CENTENE CORP is expected to release its Q3 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q2 2026 10-Q:
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.
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.
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.
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
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