Centene Corp

Latest Results (28.08.2026):

Centene Corporation reported results for the second quarter of 2026. Total revenues were $53.579 billion and premium & service revenues were $44.375 billion. GAAP diluted EPS was $2.19 and adjusted diluted EPS was $2.51. The company delivered an HBR of 89.6%, SG&A of 7.0% (adjusted SG&A 6.9%), generated $3.59 billion of operating cash flow, and exited the quarter with $44.8 billion of cash, investments and restricted deposits. Management raised full‑year 2026 guidance, including GAAP diluted EPS floor > $3.11 and adjusted diluted EPS floor > $4.80, citing underlying business strength and roughly $0.50 of non‑recurring items impacting Medicare and Commercial.

Top-line and segment revenue

Centene Corporation reported total revenues of $53.579B and premium & service revenues of $44.375B for Q2 2026, up 4% vs Q2 2025. Growth was driven by Medicare (including PDP) revenue (+17% YoY), Marketplace rate increases and Medicaid rate revenue; Marketplace and Medicaid membership declined year-over-year.

Profitability and earnings

GAAP diluted EPS was $2.19 and adjusted diluted EPS was $2.51 for Q2 2026. The quarter benefited from favorable Medicare program resolutions and reduced premium deficiency reserve compared with 2025, supporting the improved EPS and margin profile.

Health benefits and expense ratios

The consolidated Health Benefits Ratio (HBR) improved to 89.6% (Q2 2025: 93.0%). By product, Commercial HBR was 79.2% (marked improvement YoY), Medicare HBR 89.5%, and Medicaid HBR 93.9%. SG&A expense ratio was 7.0% (adjusted 6.9%), down from 7.1% a year earlier.

Cash flow and balance sheet

Operating cash flow for the quarter was $3.590B. Centene held $44.846B of cash, investments and restricted deposits at quarter end, with $715M of cash available for general corporate use. Total debt after repurchases was $16.1B and days in claims payable were 47 days.

Capital activity

During Q2 2026 Centene repurchased $260M of senior notes due 2027 and 2028. The company had no borrowings on its $4.0B revolving credit facility at quarter end.

Membership trends

Total at‑risk membership was 25.885M at June 30, 2026 (down from 28.005M a year earlier). Key changes: PDP membership grew to 8.803M (from 7.846M), Medicare at‑risk membership was 980K, Marketplace membership declined to 3.495M, and total Medicaid membership was 12.111M.

Guidance update

Centene raised 2026 guidance: total revenues now $193.5–197.5B, premium & service revenues $173.0–177.0B, GAAP diluted EPS > $3.11 and adjusted diluted EPS > $4.80. Management cites underlying business strength plus approximately $0.50 of non‑recurring items in Medicare and Commercial driving the update.

Tax rate and non‑GAAP adjustments

The effective tax rate was 26.9% in Q2 2026 (adjusted effective tax rate on adjusted earnings 26.5%). Non‑GAAP adjustments included amortization of acquired intangibles (~$0.32 per share for the quarter) and enterprise optimization/severance items; full reconciliations were provided in the release.

Key risks / context noted by management

Centene reiterated forward‑looking risk factors including rate adequacy, medical cost trends, regulatory changes and execution of enterprise optimization; the company emphasized the improved profitability trajectory but cautioned on typical healthcare and regulatory uncertainties.