Centene (NYSE:CNC) Issues FY 2026 Earnings Guidance

Key Points

• Centene raised its FY 2026 outlook, targeting adjusted EPS above $4.80 versus the $3.49 consensus estimate and revenue of $193.5 billion-$197.5 billion versus $190.5 billion expected.
• The company reported a strong second quarter, with revenue of $53.58 billion and adjusted EPS of $2.51, significantly exceeding analyst estimates of $47.64 billion and $1.08, respectively.
• Operating performance improved as the health benefits ratio fell to 89.6% from 93.0% a year earlier, supported by stronger Medicare Advantage and prescription-drug plan results. Analysts nevertheless maintain a consensus “Hold” rating with a $64.61 price target.

Centene (NYSE:CNC - Get Free Report) updated its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 4.800- for the period, compared to the consensus EPS estimate of 3.490. The company issued revenue guidance of $193.5 billion-$197.5 billion, compared to the consensus revenue estimate of $190.5 billion.

Centene Price Performance

Shares of NYSE:CNC opened at $63.94 on Tuesday. The business has a fifty day simple moving average of $63.57 and a 200-day simple moving average of $49.85. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.76. Centene has a 52 week low of $25.08 and a 52 week high of $69.36. The company has a market cap of $31.57 billion, a P/E ratio of -4.87, a P/E/G ratio of 0.50 and a beta of 1.07.

Centene (NYSE:CNC - Get Free Report) last issued its quarterly earnings results on Monday, July 27th. The company reported $2.51 EPS for the quarter, topping the consensus estimate of $1.08 by $1.43. The firm had revenue of $53.58 billion during the quarter, compared to analyst estimates of $47.64 billion. Centene had a negative net margin of 3.25% and a positive return on equity of 5.57%. Equities research analysts forecast that Centene will post 3.44 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts have issued reports on CNC shares. Barclays reiterated an "overweight" rating on shares of Centene in a research note on Tuesday, June 16th. Truist Financial increased their target price on Centene from $71.00 to $78.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Robert W. Baird upped their target price on shares of Centene from $36.00 to $37.00 and gave the company a "neutral" rating in a research note on Wednesday, April 15th. Jefferies Financial Group upped their price objective on shares of Centene from $39.00 to $48.00 and gave the company a "hold" rating in a research report on Wednesday, April 29th. Finally, The Goldman Sachs Group reissued a "sell" rating and issued a $40.00 price target on shares of Centene in a report on Wednesday, April 29th. Seven analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $64.61.

Key Headlines Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Centene reported second-quarter revenue of $53.58 billion, well above the $47.64 billion analyst consensus. Adjusted diluted EPS was $2.51, compared with expectations of $1.08, while GAAP diluted EPS was $2.19. Centene Corporation Reports Second Quarter 2026 Results
• Positive Sentiment: The company raised 2026 guidance to adjusted EPS above $4.80, versus the approximately $3.49 consensus estimate, and projected revenue of $193.5 billion to $197.5 billion, ahead of the $190.5 billion consensus. GAAP EPS guidance was raised to above $3.11. Centene Raises 2026 Outlook on Profit, Revenue Growth
• Positive Sentiment: Operating trends improved meaningfully: the health benefits ratio declined to 89.6% from 93.0% a year earlier, while commercial HBR fell to 79.2%. Management also cited stronger performance in Medicare Advantage and prescription-drug plans, supporting the improved outlook. Centene Reports $53.6 Billion in Second Quarter Revenue
• Positive Sentiment: Centene generated $3.6 billion in operating cash flow during the quarter, adding support for balance-sheet flexibility and ongoing operations.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CNC. TMB Capital Partners LLC bought a new position in Centene in the 4th quarter valued at about $358,000. Corient Private Wealth LLC lifted its stake in shares of Centene by 36.1% in the 4th quarter. Corient Private Wealth LLC now owns 176,719 shares of the company's stock worth $7,272,000 after acquiring an additional 46,839 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Centene by 167.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 319,972 shares of the company's stock valued at $13,167,000 after acquiring an additional 200,427 shares in the last quarter. FAS Wealth Partners Inc. acquired a new position in shares of Centene during the fourth quarter valued at approximately $265,000. Finally, EP Wealth Advisors LLC bought a new stake in Centene during the fourth quarter worth approximately $1,005,000. Institutional investors own 93.63% of the company's stock.

Centene Company Profile

Centene Corporation NYSE: CNC is a diversified, multi-national healthcare enterprise that specializes in providing services to government-sponsored and national health programs. The company primarily acts as a managed care organization, delivering healthcare coverage and administering benefits for Medicaid, the Children's Health Insurance Program (CHIP), Medicare Advantage, and individual marketplace plans. Centene also contracts with federal and state agencies to manage specialty care programs and community-based services for vulnerable populations.

Centene's offerings extend beyond traditional insurance to include a range of specialty and support services.

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