Market Flux Event
Centene Beats Q3 Estimates and Raises Full-Year Profit Forecast to Above $5.20 Per Share
Read this in the Market Flux appCentene Corporation reported third-quarter 2026 adjusted earnings per share of $0.58, sharply ahead of analyst expectations of roughly $0.10 and up 16% year over year. Revenue came in at $50.65 billion, well above the consensus estimate of approximately $47 billion, driven in part by a 20% year-over-year gain in Medicare segment net revenue to $11.3 billion and a 4% rise in Medicaid revenue to $24.0 billion. Commercial segment revenue fell 21% year over year to $8.7 billion.
Off the stronger quarter, Centene raised its full-year 2026 adjusted EPS guidance to above $5.20, up from a prior outlook of more than $4.80, and above the analyst estimate of $4.88. The company also lifted its full-year revenue range to $196.5 billion to $200.5 billion, compared with a previous range of $193.5 billion to $197.5 billion. The full-year HBR guidance midpoint improved by 15 basis points to 90.75%, within a range of 90.4% to 91.1%.
The health benefits ratio for Q3 held flat year over year at 92.7%, slightly above the 92.4% estimate. Cash flow from operations was negative $3.7 billion in the quarter. On the balance sheet, Centene reduced debt by $1.1 billion since June 30, including the full redemption of its 2027 Senior Notes in October. Management attributed the stronger-than-expected recovery to solid underlying fundamentals across core businesses.
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- WallstengineCENTENE $CNC Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $50.6B (Est. $47.12B) 🟢 🔹 Adj. EPS: $0.58 (Est. $0.10) 🟢; +16% YoY 🔹 HBR: 92.7%; flat YoY FY26 Guide: 🔹 Adj. EPS: >$5.20 (Est. $4.88) 🟢 🔹 Revenue: $196.5B-$200.5B (Est. $196.4B) 🟢 🔹 GAAP EPS: >$3.46 🔹 HBR: 90.4%-91.1% 🔹 Interest Expense: $600M-$620M Segment Net Revenue: 🔹 Medicaid: $24.0B; +4% YoY 🔹 Commercial: $8.7B; -21% YoY 🔹 Medicare: $11.3B; +20% YoY 🔹 Other: $1.1B; -18% YoY Other Q3 Metrics: 🔹 SG&A Ratio: 7.2%; +20 bps YoY 🔹 Adj. SG&A Ratio: 6.5%; -50 bps YoY 🔹 Cash Flow From Operations: -$3.7B Key Updates: 🔹 Debt reduced by $1.1B since June 30, 2026, including full redemption of 2027 Senior Notes in October. Comments: 🔸 “Solid underlying fundamentals within our core businesses have powered a faster recovery to our earnings trajectory than previously anticipated.” 🔸 “We remain focused on a strong finish to 2026 and building on this progress in 2027.”
- LiveSquawk$CNC | Centene Q3 Earnings: - Adj EPS: 58c (est 7c) - Rev: $50.65B (est $46.96B) - Health Benefits Ratio: 92.7% (est 92.4%) - Sees FY Revenue: $196.5B To $200.5B (prev $193.5B To $197.5B)
- FirstSquawkCentene Q3 Earnings: - Adj EPS: 58c (est 7c) - Rev: $50.65B (est $46.96B) - Health Benefits Ratio: 92.7% (est 92.4%) - Sees FY Revenue: $196.5B To $200.5B (prev $193.5B To $197.5B)
- PiQMarketsCentene lifts annual profit forecast, reports upbeat third-quarter results Centene Corp. raised its full-year profit forecast on Tuesday, projecting adjusted earnings per share to exceed $5.20, up from a previous outlook of more than $4.80. The health insurer reported third-quarter adjusted earnings per share of $0.58, surpassing analyst expectations of $0.0958. The company's medical loss ratio remained unchanged at 92.7%.