Centene Q2 revenue beats estimates, lifts 2026 outlook

Overview

• U.S. managed care provider's Q2 revenue rose 10% yr/yr, beating analyst expectations

• Adjusted diluted EPS for Q2 beat analyst expectations

• Company raised 2026 GAAP and adjusted EPS guidance, citing business strength and non-recurring items

Outlook

• Centene raises 2026 total revenue guidance to $193.5 bln-$197.5 bln

• Company lifts 2026 premium and service revenue outlook to $173.0 bln-$177.0 bln

• Centene updates 2026 adj diluted EPS guidance floor to greater than $4.80

Result Drivers

• PDP GROWTH PREMIUM YIELD - Co said revenue growth was driven by higher premium yield and membership growth in the Medicare Prescription Drug Plan business

• IMPROVED MEDICAL COST MANAGEMENT - Co said lower health benefits ratio reflected improved pricing, risk transfer, and progress in managing medical costs, especially in Medicaid

• COST MANAGEMENT BUSINESS MIX - Co attributed lower SGA expense ratio to strong cost management, leveraging expenses over higher revenues, and growth in PDP business, which operates at a lower SGA expense ratio

Company press release: ID:nPn5Jdj2Pa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy."

• Wall Street's median 12-month price target for Centene Corp is $69.00, about 7.7% above its July 27 closing price of $64.08

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)