Centene raises 2026 profit forecast as Q3 revenue tops estimates

Centene Corporation (CNC) said on Oct. 27 that third-quarter 2026 total revenue was $50.65 billion, topping the $47.59 billion consensus estimate compiled by Finnhub, and that it raised its full-year profit forecast. The healthcare enterprise said in a release that adjusted diluted earnings per share were 58 cents for the quarter, while its GAAP diluted result was a loss of 14 cents per share.

Here's how the company did:

• Total revenue: $50.65 billion vs. $49.69 billion a year earlier, and $47.59 billion expected, according to Finnhub
• Adjusted diluted EPS: 58 cents vs. 50 cents a year earlier
• GAAP diluted loss per share: 14 cents vs. $13.50 a year earlier

Premium and service revenues rose 0.5% to $45.1 billion from $44.9 billion a year earlier. The company said the increase was driven by premium yield and membership growth in its PDP business, along with rate increases in Marketplace and Medicaid.

Total at-risk membership fell to 25.7 million from 28.0 million a year earlier. Marketplace membership dropped to 3.4 million from 5.8 million over the same period.

CEO Sarah M. London said in the release: “Solid underlying fundamentals within our core businesses have powered a faster recovery to our earnings trajectory than previously anticipated.”

Revenue has risen in each of the last three quarters, from $49.69 billion in the third quarter of 2025 to $53.58 billion in the second quarter of 2026, according to its SEC filings.

2026 guidance

The company raised its 2026 GAAP diluted EPS floor to greater than $3.46 from greater than $3.11 in its July 28 release. Its adjusted diluted EPS floor rose to greater than $5.20 from greater than $4.80 in the same release, an increase the company put at 40 cents.

Total revenue guidance is now $196.5 billion to $200.5 billion, up from the $193.5 billion to $197.5 billion range it gave in July. Premium and service revenue guidance is $173.0 billion to $177.0 billion.

The company lowered its health benefits ratio guidance range to 90.4% to 91.1%, and said the full-year HBR midpoint improved by 15 basis points to 90.75%. Its interest expense guidance range is $600 million to $620 million.

Costs and charges

Severance costs tied to enterprise optimization and contract exits were $276 million in the quarter, and third-party vendor costs for the same program were $35 million. The SG&A expense ratio was 7.2%, compared with 7.0% a year earlier, while the adjusted SG&A expense ratio was 6.5%, compared with 7.0%.

The company had 53,900 employees at the end of the quarter, down from 60,900 a year earlier.

Debt and cash

Cash flow used in operations was $3.7 billion in the quarter. The company attributed this to the timing of pass-through, premium and other payments, as expected.

Total debt was $15.5 billion at quarter end, after the company repurchased $558 million of its senior notes due 2027 and 2028 during the third quarter. In October, it increased its debt repurchase program by $2.0 billion and bought the remaining $569 million of its Senior Notes due 2027. It said $1.9 billion was available under the program as of Oct. 27.

The company said in the filing that it has reduced debt by $1.1 billion since June 30, 2026. It will discuss the guidance further on its conference call, held at 8:30 a.m. ET on Oct. 27.