Centene (CNC) Q3 2026 Earnings
GAAP EPS of $(0.14) includes pre-tax severance costs of $276 million from enterprise optimization, $35 million in enterprise optimization vendor costs, $15 million additional loss on prior divestiture, partially offset by $18 million net gain on real estate transactions and $1 million gain on debt extinguishment. Amortization of acquired intangible assets was $161 million.
How Did CNC Stock React to Q3 2026 Earnings?
Did CNC Beat Earnings? Q3 2026 Results
Yes. Centene reported Q3 2026 earnings of $0.58 a share on Oct 26, 2026, beating the $0.10 consensus estimate by 496.7%. Revenue was $50.6B against a $46.9B estimate.
Centene delivered a blowout third quarter, posting adjusted diluted EPS of $0.58 against a Wall Street consensus of just $0.10, a beat of nearly 497% that extended the managed care giant's streak of topping estimates to four consecutive quarters. Revenue of $50.65 billion cleared the $46.95 billion consensus by 7.87% and rose 1.9% year-over-year, as the company's surging PDP membership, now at 8.9 million versus 8.0 million a year ago, helped offset Medicaid and Commercial enrollment declines. The consolidated health benefits ratio held steady at 92.7%, with improved Marketplace pricing and favorable risk transfer balancing the absence of a premium deficiency reserve release that had aided the year-ago period. GAAP results carried a diluted loss of $0.14 per share, weighed by $276 million in enterprise optimization severance costs and $161 million in acquired intangible amortization. Buoyed by the quarter's performance and an improved cost structure, Centene raised its full-year adjusted EPS guidance floor by $0.40 to greater than $5.20, while tightening its HBR outlook to 90.4% to 91.1% and projecting full-year revenue of $196.50 billion to $200.50 billion.
- Premium yield and membership growth in PDP business drove revenue increases
- Rate increases in Marketplace and Medicaid to address medical trend
- Marketplace risk adjustment revenue transfer for the 2026 benefit year
- State directed payments contributed to revenue growth
- Improved Marketplace pricing and risk transfer reflected in lower Marketplace HBR
- Strong fundamental performance in both Medicare Advantage and PDP businesses
- Adjusted SG&A expense ratio improved to 6.5% from 7.0% driven by cost management and revenue mix shift
- Growth in PDP business operates at lower SG&A expense ratio
“Solid underlying fundamentals within our core businesses have powered a faster recovery to our earnings trajectory than previously anticipated.”
Centene CEO, on the earnings call
What Is Centene's Outlook?
Centene raised its 2026 full-year adjusted diluted EPS guidance floor by $0.40 to greater than $5.20, and GAAP diluted EPS guidance floor to greater than $3.46. Full-year HBR guidance was narrowed and improved to 90.4% to 91.1% (midpoint improved by 15 basis points to 90.75%). Total revenue guidance is $196.5 billion to $200.5 billion. Premium and service revenue guidance is $173.0 billion to $177.0 billion. SG&A expense ratio guidance is 7.2% (low) to 7.8% (high). Adjusted SG&A expense ratio guidance is 6.9% to 7.5%. Interest expense guidance was decreased to $600 million to $620 million. Effective tax rate guidance is 26.5% to 27.5%. Diluted shares outstanding expected at approximately 497.0 million (low) to 500.0 million (high).
CNC YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $50.6B | $49.7B | +1.9% |
| Operating Income | −$307.0M | −$157.0M | +95.6% |
| Net Income | −$71.0M | −$35.7M | +98.9% |
CNC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.