Centene Raises Full-Year Earnings Outlook After Strong Q2 Performance
Centene Corporation (NYSE:CNC) reported second-quarter adjusted earnings per share of $2.51 and premium and service revenue of $44.4 billion, both exceeding expectations. The company raised its full-year 2026 adjusted EPS outlook to above $4.80 from previously more than $3.40. This improvement was driven by favorable risk adjustment developments in the Marketplace segment, stronger Medicare performance, and progress on Medicaid rates. Centene also increased its full-year pre-tax margin outlook for the Marketplace business to 4.5%-5% from 3%, supported by a second-quarter health benefits ratio of 79.2%. The company expects an 8-9% decline in Medicaid enrollment in 2026, though improved rates have lifted the estimated rate impact to about 5%. Medicare Part D margin guidance was raised above 3%, and Medicare Advantage is moving closer to break-even. Centene reduced its debt-to-capital ratio to 41.6% through senior-note repurchases and anticipates $480 million in SG&A savings for the year from cost initiatives.
Tickers: $CNC
Topics: financial_performance healthcare insurance