Centene (NYSE:CNC) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Centene (NYSE:CNC) issued its quarterly earnings data on Friday. The company reported ($1.19) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.22) by $0.03, FiscalAI reports. Centene had a positive return on equity of 7.82% and a negative net margin of 2.85%.The business had revenue of $49.73 billion for the quarter, compared to analyst estimates of $48.41 billion. During the same quarter in the previous year, the company posted $0.80 EPS. Centene’s quarterly revenue was up 21.9% compared to the same quarter last year. Centene updated its FY 2026 guidance to 3.000-3.000 EPS.

Here are the key takeaways from Centene’s conference call:

• Centene expects full-year 2026 adjusted EPS greater than $3 (over 40% YoY growth), driven by Medicaid stability, a meaningful Marketplace margin recovery, and continued progress toward Medicare Advantage break-even.
• Medicaid showed sequential improvement with a Q4 health benefits ratio of 93.0%, and management is pursuing rate advocacy, network optimization, clinical programs (e.g., ABA task force) and stronger fraud detection to sustain margin recovery in 2026.
• Marketplace faces material headwinds: paid Ambetter membership is expected to fall to ~3.5M by end of Q1 (from 5.5M in December), metal-tier mix shifted heavily to bronze, and accruals for No Surprises Act disputes raised Q4 HPR ~100 bps—Centene is pursuing litigation and regulatory reform.
• Medicare remains a strength with PDP revenue and membership growth and improving Medicare Advantage fundamentals; management targets MA break-even by 2027 and reports MA is close to break-even on a margin basis in 2026 (no PDR booked).

Centene Trading Down 3.7%

CNC traded down $1.46 during trading on Friday, hitting $38.46. The company’s stock had a trading volume of 12,722,551 shares, compared to its average volume of 6,949,123. The firm has a market capitalization of $18.90 billion, a P/E ratio of -3.55, a PEG ratio of 0.95 and a beta of 0.48. Centene has a twelve month low of $25.08 and a twelve month high of $66.03. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. The stock’s fifty day moving average price is $42.04 and its 200-day moving average price is $35.81.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Snowden Capital Advisors LLC raised its holdings in shares of Centene by 8.0% in the second quarter. Snowden Capital Advisors LLC now owns 5,073 shares of the company’s stock valued at $275,000 after purchasing an additional 374 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Centene by 29.8% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,897 shares of the company’s stock worth $103,000 after purchasing an additional 435 shares in the last quarter. CW Advisors LLC increased its stake in Centene by 20.3% in the 2nd quarter. CW Advisors LLC now owns 4,863 shares of the company’s stock valued at $264,000 after buying an additional 820 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Centene by 3.4% in the 3rd quarter. Van ECK Associates Corp now owns 28,096 shares of the company’s stock worth $1,002,000 after buying an additional 916 shares during the last quarter. Finally, Treasurer of the State of North Carolina grew its holdings in shares of Centene by 0.4% in the second quarter. Treasurer of the State of North Carolina now owns 231,938 shares of the company’s stock valued at $12,590,000 after acquiring an additional 967 shares in the last quarter. 93.63% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Q4 results beat on key metrics: Centene posted an adjusted loss per share of ($1.19), slightly better than estimates, and revenue of $49.73B (+21.9% YoY) that topped forecasts — evidence of strong PDP and Marketplace premium growth. Read More.
• Positive Sentiment: Company set FY‑2026 adjusted EPS guidance of $3.00 (above consensus ~$2.95) and said it expects profit above Wall Street estimates, signaling management sees stabilizing medical costs. Read More.
• Positive Sentiment: Some analysts/markets are turning constructive after the pullback; Seeking Alpha highlighted an upgrade/positive view arguing the company is “on the mend.” Read More.
• Neutral Sentiment: Full earnings materials and the call transcript are available for deeper diligence (management commentary on membership mix, out‑of‑period items, and HBR trends). Review the transcript/slide deck for details. Read More.
• Neutral Sentiment: Corporate/branding activity: Health Net (a Centene plan) ran Super Bowl‑week community outreach events — reputational/market presence item, unlikely to move fundamentals near term. Read More.
• Negative Sentiment: Cost and membership headwinds: Centene reported a >$1B GAAP loss as medical costs rose, Medicaid membership declined, and management gave a mixed sales/outlook picture — revenue guidance came in below consensus, raising concerns about near‑term margins and enrollment stabilization. These issues are the main reasons the stock traded lower on the print. Read More.
• Negative Sentiment: Major press coverage emphasized the swing to loss despite higher revenue and ongoing cost pressure, underscoring that profit recovery is still a work in progress. Read More.

Analyst Ratings Changes

Several brokerages have issued reports on CNC. Robert W. Baird upped their price target on shares of Centene from $28.00 to $36.00 and gave the company a “neutral” rating in a research report on Thursday, December 11th. Wells Fargo & Company set a $43.00 price objective on Centene and gave the company an “equal weight” rating in a report on Wednesday, January 7th. UBS Group set a $42.00 target price on Centene and gave the stock a “neutral” rating in a research report on Thursday, October 30th. Oppenheimer reissued an “outperform” rating and issued a $45.00 price target on shares of Centene in a research note on Thursday, October 30th. Finally, Cantor Fitzgerald lifted their price objective on Centene from $38.00 to $41.00 and gave the stock a “neutral” rating in a research note on Thursday, October 30th. Three equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $40.81.

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.