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

Centene (NYSE:CNC) announced its quarterly earnings data on Friday. The company reported ($1.19) earnings per share for the quarter, beating the consensus estimate of ($1.22) by $0.03, FiscalAI reports. The business had revenue of $49.73 billion during the quarter, compared to analyst estimates of $48.41 billion. Centene had a positive return on equity of 7.82% and a negative net margin of 2.85%.Centene’s revenue was up 21.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.80 earnings per share. 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 Stock Down 3.7%

Shares of NYSE CNC opened at $38.46 on Friday. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. The business has a 50-day moving average of $42.03 and a 200-day moving average of $35.89. The firm has a market capitalization of $18.90 billion, a price-to-earnings ratio of -3.55, a PEG ratio of 0.92 and a beta of 0.48. Centene has a 12 month low of $25.08 and a 12 month high of $66.03.

Institutional Trading of Centene

Hedge funds have recently made changes to their positions in the stock. BOKF NA bought a new position in Centene in the third quarter valued at $69,000. MUFG Securities EMEA plc purchased a new position in shares of Centene in the 2nd quarter worth about $79,000. Larson Financial Group LLC increased its position in shares of Centene by 65.5% during the 3rd quarter. Larson Financial Group LLC now owns 2,796 shares of the company’s stock valued at $100,000 after purchasing an additional 1,107 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Centene by 29.8% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,897 shares of the company’s stock valued at $103,000 after buying an additional 435 shares in the last quarter. Finally, Brown Brothers Harriman & Co. lifted its position in Centene by 123.2% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 3,238 shares of the company’s stock worth $116,000 after buying an additional 1,787 shares during the last quarter. 93.63% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CNC. Cantor Fitzgerald lifted their target price on shares of Centene from $38.00 to $41.00 and gave the stock a “neutral” rating in a research note on Thursday, October 30th. Morgan Stanley boosted their target price on shares of Centene from $28.00 to $38.00 and gave the company an “equal weight” rating in a report on Tuesday, October 14th. Oppenheimer reaffirmed an “outperform” rating and issued a $45.00 price target on shares of Centene in a report on Thursday, October 30th. The Goldman Sachs Group reiterated a “sell” rating and set a $38.00 price objective (up from $33.00) on shares of Centene in a research note on Thursday, October 30th. Finally, Robert W. Baird lifted their target price on Centene from $28.00 to $36.00 and gave the company a “neutral” rating in a report on Thursday, December 11th. Three research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $40.81.

More Centene News

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Centene guided to adjusted EPS of $3.00 for FY‑2026, above consensus, and said profit should be above Wall Street expectations — a sign management expects cost stabilization. Centene sees 2026 profit above estimates signaling stabilizing costs (Reuters)
• Positive Sentiment: Q4 revenue beat estimates ($49.73B vs. ~$48.4B) and revenue rose ~22% YoY, driven by PDP and Marketplace growth — top‑line strength that supports future scale. Centene Q4 results and press release (MarketBeat)
• Positive Sentiment: Some analysts/upgrades are framing the pullback as a buying opportunity after the stock’s earlier drop, which could attract tactical interest if costs improve. Centene Is On The Mend After A Hefty Fall (Seeking Alpha)
• Neutral Sentiment: Company released its earnings call transcript and slide deck — useful for investors parsing management’s details on Medicaid remediation and cost actions. Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Local PR items (Health Net community events) are positive for brand/marketing but unlikely to move the stock materially. Health Net and Pro Football Hall of Fame event (PR Newswire)
• Negative Sentiment: Centene reported a Q4 GAAP/adjusted loss (about $1.19 EPS vs. a year‑ago profit), citing rising medical costs that drove a >$1B hit — a key driver of the selloff. Centene Reports $1 Billion Loss (Forbes)
• Negative Sentiment: Medicaid membership declined, and management gave a mixed revenue outlook — revenue guidance ($186.5B–$190.5B) came in below consensus, raising concerns about near‑term growth and margin recovery. Centene Takes A Hit As Medicaid Membership Shrinks (Benzinga)
• Negative Sentiment: Analysts and news outlets highlighted the mixed 2026 outlook and ongoing medical-cost pressure despite top‑line growth — the primary reason investors moved to sell. Centene Swings to Loss Despite Higher Revenue (WSJ)

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.