EarningsQ2 2026 Earnings Report

Centene (CNC) Q2 2026 Earnings Report

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Previous Report: Q1 2026

MX:CNC Q2 2026 EPS Results

Actual EPS$42.57

Consensus EPS$18.40

Beat/MissBeat by +$24.17

One Year Ago EPS-$2.71

MX:CNC Q2 2026 Revenue Results

Actual Revenue$908.64B

Expected Revenue$807.93B

Beat/MissBeat by +$100.71B

YoY Revenue Growth+9.92%

Earnings Announcement Details

QuarterQ2 2026

Date07/28/2026

TimeBefore Open

Conference CallTuesday, July 28, 2026

MX:CNC Upcoming Earnings

Centene's next earnings date is estimated for October 27, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:CNC Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 28, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed solid financial momentum and tangible operational progress: a Q2 EPS beat, raised full-year EPS guidance, margin improvements in Marketplace and PDP, better-than-expected state rate development for Medicaid, strong cash flow and balance-sheet improvements, and measurable cost-management wins (including AI-enabled initiatives). However, the company faces meaningful near-term headwinds: membership attrition (especially in Medicaid expansion), acuity shifts that could pressure medical cost ratios, regulatory/program uncertainty (OB3, STARS, eligibility verification), and a portion of Q2 upside tied to nonrecurring prior-period settlements. On balance, the positive guidance revisions, margin recoveries in key segments, cash and debt improvement, and demonstrated operating discipline outweigh the near-term risks flagged by management.

Company Guidance

Centene raised its 2026 outlook after a strong Q2: adjusted diluted EPS of $2.51 on $44.4B of premium and service revenue and now expects full‑year adjusted EPS > $4.80 (prior > $3.40), noting roughly $0.50 of Q2 EPS was nonrecurring (~$180M Marketplace, ~$160M PDP) tied to 2025 settlements. Key operating metrics: consolidated HBR 89.6% in Q2 (vs 93.0% LY); Medicaid HBR 93.9% (full‑year ~93.5% vs prior 93.7%), Medicaid membership 12.1M with full‑year membership now expected down 8–9% vs 12/31/25, and 7/1 rates lifting the composite Medicaid rate outlook from ~4.5% to ~5% (fundamental trend mid‑4s). Marketplace: ~3.5M members, Q2 HBR 79.2% (vs 90.6% LY) and full‑year pretax margin now 4.5–5% (vs prior 3%), helped by a $180M favorable 2025 risk‑adjustment development; PDP now expected to deliver >3% pretax margin (vs 2%), with PDP premium revenue ~ $25B and pharmacy spend > $60B. Expense and capital metrics: adjusted SG&A 6.9% in Q2 (vs 7.1% LY) and enterprise SG&A guidance improved by 10 bps with a ~ $480M midpoint workforce/optimization item; total revenue guidance rose ~$6B (only ~$2B of that is premium/service — $1.5B Marketplace, $0.5B Medicaid — with ~$4B premium tax pass‑through). Balance sheet/cash: $715M cash for corporate use, $260M of senior notes repurchased, debt‑to‑cap 41.6% (down from 46.5% YE), medical claims liability $20.3B (47 days), cash from operations $8.0B YTD ($3.6B Q2), and management expects to pay > $3B of Medicaid pass‑throughs in Q3; YTD adjusted EPS was $5.88, with management forecasting slightly above breakeven in Q3 and a Q4 loss as seasonality plays out while pursuing continued margin restoration into 2027.

Q2 Earnings Beat and Raised Full-Year EPS Guidance

Q2 adjusted diluted EPS of $2.51 exceeded expectations. Management raised full-year 2026 adjusted diluted EPS guidance to greater than $4.80 (from prior >$3.40), driven by strong first-half results and favorable risk adjustment developments.

Strong Revenue Base

Reported $44.4 billion in premium and service revenue in Q2, supporting scale across lines of business.

Consolidated and Segment Margin Improvement

Consolidated HBR improved to 89.6% in Q2 (from 93.0% in Q2 2025). Medicaid HBR was 93.9% in Q2 with a full-year HBR target of ~93.5% (management adjusted from prior ~93.7%).

Medicaid Rate Environment Improving

Mid-year (7/1) state rate actions improved, raising Centene's full-year 2026 composite rate forecast to roughly 5% from ~4.5% (a ~0.5 percentage-point improvement), supporting margin restoration efforts.

Medicare PDP Margin Upgrade

Medicare PDP performance exceeded initial expectations; company now expects PDP pretax margin greater than 3% for 2026 versus prior guidance of ~2% (≈1 percentage-point improvement).

Marketplace Turnaround and Favorable Reconciliation

Marketplace delivered strong Q2 results, received a favorable final 2025 CMS risk adjustment development of $180 million in the quarter, and management now expects Marketplace pretax margin of 4.5%–5.0% for 2026 (prior guidance 3%).

Cash, Cash Flow and Balance Sheet Progress

Cash available for general corporate use of $715 million; cash flow provided by operations of $8.0 billion year-to-date and $3.6 billion in Q2. Debt-to-capital ratio improved to 41.6% from 46.5% at year-end; repurchased $260 million of senior notes in Q2.

SG&A Discipline and Cost Optimization

Adjusted SG&A ratio improved to 6.9% in Q2 from 7.1% a year ago. Company expects enterprise optimization actions to drive approximately $480 million (midpoint) of SG&A cost impact in 2026.

Operational Wins on Medical Cost Management

Medicaid reported year-over-year moderation in behavioral health costs (notably ABA) and progress on payment-integrity measures (including AI-driven analytics to address up-coding and sepsis documentation), contributing to improved medical cost control.

Early Successes in New Products and AI

ICHRA membership grew to ~50,000 (≈2.5x YoY). AI use cases showed measurable ROI (example: legal invoice review agent saving ~1.5 points in legal bills monthly), and company is building foundational data/context capabilities to scale AI responsibly.

MX:CNC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 27, 2026	2026 (Q3)	1.63 / -	8.479	―
Jul 28, 2026	2026 (Q2)	18.40 / 42.57	-2.713	1668.75% (+45.28)
Apr 28, 2026	2026 (Q1)	37.78 / 57.15	49.181	16.21% (+7.97)
Feb 06, 2026	2025 (Q4)	-20.71 / -20.18	13.567	-248.75% (-33.75)
Oct 29, 2025	2025 (Q3)	-2.46 / 8.48	27.473	-69.14% (-18.99)
Jul 25, 2025	2025 (Q2)	1.90 / -2.71	41.041	-106.61% (-43.75)
Apr 25, 2025	2025 (Q1)	42.75 / 49.18	38.327	28.32% (+10.85)
Feb 04, 2025	2024 (Q4)	8.38 / 13.57	7.632	77.78% (+5.94)
Oct 25, 2024	2024 (Q3)	22.98 / 27.47	33.918	-19.00% (-6.44)
Jul 26, 2024	2024 (Q2)	35.90 / 41.04	35.614	15.24% (+5.43)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed