EarningsQ3 2026 Earnings Report
MX:CNC Q3 2026 EPS Results
Actual EPS$10.95
Consensus EPS$1.81
Beat/MissBeat by +$9.14
One Year Ago EPS$9.44
MX:CNC Q3 2026 Revenue Results
Actual Revenue$956.33B
Expected Revenue$889.67B
Beat/MissBeat by +$66.65B
YoY Revenue Growth+1.93%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeBefore Open
Conference CallTuesday, October 27, 2026
MX:CNC Upcoming Earnings
Centene's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CNC Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Centene delivered a better-than-expected third quarter, raised 2026 adjusted EPS guidance from more than $4.80 to more than $5.20, reported strong Medicare and Marketplace performance, reached an earlier-than-expected Medicare Advantage breakeven target, reduced debt, and described multiple operating and cost-management improvements. The primary challenges were Medicaid membership declines and work-requirement-related acuity risks, expected Medicare Advantage membership contraction, Marketplace membership attrition and program-integrity costs, the planned commercial-group exit, and a likely PDP margin reset in 2027. Highlights significantly outweighed the lowlights.Company Guidance
Third-Quarter Earnings Beat and Raised 2026 Outlook
Centene reported third-quarter adjusted diluted EPS of $0.58, ahead of previous expectations, on $45.1 billion in premium and service revenue. Consolidated HBR was 92.7%, better than expected, and full-year 2026 adjusted diluted EPS guidance was raised to more than $5.20 from more than $4.80. The improved outlook was attributed to continued Medicare strength, Marketplace pretax margin moving to the top of the prior 4.5% to 5.0% range, and lower interest expense with a midpoint of $610 million.
Medicaid HBR Remained on Track
Medicaid HBR was 93.6% in the third quarter, improving sequentially by 30 basis points from Q2 and tracking toward the full-year forecast of approximately 93.5%. Medicaid performance reflected positive rate actions and execution of member and provider engagement, network management, and fraud, waste, and abuse interventions.
Medicaid Trend Stabilization and Rate Progress
Behavioral health showed another quarter of year-over-year trend stabilization, with a similar pattern beginning to emerge in home health. Centene said state rate updates remained consistent with expectations and maintained its full-year 2026 composite rate view at approximately 5%. The company reported constructive state discussions for January 1 rates, including explicit consideration of work-requirement-related acuity shifts and the inclusion of 2025 data in rate-setting baselines.
Medicaid Preparedness and Coverage-Continuity Initiatives
Centene is preparing for work requirements through member education, work and community-resource referrals, provider education, and readiness support. The company said states are generally taking a more methodical approach to eligibility verification, and its local teams are working to maximize coverage continuity. Centene also reported that Nebraska members who provided eligibility data were largely re-enrolled, with states considering tools such as self-attestation for medically frail members.
Strong Medicare Segment Performance
The Medicare segment exceeded expectations, with a third-quarter HBR of 93.8%, driven by both Medicare Advantage and standalone Part D. Medicare trend was lower than planned as Centene continued executing trend-management initiatives.
Medicare Advantage Turnaround Reached Breakeven Early
Centene said Medicare Advantage is now on track to reach breakeven financial results in 2026, one year ahead of expectations. The company expects Medicare Advantage to move from breakeven in 2026 to better than breakeven in 2027 and plans to focus its 2027 footprint on populations and geographies where it can provide differentiated products.
Part D Outperformance and Growth Positioning
Standalone Part D performed strongly, supported by prudent bid posture, scale, and cost-structure optimization. Full-year 2026 PDP pretax margin guidance was raised to the mid- to high 3s from the prior outlook of more than 3%. Centene expects PDP enrollment to tilt toward growth during the current enrollment period and said it expects growth in both enhanced and basic products in 2027.
Marketplace Margin Recovery
Marketplace performance exceeded expectations as trend in the higher-acuity silver tier continued to moderate. Centene raised its full-year Marketplace pretax margin outlook to the top of the prior 4.5% to 5.0% range, or 5.0%. Management described this as a 600-basis-point improvement from the 1.0% pretax margin reported for Marketplace in 2025.
Marketplace Reserves and Risk-Adjustment Position
Centene said reserves entering the third quarter sufficiently accounted for the revenue and risk-adjustment effects of unauthorized enrollment activity. Updated risk-adjustment data from Wakely, including claims through July 2026 and unauthorized membership data, was in line with expectations, and the company continues to expect to be in a meaningful receivable position at year-end.
Ambetter Product and Pricing Expansion
For 2027 open enrollment, Ambetter is expanding its product suite with more tailored benefit plans and whole-health programs. Centene said its pricing strategy is positioned for the 2027 shopping season and remains focused on additional Marketplace margin expansion. The company expects bronze products to remain an important part of the portfolio without a major shift in overall metal mix.
Cost-Structure Improvement and AI Investments
Adjusted SG&A was 6.5% in the third quarter versus 7.0% a year earlier, reflecting continued discipline and execution. Centene maintained its full-year 2026 SG&A ratio midpoint at 7.2% and expects a lower consolidated SG&A rate to be a 2027 tailwind. The company is simplifying processes, increasing automation, and implementing ROI-driven AI to help employees service members more efficiently.
Debt Reduction and Lower Interest Expense
Centene repurchased an additional $1.1 billion of senior notes, including the full redemption of notes due in 2027 during October. Total debt was $15.0 billion, down from $18.5 billion at the end of 2024, and the debt-to-capital ratio was 41.1%. Management said the debt reduction addresses near-term maturities, reduces interest expense, and creates capacity for future growth opportunities.
Positive Operating Cash Flow Year to Date
Cash flow provided by operations was $4.3 billion year to date, driven by net earnings and the timing of claims and other payments. Centene also maintained its expectation of approximately $1.5 billion of investment and other income for 2026.
Healthy-Food Benefits Linked to Lower Claims Spend
Centene reported that, over the last two quarters, Medicare D-SNP members with higher healthy-food benefits had approximately $200 per member per month in lower claim spend and better clinical outcomes, including lower blood pressure, HbA1c, and BMI. The company also described a Nebraska Total Care program that combines healthy-food benefits with nutrition counseling, education, and blood-sugar screenings.
Early Confidence in 2027 Earnings Growth
Management expects adjusted EPS to grow in 2027 relative to both the approximately $4.70 adjusted EPS jump-off point and the revised 2026 guidance of more than $5.20. Identified 2027 tailwinds include Medicaid rate and acuity progress, improved Marketplace pretax margin, Medicare Advantage moving above breakeven, PDP membership growth, higher premium yield from the direct subsidy increase, and improved SG&A.
Limited Expected Impact from 1115 Waiver Changes
Management said it does not expect a significant impact from CMS shifting 1115 waivers toward budget neutrality, although states may need to be thoughtful and there could be some curbing of innovation in how the waiver vehicle is used.
MX:CNC Earnings History
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