, general and administrative expenses
$ 3,051
$ 3,035
$ 6,432
$ 6,388
To provide clarity on the way management defines certain key metrics and ratios, the Company is providing a description of how the metric or ratio is calculated as follows:
Health Benefits Ratio (HBR) (GAAP) = Medical costs divided by premium revenues. SG&A Expense Ratio (GAAP) = Selling, general and administrative expenses divided by premium and service revenues. Adjusted SG&A Expense Ratio (non-GAAP) = Adjusted selling, general and administrative expenses divided by premium and service revenues. Adjusted Effective Tax Rate (non-GAAP) = GAAP income tax expense (benefit) excluding the income tax effects of adjustments to net earnings divided by adjusted earnings (loss) before income tax expense. Adjusted Net Earnings (non-GAAP) = Net earnings less amortization of acquired intangible assets, less acquisition and divestiture related expenses, as well as adjustments for other items, net of the income tax effect of the adjustments. Adjusted Diluted EPS (non-GAAP) = Adjusted net earnings divided by weighted average common shares outstanding on a fully diluted basis. Debt to Capitalization Ratio (GAAP) = Total debt, divided by total debt plus total stockholder's equity. Average Medical Claims Expense (GAAP) = Medical costs for the period divided by number of days in such period. Average medical claims expense is most often calculated for the quarterly reporting period. Days in Claims Payable (GAAP) = Medical claims liabilities divided by average medical claims expense. Days in claims payable is most often calculated for the quarterly reporting period. In addition, the following terms are defined as follows:
State-directed Payments: Payments directed by a state that have minimal risk but are administered as a premium adjustment. These payments are recorded as premium revenue and medical costs at close to a 100% HBR. In many instances, the Company has little visibility to the timing of these payments until they are paid by a state. Pass-through Payments: Non-risk supplemental payments from a state that the Company is required to pass through to designated contracted providers. These payments are recorded as premium tax revenue and premium tax expense. 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, https://investors.centene.com.
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, including our estimated severance costs in connection with the voluntary separation program, is a forward-looking statement. 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 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.
CENTENE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except shares in thousands and per share data in dollars)
June 30,
2026
December 31,
2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 24,151
$ 17,888
Premium and trade receivables
18,076
18,105
Short-term investments
2,906
2,432
Other current assets
1,552
1,945
Total current assets
46,685
40,370
Long-term investments
16,302
17,035
Restricted deposits
1,487
1,412
Property, software and equipment, net
2,130
2,037
Goodwill
10,835
10,835
Intangible assets, net
4,203
4,530
Other long-term assets
1,370
528
Total assets
$ 83,012
$ 76,747
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
STOCKHOLDERS' EQUITY
Current liabilities:
Medical claims liability
$ 20,262
$ 20,544
Accounts payable and accrued expenses
17,965
13,796
Return of premium payable
1,751
1,592
Unearned revenue
706
736
Current portion of long-term debt
75
50
Total current liabilities
40,759
36,718
Long-term debt
16,030
17,351
Deferred tax liability
756
833
Other long-term liabilities
2,810
1,789
Total liabilities
60,355
56,691
Commitments and contingencies
Redeemable noncontrolling interests
23
23
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000 shares; no shares issued or
outstanding at June 30, 2026 and December 31, 2025
—
—
Common stock, $0.001 par value; authorized 800,000 shares; 625,693 issued and
493,987 outstanding at June 30, 2026, and 623,463 issued and 491,757
outstanding at December 31, 2025
1
1
Additional paid-in capital
20,890
20,777
Accumulated other comprehensive (loss)
(194)
(58)
Retained earnings
11,306
8,674
Treasury stock, at cost (131,706 and 131,706 shares, respectively)
(9,441)
(9,441)
Total Centene stockholders' equity
22,562
19,953
Nonredeemable noncontrolling interest
72
80
Total stockholders' equity
22,634
20,033
Total liabilities, redeemable noncontrolling interests and stockholders' equity
$ 83,012
$ 76,747
CENTENE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except shares in thousands and per share data in dollars)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues:
Premium
$ 43,582
$ 41,740
$ 87,469
$ 83,452
Service
793
727
1,561
1,504
Premium and service revenues
44,375
42,467
89,030
84,956
Premium tax
9,204
6,275
14,493
10,406
Total revenues
53,579
48,742
103,523
95,362
Expenses:
Medical costs
39,029
38,808
77,332
75,311
Cost of services
729
641
1,431
1,339
Selling, general and administrative expenses
3,103
3,036
6,500
6,389
Depreciation expense
139
141
273
283
Amortization of acquired intangible assets
161
173
327
346
Premium tax expense
9,220
6,346
14,601
10,563
Impairment
—
55
—
55
Total operating expenses
52,381
49,200
100,464
94,286
Earnings (loss) from operations
1,198
(458)
3,059
1,076
Other income (expense):
Investment and other income
435
371
842
753
Gain on debt extinguishment
6
—
1
—
Interest expense
(153)
(170)
(317)
(340)
Earnings (loss) before income tax
1,486
(257)
3,585
1,489
Income tax expense
399
2
959
434
Net earnings (loss)
1,087
(259)
2,626
1,055
Loss attributable to noncontrolling interests
4
6
6
3
Net earnings (loss) attributable to Centene Corporation
$ 1,091
$ (253)
$ 2,632
$ 1,058
Net earnings (loss) per common share attributable to Centene Corporation:
Basic earnings (loss) per common share
$ 2.21
$ (0.51)
$ 5.34
$ 2.14
Diluted earnings (loss) per common share
$ 2.19
$ (0.51)
$ 5.30
$ 2.13
Weighted average number of common shares outstanding:
Basic
493,819
493,548
492,949
494,896
Diluted
497,637
493,548
496,605
496,328
CENTENE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)
Six Months Ended June
30,
2026
2025
Cash flows from operating activities:
Net earnings
$ 2,626
$ 1,055
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization
600
629
Stock compensation expense
126
94
Impairment
—
55
(Gain) loss on debt extinguishment
(1)
—
Deferred income taxes
(34)
(116)
Loss on divestitures
—
10
Changes in assets and liabilities
Premium and trade receivables
(6)
(1,801)
Other assets
(488)
(543)
Medical claims liabilities
(268)
1,809
Unearned revenue
(30)
21
Accounts payable and accrued expenses
4,249
209
Other long-term liabilities
1,162
1,857
Other operating activities, net
20
16
Net cash provided by operating activities
7,956
3,295
Cash flows from investing activities:
Capital expenditures
(374)
(343)
Purchases of investments
(2,328)
(3,593)
Sales and maturities of investments
2,438
2,508
Net cash (used in) investing activities
(264)
(1,428)
Cash flows from financing activities:
Proceeds from long-term debt
—
750
Payments and repurchases of long-term debt
(1,304)
(1,707)
Common stock repurchases
(33)
(473)
Proceeds from common stock issuances
18
18
Other financing activities, net
(3)
(12)
Net cash (used in) financing activities
(1,322)
(1,424)
Net increase in cash, cash equivalents and restricted cash and cash equivalents
6,370
443
Cash and cash equivalents reclassified (to) held for sale
(73)
—
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period
17,957
14,156
Cash, cash equivalents and restricted cash and cash equivalents, end of period
$ 24,254
$ 14,599
Supplemental disclosures of cash flow information:
Interest paid
$ 302
$ 320
Income tax net payments (refunds)
$ (225)
$ 504
The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported within the Consolidated
Balance Sheets to the totals above:
June 30,
2026
2025
Cash and cash equivalents
$ 24,151
$ 14,513
Restricted cash and cash equivalents, included in restricted deposits
103
86
Total cash, cash equivalents and restricted cash and cash equivalents
$ 24,254
$ 14,599
CENTENE CORPORATION
SUPPLEMENTAL FINANCIAL DATA
Q2
Q1
Q4
Q3
Q2
2026
2026
2025
2025
2025
MEMBERSHIP
Traditional Medicaid (1)
10,745,800
10,923,100
10,932,600
11,115,400
11,227,400
High Acuity Medicaid (2)
1,364,900
1,503,800
1,585,800
1,591,000
1,592,300
Total Medicaid
12,110,700
12,426,900
12,518,400
12,706,400
12,819,700
Marketplace
3,494,700
3,582,200
5,541,400
5,828,100
5,862,800
Individual and Commercial Group (3)
497,000
481,000
452,500
447,900
449,700
Total Commercial
3,991,700
4,063,200
5,993,900
6,276,000
6,312,500
Medicare (4)
980,000
1,002,200
1,002,600
1,013,200
1,026,900
Medicare PDP
8,803,000
8,780,600
8,118,600
7,972,500
7,845,800
Total at-risk membership
25,885,400
26,272,900
27,633,500
27,968,100
28,004,900
(1) Membership includes TANF, Medicaid Expansion, CHIP, Foster Care and Behavioral Health.
(2) Membership includes ABD, IDD, LTSS and MMPs. The Company operated MMPs through December 31, 2025. In 2026 these members are included in
Medicare as a result of the CMS transition to D-SNP based integration.
(3) Membership includes Commercial Group, ICHRA and Other Off-Exchange Individual.
(4) Membership includes Medicare Advantage, Medicare Supplement and AIPs as a result of the CMS transition to D-SNP based integration in 2026.
NUMBER OF EMPLOYEES
59,800
61,000
61,100
60,900
60,300
DAYS IN CLAIMS PAYABLE
47
48
46
48
47
CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions)
Regulated
$ 43,015
$ 40,239
$ 37,289
$ 37,574
$ 36,403
Unregulated
1,831
1,533
1,478
1,259
1,086
Total
$ 44,846
$ 41,772
$ 38,767
$ 38,833
$ 37,489
DEBT TO CAPITALIZATION
41.6 %
43.2 %
46.5 %
45.5 %
39.0 %
OPERATING RATIOS
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
HBR
89.6 %
93.0 %
88.4 %
90.2 %
SG&A expense ratio
7.0 %
7.1 %
7.3 %
7.5 %
Adjusted SG&A expense ratio
6.9 %
7.1 %
7.2 %
7.5 %
HBR BY PRODUCT
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Medicaid
93.9 %
94.9 %
93.5 %
94.2 %
Commercial
79.2 %
90.6 %
77.2 %
82.8 %
Medicare (5)
89.5 %
90.9 %
87.3 %
88.6 %
(5) Medicare includes Medicare Advantage, Medicare PDP and Medicare Supplement.
MEDICAL CLAIMS LIABILITY
The changes in medical claims liability are summarized as follows (in millions):
Balance, June 30, 2025
$ 20,117
Less: Reinsurance recoverables
60
Balance, June 30, 2025, net
20,057
Incurred related to:
Current period
161,849
Prior periods
(1,737)
Total incurred
160,112
Paid related to:
Current period
142,602
Prior periods
16,854
Total paid
159,456
Plus: Premium deficiency reserve
(389)
Plus: Divestitures
(109)
Balance, June 30, 2026, net
20,215
Plus: Reinsurance recoverables
47
Balance, June 30, 2026
$ 20,262
Centene's claims reserving process utilizes a consistent actuarial methodology to estimate Centene's ultimate liability. Any reduction in the "Incurred related to: Prior periods" amount may be offset as Centene actuarially determines the "Incurred related to: Current period." Additionally, approximately $22 million was recorded as a reduction to premium revenues resulting from development within "Incurred related to: Prior periods" due to minimum HBR and other return of premium programs.
The amount of the "Incurred related to: Prior periods" above represents favorable development and includes the effects of reserving under moderately adverse conditions, new markets where we use a conservative approach in setting reserves during the initial periods of operations, receipts from other third-party payors related to coordination of benefits and lower medical utilization and cost trends for dates of service June 30, 2025, and prior.
U.S. health care insurance provider Centene Corporation (NYSE:CNC) reported better-than-expected second-quarter earnings and a 2026 outlook.
The company reported second-quarter 2026 adjusted earnings of $2.51, beating the consensus of $1.08 per share.
Centene’s sales reached $53.579 billion, exceeding the consensus estimate of $47.617 billion.
Premium and service revenues increased 4% to $44.4 billion, primarily driven by premium yield and membership growth in the PDP business, rate increases in Marketplace and in the Medicaid business.
Medical Cost Improvements Lift ProfitabilityHealth benefits ratio (HBR) of 89.6% for the second quarter of 2026 represents a decrease from 93.0%.
The consolidated HBR benefited from a lower Marketplace HBR resulting from improved pricing and risk transfer reflecting the acuity of the Marketplace membership. The HBR also decreased due to rate and revenue increases and continued tangible progress in managing medical costs in the Medicaid business.
Membership Declines As Medicaid Redeterminations ContinueTotal membership across Centene’s portfolio declined to 25.885 million from 28.004 million a year ago.
"Our second quarter results and improved full-year outlook represent meaningful milestones on our path to restoring profitability and increasing shareholder value," said Sarah London, CEO of Centene.
The company in its earnings call said, "We ended the quarter with just over 12 million members (Medicaid), a slightly larger step down in membership than anticipated."
Centene Raises 2026 Earnings And Revenue GuidanceCentene expects 2026 adjusted earnings to be more than $4.80 per share compared to consensus of $3.52 and prior guidance of more than $3.40.
The company raised its 2026 sales guidance from $187.5 billion-$191.50 billion to $193.50 billion-$197.50 billion compared to the consensus of $191.02 billion.
"We are now expecting lower year-end membership than our previous outlook, with the increased enrollment and eligibility activity as we move through the back half of the year," London commented during the earnings conference call.
"Overall, we are pleased with the momentum building in our Medicare segment thus far in 2026 and look forward to leveraging that strength as we prepare for 2027," London said.
CNC Price Action: Centene shares were down 0.10% at $64.01 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
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Key Takeaways Centene beat Q2 earnings and sales estimates as premium and service revenues increased.CNC raised its 2026 revenue and adjusted EPS outlook after stronger quarterly performance.Centene's results benefited from premium growth despite lower membership and higher medical costs. Centene Corporation (CNC - Free Report) 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.
CNC’s Zacks RankCNC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation (THC - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.
Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.
UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.
For the quarter ended June 2026, Centene (CNC - Free Report) reported revenue of $53.58 billion, up 9.9% over the same period last year. EPS came in at $2.51, compared to -$0.16 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $47.53 billion, representing a surprise of +12.73%. The company delivered an EPS surprise of +182.02%, with the consensus EPS estimate being $0.89.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Centene performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Membership by line of business - Total: 25.89 million versus the three-analyst average estimate of 25.87 million.Membership by line of business - Medicaid: 12.11 million compared to the 12.23 million average estimate based on three analysts.Membership Medicaid - Traditional Medicaid: 10.75 million versus the three-analyst average estimate of 10.75 million.Membership by line of business - Medicare: 980 thousand compared to the 1 million average estimate based on three analysts.Revenues- Service: $793 million versus $722.97 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.Revenues- Premium: $43.58 billion versus the three-analyst average estimate of $42.49 billion. The reported number represents a year-over-year change of +4.4%.Revenues- Premium and service revenues: $44.38 billion versus $43.22 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.5% change.Revenues- Premium tax: $9.2 billion versus the three-analyst average estimate of $4.37 billion. The reported number represents a year-over-year change of +46.7%.Revenues- Premium and service revenues- Commercial: $9.36 billion compared to the $8.94 billion average estimate based on two analysts. The reported number represents a change of -7.1% year over year.Revenues- Premium and service revenues- Medicare: $11.06 billion versus $10.83 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17% change.Revenues- Premium and service revenues- Other: $1.2 billion versus $855.12 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.3% change.Revenues- Premium and service revenues- Medicaid: $22.77 billion versus the two-analyst average estimate of $23.22 billion. The reported number represents a year-over-year change of +4.8%.View all Key Company Metrics for Centene here>>>
Shares of Centene have returned -0.7% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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.
, /PRNewswire/ -- Centene Corporation (NYSE: CNC) today announced that Kenneth A. Burdick has retired from the Company's Board of Directors, effective July 28, 2026, and that Paul J. Diaz has been appointed to the Board, effective July 28, 2026.
Mr. Burdick joined Centene's Board of Directors in January 2022 and has provided valuable insight and guidance leveraging his decades-long leadership in healthcare. Prior to joining the Board, he served as Executive Vice President of Products and Markets at Centene and before that was the Chief Executive Officer of WellCare Health Plans.
Mr. Diaz is a Managing Partner at Cressey & Company, a private investment firm focused on investing and cultivating high-quality healthcare firms. He previously served as President and Chief Executive Officer of Myriad Genetics, Inc., a leading genetic testing and precision medicine company. Before that, he served as President and Chief Executive Officer of Kindred Healthcare, a Fortune 500 healthcare services company. Mr. Diaz also brings extensive public company board experience, having served on the boards of several healthcare organizations, including DaVita and PharMerica.
"After careful consideration, I have decided the time is right to step down from the Centene Board to focus on personal priorities and other opportunities," said Mr. Burdick. "It has been a privilege to serve Centene and support its mission of transforming the health of the communities it serves, one person at a time. I have great confidence in the Company's leadership, strategy and future, and I leave knowing it is well positioned for its next chapter of growth and impact."
"Ken has been a valued member of our Board. His deep industry expertise, strategic perspective, and commitment to improving healthcare have made a meaningful impact on Centene. On behalf of the Board, we thank him for his service and wish him all the best in retirement," said Frederick H. Eppinger, Chair of Centene's Board of Directors. "We are also pleased to welcome Paul Diaz to the Board. His extensive healthcare leadership experience, public company governance expertise and record of guiding organizations through growth and transformation will bring valuable perspective as Centene continues to advance its strategy and serve its members."
"I am honored to join Centene's Board of Directors and support a company with such a strong mission and commitment to improving the health of the communities it serves," said Mr. Diaz. "I look forward to drawing on my experience across the healthcare industry to help advance innovation, strengthen access to high-quality care and support Centene's continued impact for its members and stakeholders."
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/.
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.
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"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 lifted its guidance for the year after revenue and profit growth in the second quarter were driven by strength in its core government-sponsored and individual healthcare lines.
Centene headquarters in the St. Louis suburb of Clayton, Mo.
Centene
Health insurer Centene’s net income eclipsed $1 billion in the second quarter as the company is getting a better handle on rising costs of people in its commercial and government-subsidized health plans.
Centene, which is one of the nation’s largest providers of Obamacare and is also a large provider of Medicaid health benefits for poor Americans, said its earnings swung to a net income of $1.09 billion, or $2.19 a share compared to a loss of $253 million, or 50 cents a share in the second quarter of last year.
Like other health insurers, Centene has been battling the rising medical expenses of its health plan members. But Tuesday’s earnings report indicated high healthcare costs that have been a drag in past earnings may be stabilizing somewhat as the company’s health benefits ratio, which is the percentage of premium spent on medical costs was down to 89.6% for the second quarter compared to 93% in the year-ago period.
With the company’s earnings improving and the company getting a better handle on its “cost structure,” executives increased its earnings guidance for the rest of 2026.
"Our second quarter results and improved full-year outlook represent meaningful milestones on our path to restoring profitability and increasing shareholder value," said Centene chief executive officer Sarah M. London. "We are excited by the positive momentum we have built and remain focused on our goal of delivering industry-leading health outcomes with an industry-leading cost structure."
In particular, Centene reported a commercial health benefits ratio of 79.2%. The industry would prefer such ratios to be below 90% and into the mid 80s, where the industry was less than two years ago.
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“The consolidated HBR (health benefits ratio) benefited from a lower marketplace HBR resulting from improved pricing and risk transfer reflecting the acuity of the Marketplace membership,” the company said in its earnings report. “The HBR also decreased due to rate and revenue increases and continued tangible progress in managing medical costs in the Medicaid business. The HBR benefited by the favorable resolution of programmatic elements for the 2025 benefit year in Medicare and was also driven by an increase to the premium deficiency reserve (PDR) in 2025 versus no PDR in 2026 for our Medicare Advantage business as a result of our progression towards profitability.”
Centene is also benefitting from providing health benefits to a smaller pool of patients. The company’s total enrollment tumbled to nearly 25.9 million from more than 28 million in the year-ago period largely due to a big drop in enrollment in “marketplace” plans it sells under the Ambetter brand.
Such marketplace enrollment dropped to 3.5 million at the end of the second quarter compared to 5.8 million in the second quarter of last year. Centene is one of the largest sellers of such plans under the Affordable Care Act also known as Obamacare.
The big dip in Centene’s enrollment is what Democrats in Congress and health insurance industry analysts said would happen after Republicans in Congress and the Donald Trump White House wouldn’t agree to extend enhanced tax credits for buyers of Obamacare.
A KFF analysis last fall said middle income Americans “as well as those with low incomes” will see “major out-of-pocket premium increases" if tax credits aren’t extended. And they are with customers reporting a doubling and even tripling of premiums for this year. The subsidies, or tax credits, made health insurance premiums more affordable for individuals and were enhanced by the Biden administration and the Democratic-controlled Congress, which passed the Inflation Reduction Act of 2022, allowing more Americans to buy coverage.
Still, Centene said premium and service revenues rose 4% to $44.4 billion from $42.5 billion in year-ago period. “The increase was primarily driven by premium yield and membership growth in the PDP business, rate increases in Marketplace and in the Medicaid business to address medical trend, Marketplace risk adjustment revenue transfer for the 2025 and 2026 benefit years, and state directed payments. The increases were partially offset by lower Marketplace and Medicaid membership.
In its upcoming report, Centene (CNC - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.89 per share, reflecting an increase of 656.3% compared to the same period last year. Revenues are forecasted to be $47.53 billion, representing a year-over-year decrease of 2.5%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Centene metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Revenues- Service' at $722.97 million. The estimate indicates a year-over-year change of -0.6%.
Based on the collective assessment of analysts, 'Revenues- Premium' should arrive at $42.49 billion. The estimate points to a change of +1.8% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- Premium and service revenues' reaching $43.22 billion. The estimate points to a change of +1.8% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Premium tax' of $4.37 billion. The estimate points to a change of -30.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Membership by line of business - Total' should come in at 25.87 million. Compared to the current estimate, the company reported 28.00 million in the same quarter of the previous year.
Analysts predict that the 'Membership by line of business - Medicaid' will reach 12.23 million. Compared to the current estimate, the company reported 12.82 million in the same quarter of the previous year.
The consensus estimate for 'Membership Medicaid - Traditional Medicaid' stands at 10.75 million. Compared to the present estimate, the company reported 11.23 million in the same quarter last year.
Analysts expect 'Membership by line of business - Medicare' to come in at 1.00 million. The estimate compares to the year-ago value of 1.03 million.
Analysts forecast 'Membership by line of business - Medicare PDP' to reach 8.79 million. Compared to the current estimate, the company reported 7.85 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Membership Medicaid - High Acuity Medicaid' will likely reach 1.47 million. Compared to the present estimate, the company reported 1.59 million in the same quarter last year.
It is projected by analysts that the 'Total Medical Health (Benefits) loss Ratios -Total Ratio (HBR)' will reach 91.5%. The estimate is in contrast to the year-ago figure of 93.0%.
The consensus among analysts is that 'Membership - Commercial' will reach 3.85 million. Compared to the current estimate, the company reported 6.31 million in the same quarter of the previous year.
View all Key Company Metrics for Centene here>>>
Centene shares have witnessed a change of +4.6% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), CNC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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.
Key Takeaways CNC's Meridian won a four-year Illinois Medicaid contract renewal through 2030 under HealthChoice Illinois.CNC's renewal preserves a major membership base, supporting premium revenue visibility and growth stability.Centene's Medicaid revenues rose 6% year over year to $23.6 billion in first-quarter 2026. Centene Corporation’s (CNC - Free Report) subsidiary, Meridian Health Plan of Illinois, has secured a four-year renewal of its contract under the state's HealthChoice Illinois Medicaid program. The contract runs from Jan. 1, 2027, through 2030. Meridian is one of the six managed care organizations selected to provide services under the HealthChoice Illinois Medicaid program. The agreement ensures continued access to integrated primary, maternal and behavioral healthcare services for Medicaid members across Illinois.
Building on nearly 20 years of serving Illinois communities, Meridian continues to cover more than 596,000 Medicaid members. The renewal follows strong operational performance, with Meridian earning the state's highest 5-star rating on the latest HealthChoice Illinois Report Card for Access to Care, Living with Illness, and Women's and Children's Health. The agreement reinforces Centene's competitive position in the Illinois Medicaid market.
Medicaid remains Centene's largest business, with Medicaid revenues increasing 6% year over year to $23.6 billion in the first quarter of 2026. Given its heavy reliance on government-sponsored healthcare programs, the renewed Illinois contract supports premium revenue visibility and lowers the risk of future enrollment losses.
The announcement is not a game changer. It is unlikely to materially boost near-term earnings, but it preserves a significant source of premium revenues and enhances long-term earnings visibility. The renewal provides added confidence that Centene can maintain a stable Medicaid membership base and generate more predictable revenues from one of its core businesses.
How Are Competitors Faring?Some of CNC's major competitors in the managed care space are Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) .
Humana also secured a statewide contract under Illinois' HealthChoice Illinois Medicaid program, reinforcing its presence in the state's Medicaid managed care market. The contract expands HUM's government-sponsored healthcare business and supports long-term membership growth. Even so, Medicaid is not as significant an earnings driver for HUM as it is for Centene.
Molina Healthcare relies heavily on state Medicaid contracts, which are a key driver of membership and premium revenues. MOH depends on retaining and expanding these contracts to sustain growth and earnings visibility. Continued success in state Medicaid procurements strengthens MOH's competitive position and supports long-term revenue stability.
Centene’s Price Performance, Valuation & EstimatesShares of CNC have rallied 64.3% in the year-to-date period compared with the industry’s growth of 28.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 17.09, below the industry average of 18.5. 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’s level.
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.
, /PRNewswire/ -- Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, shared today that it will release its 2026 second quarter financial results at approximately 6:00 a.m. ET on Tuesday, July 28, 2026, and host a conference call at 8:30 a.m. ET to review the results.
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 (toll free) in the U.S. and Canada; +1-412-902-6506 (toll) from abroad, including the following Elite Entry Number: 4306002 to expedite caller registration; or via a live, audio webcast on the Company's website at www.centene.com, under the Investors section.
A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months or until 11:59 p.m. ET on Tuesday, July 27, 2027, at the aforementioned URL. In addition, a digital audio playback will be available until 9 a.m. ET on Tuesday, August 4, 2026, by dialing 1-855-669-9658 (toll free) in North America, or +1-412-317-0088 (toll) from abroad, and entering access code 6500508.
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 brands and 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.
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/.
Centene Corporation's CNC margin recovery story appears to be shifting from strategy to execution. The company has rolled out several initiatives to better manage medical costs, modernize and standardize processes, and strengthen payment integrity.
, /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.
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 offers a defensive shelter as the AI infrastructure market faces skepticism and volatility. ACA insurance exchanges suffered adverse selection as healthy individuals exited, leaving a sicker, costlier pool. Regulatory shifts and flawed industry algorithms led to unexpected losses for insurers unable to adjust patient mix.
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.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 25:
Cboe Global Markets, Inc. (CBOE - Free Report) : This derivatives and securities exchange network carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.3% over the last 60 days.
Cboe has a PEG ratio of 1.15 compared with 1.60 for the industry. The company possesses a Growth Score of A.
Centene Corporation (CNC - Free Report) : This managed care company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.3% over the last 60 days.
Centene has a PEG ratio of 0.49 compared with 1.06 for the industry. The company possesses a Growth Score of A.
Credo Technology Group Holding Ltd (CRDO - Free Report) : This high-speed connectivity solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 20.5% over the last 60 days.
Credo Technology has a PEG ratio of 1.17 compared with 1.26 for the industry. The company possesses a Growth Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Growth score and how it is calculated here.
