Centene (NYSE:CNC) Updates FY 2026 Earnings Guidance

Centene (NYSE:CNC) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 4.800- for the period, compared to the consensus earnings per share estimate of 3.490. The company issued revenue guidance of $193.5 billion-$197.5 billion, compared to the consensus revenue estimate of $190.5 billion.

Centene Stock Performance

Shares of CNC stock opened at $63.94 on Tuesday. The stock has a fifty day moving average of $63.57 and a 200 day moving average of $49.85. The firm has a market capitalization of $31.57 billion, a price-to-earnings ratio of -4.87, a PEG ratio of 0.50 and a beta of 1.07. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.76. Centene has a 52 week low of $25.08 and a 52 week high of $69.36.

Centene (NYSE:CNC) last released its quarterly earnings results on Monday, July 27th. The company reported $2.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $1.43. The company had revenue of $53.58 billion during the quarter, compared to the consensus estimate of $47.64 billion. Centene had a negative net margin of 3.25% and a positive return on equity of 5.57%. Centene’s revenue was up 9.9% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.16) earnings per share. As a group, research analysts expect that Centene will post 3.44 earnings per share for the current year.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Zacks Research cut Centene from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Wells Fargo & Company set a $69.00 target price on shares of Centene and gave the company an “equal weight” rating in a report on Monday, July 13th. Cantor Fitzgerald increased their price target on shares of Centene from $60.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. TD Cowen reissued a “hold” rating and set a $65.00 price objective (up from $47.00) on shares of Centene in a research note on Tuesday, July 14th. Finally, Raymond James Financial set a $75.00 target price on shares of Centene in a research note on Tuesday, July 7th. Seven analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $64.61.

Key Stories Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates. Centene reported adjusted diluted EPS of $2.51, compared with the consensus estimate of $1.08, while revenue reached $53.58 billion versus expectations of $47.64 billion. GAAP diluted EPS was $2.19, compared with a loss of $0.16 a year earlier. Centene Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its full-year guidance. Centene now expects 2026 adjusted EPS of at least $4.80 and GAAP diluted EPS above $3.11. Revenue guidance was increased to $193.5 billion-$197.5 billion, above the roughly $190.5 billion analyst consensus. Centene Raises Annual Profit Forecast on Better Cost Control
• Positive Sentiment: Lower healthcare costs improved profitability. The health benefits ratio fell to 89.6% from 93.0% a year earlier, with particularly strong performance in Commercial and Medicare. Premium and service revenue increased 4% to $44.4 billion, and operating cash flow was $3.6 billion. Centene Reports Second Quarter 2026 Results
• Neutral Sentiment: Board transition adds a governance change. Director Kenneth A. Burdick retired from Centene’s board effective July 28, with the company announcing additional board changes. The move was not presented as affecting the upgraded financial outlook. Centene Announces Board of Directors Changes

Hedge Funds Weigh In On Centene

A number of hedge funds have recently modified their holdings of the company. AQR Capital Management LLC lifted its stake in Centene by 117.0% in the 4th quarter. AQR Capital Management LLC now owns 31,798,738 shares of the company’s stock worth $1,308,518,000 after purchasing an additional 17,143,904 shares in the last quarter. Deerfield Management Company L.P. raised its position in shares of Centene by 184.0% during the 3rd quarter. Deerfield Management Company L.P. now owns 9,046,000 shares of the company’s stock valued at $322,761,000 after buying an additional 5,860,630 shares in the last quarter. Morgan Stanley increased its stake in Centene by 7.2% during the fourth quarter. Morgan Stanley now owns 9,002,570 shares of the company’s stock worth $370,456,000 after acquiring an additional 603,585 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Centene by 52.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,171,568 shares of the company’s stock valued at $295,111,000 after purchasing an additional 2,472,341 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in shares of Centene by 8.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 6,614,013 shares of the company’s stock valued at $272,167,000 after purchasing an additional 530,638 shares during the last quarter. 93.63% of the stock is currently owned by institutional investors.

About Centene

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.