Centene Lifts 2026 Outlook as Strong 2Q Offsets Membership Decline -- Update

By Adriano Marchese

Centene lifted its guidance for the year after revenue and profit growth in the second quarter as strength in its core government-sponsored and individual healthcare lines offset a decline in membership.

The care and health insurance company on Tuesday said it now expects higher revenue in the year, driven largely by premium tax revenue, as well as its Marketplace and Medicaid businesses.

As a result, it now expects total revenues to be $6 billion higher, with a new range of $193.5 billion to $197.5 billion. Analysts expect $191.16 billion, according to FactSet.

Premium and service revenues guidance range was also increased by $2 billion to a new range of $173 billion to $177 billion.

At the same time, the company said its guidance floor was lifted to greater than $3.11 and its adjusted diluted EPS guidance floor to more than $4.80.

Shares are trading 3% higher in premarket trading at $66.00.

For the second quarter, total at-risk membership fell 7.6% year-over-year to 25.89 million as of June 30, driven by notable declines in its core business lines.

Commercial Marketplace enrollees dropped to 3.5 million from 5.9 million a year earlier, while total Medicaid membership fell 5.5% to 12.1 million. These losses were partially offset by growth in its Medicare Prescription Drug Plan segment, which grew 12% to 8.8 million members.

Centene's health benefits ratio, a key insurance metric showing the percentage of premium revenue spent on paying medical claims, topped expectations at 89.6%, down from 93% a year earlier. A lower ratio is better for profits. Analysts polled on FactSet were expecting 91%.

For the quarter, Centene posted a net income of $1.09 billion, or $2.19 a share, compared with a loss of $253 million, or 51 cents a share, in the same quarter a year ago.

On an adjusted basis, which excludes one-off costs and exceptional items, earnings came to $2.51 a share. According to FactSet, analysts were expecting $1.08 a share.

Total revenues rose to $53.58 billion from $48.74 billion. Analysts expected a slight decline to $47.64 billion.

Premium and service revenues were $44.38 billion, compared with $42.47 billion, largely due to a 5% increase in Medicaid revenue, its largest contributor, and a 17% increase in Medicare.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

July 28, 2026 07:03 ET (11:03 GMT)