A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CNC returned to profitability in Q2 FY2026, with revenue rising 9.9% year over year to $53.6B and net income attributable to Centene reaching $1.1B versus a $253M loss a year earlier, supported by lower medical costs relative to premium revenue, Marketplace risk-adjustment benefits, and improved cost discipline. Source: 10-Q Item 2 MD&A, pp. 21, 27-29.
Revenue
$53.58B
+9.92% YoY
EPS (Diluted)
$2.19
+529.41% YoY
Gross Margin
8.6%
+2.4 pts YoY
Operating Income
$1.2B
+361.57% YoY
Centene (CNC) reported Q2 FY2026 revenue of $53.58B, up 9.9% year over year. The company posted net income of $1.09B, with diluted EPS of $2.19. Gross margin was 8.6%. Operating income was $1.2B. CNC's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Q2 FY2026 revenue rose 9.9% to $53.6B and CNC earned $1.1B, reversing the prior-year loss as medical-cost ratios and Marketplace profitability improved. Source: 10-Q Item 2 MD&A, pp. 21, 27-29.
Last 4 quarters: 3 beats, 1 miss
GAAP diluted EPS was $2.19 in Q2 FY2026, compared with a loss of $0.51 per share in Q2 2025. The health benefits ratio improved to 89.6% from 93.0%, aided by improved Marketplace pricing and risk transfers, Medicaid rate and revenue increases, medical-cost management, and the absence of a Medicare Advantage premium-deficiency reserve in 2026.
Source: 10-Q Item 2 MD&A, pp. 21-22, 27-28
Total revenue increased 10% to $53.6B, while premium and service revenue increased 4% to $44.4B. Management attributed the increase primarily to state pass-through premium taxes, higher premium yield and membership growth in Medicare Part D PDPs, Marketplace and Medicaid rate increases, Marketplace risk-adjustment transfers, and state-directed payments; lower Marketplace and Medicaid membership partly offset these drivers.
Source: 10-Q Item 2 MD&A, pp. 21, 27-28
Commercial revenue declined 7% to $9.4B, primarily because Marketplace membership fell, but Commercial gross margin more than doubled to $1.9B from $946M. Management cited rate increases, its 2026 risk-adjustment transfer estimate, and the final 2025 risk-adjustment transfer, including a stated $481M pre-tax benefit after related offsets, as key contributors.
Source: 10-Q Item 2 MD&A, pp. 23-24, 29
Total at-risk managed care membership was 25.9M at June 30, 2026, down 2.1M, or 8%, from June 30, 2025. Marketplace membership declined to 3.5M from 5.9M, while total Medicaid membership declined to 12.1M from 12.8M, reflecting post-public-health-emergency eligibility redeterminations and Marketplace policy and subsidy changes.
Source: 10-Q Item 2 MD&A, pp. 19-20, 25-26
Operating cash flow was $3.6B in Q2 FY2026, and cash provided by operations for the six months ended June 30, 2026 was $8.0B, compared with $3.3B in the prior-year six-month period. The company also repurchased $1.3B of senior notes due 2027 and 2028 during the first six months, producing a $1M pre-tax gain on debt extinguishment.
Source: 10-Q Item 2 MD&A, pp. 21, 30
Total liabilities were $60.4B compared with stockholders' equity of $22.6B, producing a debt-to-equity ratio of 2.68x. Equity declined 17.7% year over year, so the company has less equity capital relative to its liability base than in the prior-year period.
Source: 10-Q Balance Sheet (XBRL)
Current assets were $46.7B and current liabilities were $40.8B, resulting in a current ratio of 1.15x. While current assets exceeded current liabilities, the modest cushion means changes in claims payments, receivables collection, or other working-capital requirements could pressure near-term liquidity.
Source: 10-Q Balance Sheet (XBRL)
Cost of revenue increased 13.7% year over year to $729M, compared with 9.9% revenue growth. If this relationship persists, it could pressure profitability in the service-related portion of the business, although consolidated gross profit increased in Q2 FY2026.
Source: 10-Q Income Statement (XBRL)
Net income attributable to the company was $1.1B in Q2 FY2026, compared with a $253M loss in the prior-year quarter. The improvement is substantial, but the comparison demonstrates that quarterly earnings can be sensitive to changes in costs, revenues, and other operating factors.
Source: 10-Q Income Statement (XBRL)
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Centene (CNC) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the CNC earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $53.58B | $48.74B | +9.92% |
Cost of Revenue | $729M | $641M | +13.73% |
Gross Profit | $4.62B | $3.02B | +52.98% |
Operating Income | $1.2B | -$458M | +361.57% |
Net Income | $1.09B | -$253M | +531.23% |
EPS (Basic) | $2.21 | -$0.51 | +533.33% |
EPS (Diluted) | $2.19 | -$0.51 | +529.41% |
SG&A Expense | $3.1B | $3.04B | +2.21% |
CNC reported revenue of $53.6B in Q2 FY2026, up 9.9% year over year. Management attributed growth to premium-tax pass-through payments, PDP premium and membership growth, rate increases, Marketplace risk-adjustment transfers, and state-directed payments, partly offset by lower Marketplace and Medicaid membership. Source: 10-Q Item 2 MD&A, pp. 27-28.
Net income attributable to Centene was $1.1B, compared with a $253M loss in Q2 2025, and diluted EPS rose to $2.19 from a loss of $0.51 per share. The health benefits ratio improved to 89.6% from 93.0%, while Commercial gross margin increased to $1.9B from $946M. Source: 10-Q Item 2 MD&A, pp. 21, 27-29.
Managed care membership was 25.9M at June 30, 2026, down 2.1M, or 8%, from a year earlier. Marketplace membership declined to 3.5M from 5.9M and total Medicaid membership declined to 12.1M from 12.8M, while Medicare PDP membership increased to 8.8M from 7.8M. Source: 10-Q Item 2 MD&A, pp. 25-26.
The filing reports GAAP diluted EPS of $2.19 and adjusted diluted EPS of $2.51 for Q2 FY2026. However, analyst consensus estimates were not provided in the filing materials, so a comparison with earnings estimates cannot be determined from this report. Source: 10-Q Item 2 MD&A, pp. 21-22.
CNC ended the period with $24.2B of cash and equivalents, a 1.15x current ratio, and $8.0B of year-to-date operating cash flow. However, total liabilities were $60.4B, stockholders' equity was $22.6B, and the debt-to-equity ratio was 2.68x, indicating meaningful leverage relative to equity. Source: 10-Q Balance Sheet and Cash Flow Statement (XBRL).
Centene (CNC) is next expected to report earnings on Oct 27, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
Centene Corporation (CNC) delivered solid Q1 2026 results with revenue up 7.1% YoY to $49.9B, net income rising 17.5% to $1.54B, and operating cash flow surging 189.1% to $4.37B, reflecting improved operational efficiency despite a modest compression in gross margin.
CNC (Centene Corporation) reported a dramatic swing to a net loss of $6.67B in FY2025 despite a 19.4% revenue surge to $194.8B, driven by a sharp collapse in gross and operating margins that overwhelmed top-line growth.
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