Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual and commercial group. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, and centralized services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.
Country
Sector
Themes
Also in
Price· split & dividend adjusted
No price history for this asset yet.
News & notes movingCNC
CNC
Aon Forecasts 9.5% Rise in 2027 Employer Health Costs
Aon plc expects U.S. employer health-care costs to rise 9.5% in 2027, pushing average plan costs above $19,000 per employee. The forecast, based on its Health Value Initiative database covering more than 1,100 employers, 7.9 million employees and $135 billion of 2026 health-care spending, points to higher medical service use, chronic illness, expensive claims and prescription drugs, especially specialty medicines and GLP-1 therapies, as key drivers. Employers' average cost rose 8.8% in 2026 to $14,432 per employee, while employee payroll contributions increased 6.4% to $3,130, and Aon says employers now fund about 82% of total plan costs. The projected increase would mark a fourth straight year of employer health-cost growth close to double digits, with total plan costs up 8.3% in 2026 to $17,562 per employee. Aon's Health Solutions generated $818 million of second-quarter 2026 revenues and 5% organic growth, while Willis Towers Watson's Health business posted 8% organic growth in the same period, and UnitedHealth Group and Centene Corporation are managing medical costs through pricing and benefit design.
Health insurance providers reported strong second-quarter results, with the 12 tracked stocks beating revenue consensus estimates by 2.8% as a group. Humana posted revenues of $40.87 billion, up 26.2% year over year, exceeding expectations by 0.6%. CVS Health delivered the best quarter with revenues of $106.1 billion, up 7.3% and beating estimates by 6.7%, while Progyny was the weakest with revenues of $350.5 million, up 5.3% but missing next-quarter EBITDA guidance significantly. Oscar Health achieved the fastest revenue growth at 70.4% to $4.88 billion, and Centene topped estimates by 13.1% with revenues of $53.58 billion. Despite the beats, the group's stocks are down 5.8% on average since reporting.
Centene announced that Chief Financial Officer Drew Asher plans to step down from his role in December 2026 and retire from the company at the end of 2027. Chris Neczypor will join Centene in September and assume the executive vice president and CFO role effective January 1, 2027. Asher will remain with the company through his retirement to support strategic initiatives and ensure a smooth transition. Neczypor previously served as executive vice president and chief financial officer of Lincoln Financial.
Centene Surged on Earnings Beat and Improved Outlook
Centene Corporation shares surged after the managed care organization reported adjusted EPS that beat consensus by 48% and raised its full-year guidance. The Hotchkis & Wiley Mid-Cap Value Fund highlighted Centene as a leading performance contributor in its second-quarter 2026 investor letter, noting that the Medicaid margin recovery and ACA membership reset were tracking ahead of plan. Centene, which focuses on the Medicaid market with approximately 28 million at-risk enrollees, closed at $63.76 per share on August 3, 2026, with a market capitalization of $31.49 billion and a 52-week gain of 146.27%.
Eight of nine healthcare companies beat EPS estimates this week
Eight out of nine healthcare companies that reported quarterly results this week beat earnings-per-share expectations, while all nine exceeded revenue consensus. Centene posted second-quarter revenue of $53.6 billion, topping estimates by $6.1 billion, and raised its full-year revenue guidance to $193.5 billion to $197.5 billion. Boston Scientific reported revenue of $5.4 billion, beating by $70 million, but lowered its full-year net sales growth outlook to 5.5% to 6.5% year-over-year. DexCom beat on both top and bottom lines and raised the midpoint of its 2026 revenue guidance to a range of $5.18 billion to $5.25 billion. Universal Health Services was the only company to miss EPS estimates.
Regeneron and DexCom lead healthcare sector in July as Moderna and managed-care stocks retreat
The healthcare sector gained about 2.45% in July, outperforming the broader S&P 500 which slipped around 0.12%. Regeneron Pharmaceuticals was the biggest winner, climbing 22.08%, followed by DexCom which gained 21.19% after its Q2 earnings beat and raised full-year guidance, and Baxter International which advanced 20.61%. Moderna was the biggest detractor, dropping 24.39%, while Intuitive Surgical fell 12.19% and managed-care insurers Humana, Elevance Health, and Centene also finished among the weakest performers. Earnings-driven gains in pharmaceuticals and medtech contrasted with weakness in managed-care insurers and vaccine makers.
Centene Shares Fall 5% as Membership Drop Overshadows Strong Earnings
Shares of Centene fell 5.1% in morning trading after a year-over-year decline of over 2.1 million members overshadowed second-quarter results that beat analyst estimates and included a raised full-year profit forecast. The health insurer reported adjusted earnings per share of $2.51 and revenue of $53.58 billion, both significantly above expectations, and lifted its full-year adjusted profit guidance to $4.80 per share at the midpoint. However, total membership dropped to approximately 25.9 million, worrying investors about future growth. The stock later pared some losses to trade down 3% at $62.13.
Centene Raises 2026 Adjusted EPS Guidance to Over $4.80 on Marketplace and Medicare Strength
Centene raised its full-year 2026 adjusted earnings per share guidance to greater than $4.80, up from a prior target of greater than $3.40, driven by margin expansion in its Marketplace and Medicare prescription drug plan segments. The company reported second-quarter adjusted EPS of $2.51, which included approximately $0.50 from settlements of 2025 items not expected to recur in 2027. Marketplace pretax margin guidance was lifted to 4.5% to 5% from 3%, reflecting $180 million in favorable 2025 risk adjustment reconciliation and lower medical costs, while PDP pretax margin guidance rose to greater than 3% from 2% on favorable specialty drug trends. Medicaid membership ended the quarter at 12.1 million, with full-year attrition now seen at 8% to 9% as states tighten enrollment criteria ahead of regulatory changes, though the composite rate forecast improved to roughly 5% from 4.5%. The company also highlighted progress on enterprise optimization, including AI-driven legal invoice savings of 1.5 points of monthly billings, and a debt-to-capitalization ratio reduced to 41.6% from 46.5% at year-end following $260 million in senior note repurchases.
Trump administration ends Medicare Part D subsidy, raising 2027 premiums for most enrollees
A Trump administration decision to end a Medicare Part D subsidy program means that three out of four enrollees will see higher plan premiums in 2027. About 45% of enrollees will see an $11 to $20 monthly increase, while another 30% will pay $10 or under more per month, according to a report in The Wall Street Journal. An administration official told the newspaper that the subsidy provided an incentive for health insurers to boost rates as the federal government would foot the additional amount. The subsidy provided approximately $3.6 billion in support in 2026, according to the Government Accountability Office. The top Medicare Part D insurers include Centene, Humana, and UnitedHealth Group.
Centene Corporation will host a conference call at 8:30 AM ET on July 28, 2026, to discuss its second-quarter 2026 earnings results. The live webcast will be available at the company's investor relations website, and the call can be accessed by dialing 1-877-883-0383 in the US or +1-412-902-6506 internationally with Elite Entry Number 4306002. A replay will be available by calling 1-855-669-9658 in the US or +1-412-317-0088 internationally using access code 6500508.
US defers over $1 billion in Medicaid payments to California and Minnesota
The U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services have deferred more than $1 billion in federal Medicaid payments to California and Minnesota as part of a Trump administration effort to combat fraud, waste, and abuse. CMS is deferring approximately $867.5 million in federal Medicaid payments to California and $199 million to Minnesota after financial reviews identified claims requiring additional scrutiny before federal matching funds are released. The payments are not being permanently withheld, and both states will have the opportunity to submit documentation demonstrating the claims comply with federal Medicaid requirements. Minnesota Governor Tim Walz called the move political retribution, arguing the administration was punishing children, seniors, and people with disabilities rather than fraudsters, while California Governor Gavin Newsom called it a recycled political stunt and said the state would collaborate with CMS in good faith efforts to combat fraud.
Seeking Alpha Quant rates Centene top healthcare stock, Doximity bottom ahead of Q2 earnings
Seeking Alpha's quantitative framework has identified Centene Corporation as the highest-rated healthcare stock with a Strong Buy rating of 4.97, while Doximity received the lowest rating of 1.21, a Strong Sell, as the second-quarter earnings season begins. The Health Care Select Sector SPDR Fund ETF, which tracks the sector and represents roughly 12.12% of the S&P 500, has risen 4.52% year-to-date, trailing the benchmark index's 10.06% advance. In the second quarter, the broader healthcare sector posted a modest 8.78% return, while the Technology index skyrocketed 43.49%. The top five Strong Buy stocks with market caps above $2 billion also include Liquidia Corporation at 4.95, BrightSpring Health Services at 4.95, LifeStance Health Group at 4.93, and PACS Group at 4.92. The bottom five Strong Sell or Sell stocks include TransMedics Group at 1.26, CSL Limited at 1.30, Zoetis at 1.34, and EssilorLuxottica ADR at 1.39.
Elevance Health shares drop 8% after Q2 benefit expense ratio rises, dragging down peers
Elevance Health shares fell about 8% in premarket trading after the insurer reported a higher-than-expected benefit expense ratio in its second quarter of 2026, sending shares of Molina Healthcare, Centene, and Oscar Health lower. The benefit expense ratio, which measures the proportion of premiums paid out for medical care, rose 80 basis points year-over-year to 89.7%, exceeding the 90.15% projected by analysts according to LSEG data. Elevance attributed the increase mainly to rising medical cost trends in its Government businesses. Despite beating earnings estimates with adjusted earnings per share of $7.45 and raising its full-year adjusted EPS guidance to at least $27.00 from $26.75, total operating revenue grew only about 1% year-over-year to $49.8 billion, while total medical membership dropped roughly 2% to about 44.9 million amid declines in Medicaid and Medicare enrollees.
Centene Stock Surges 66% Year to Date, Outpacing Industry and Peers
Centene Corporation has surged 66% year to date, far outpacing the managed healthcare industry's 28.5% gain and the S&P 500's 10.7% advance. The rally marks a sharp reversal from last year's selloff, when rising medical costs forced the company to withdraw its financial guidance. First-quarter results showed a health benefits ratio improvement of 20 basis points to 87.3% and premium revenue growth of 5.2% to $43.9 billion, while management raised its 2026 premium and service revenue guidance to a range of $171 billion to $175 billion. The Zacks Consensus Estimate for 2026 earnings is $3.46 per share, a 66.4% increase from the prior year, and analysts project $4.41 per share in 2027. Despite the strong performance, risks remain from policy uncertainty, elevated medical costs, and intense competition, and the stock currently carries a Zacks Rank of 3, or Hold.
Centene Corporation Rallied After Better-Than-Expected First-Quarter Results
Centene Corporation shares rallied sharply after the managed care company reported better-than-expected first-quarter results, making it the top contributor to the Oakmark Select Fund in the second quarter of 2026. The fund noted that managed care industry profitability has been under pressure over the last two years due to an unprecedented spike in medical cost trend, but there are signs that the cost trend is now stabilizing or even decelerating in certain utilization categories. Oakmark expects easing medical costs combined with improving reimbursement rates and Centene's own expense initiatives to drive a meaningful earnings recovery in the coming years. Beyond this cyclical recovery, the firm believes Centene remains well positioned for growth as a leader in government-managed care. Centene's stock closed at $68.29 per share on July 13, 2026, with a market capitalization of $33.72 billion, and has gained 127.63% over the past 52 weeks.
StockStory highlights Boston Scientific as large-cap pick, flags Regeneron and Centene as sells
StockStory identifies Boston Scientific as a large-cap stock with exciting potential, citing 15.7% average organic revenue growth over two years, 24.2% annual earnings per share growth over five years, and a 9.1 percentage point free cash flow margin expansion. The firm flags Regeneron and Centene as stocks to avoid, noting Regeneron’s 6.7% annual sales growth lagging peers and a 20.4 percentage point free cash flow margin decline, while Centene faces choppy customer growth and a 15.2% annual earnings per share drop despite revenue gains. Boston Scientific trades at 13.1 times forward earnings, Regeneron at 13.9 times, and Centene at 19.3 times.
Centene Stock May Still Be A Bargain After A 114% Run
Centene stock has returned 114.2% over the past year, yet valuation checks still lean cheap. The company trades on a price-to-sales ratio of about 0.2 times, well below the healthcare industry average of around 1.5 times and a peer average near 1.7 times. Simply Wall St's fair ratio estimate for Centene is about 0.9 times, suggesting the current multiple sits well below what this tailored yardstick indicates. On Simply Wall St's checks, Centene screens as undervalued in five of six areas, so the broader set of valuation indicators leans cheap rather than fully pricing in the past year's rally. The key question for investors is whether this discount compensates for policy and funding risks tied to state program changes, or whether it reflects an earnings base that the market remains reluctant to reward with a higher multiple.
Centene added to growth indexes after 80% quarterly surge
Centene has been dropped from Russell's defensive and value defensive indexes and added to several growth benchmarks, a reclassification that may alter how index funds and style-focused investors view the stock. The move follows a 90-day share price return of 80.56% and a one-year total shareholder return of 114.22%, though the five-year total shareholder return shows a decline of 7.31%. The most followed analyst narrative pegs Centene's fair value at $61.83, suggesting the stock is 8.9% overvalued at its last close of $67.35, while its price-to-sales ratio of 0.2x sits far below the US healthcare industry average of 1.5x.
Centene's Meridian Health Plan Secures Four-Year Illinois Medicaid Renewal
Centene's subsidiary Meridian Health Plan of Illinois has secured a four-year renewal of its contract under the state's HealthChoice Illinois Medicaid program, running from January 1, 2027 through 2030. Meridian is one of six managed care organizations selected for the program and currently covers more than 596,000 Medicaid members. The renewal follows Meridian earning the state's highest 5-star rating on the latest HealthChoice Illinois Report Card. While not expected to materially boost near-term earnings, the contract preserves a significant source of premium revenues and enhances long-term earnings visibility for Centene, whose Medicaid revenues rose 6% year over year to $23.6 billion in the first quarter of 2026.
Medicare Advantage insurers to receive over $13B in bonus payments in 2026
Health insurers led by UnitedHealth, Humana, and CVS Health are expected to receive at least $13.4 billion in federal bonus payments this year under the Medicare Advantage quality bonus program, according to a report by health research organization KFF. The program rewards plans rated four stars and above, with nearly 24 million enrollees, or about 68% of total Medicare Advantage members, in such plans this year, up from 55% in 2015 when bonus payments totaled only $3 billion. UnitedHealth, the largest Medicare Advantage insurer, is set to receive $3.9 billion, or 29% of total bonus spending, while Humana will receive $1.5 billion, or 11%, after its average star rating dropped sharply. CVS Health and Elevance Health are expected to receive $2 billion and $462 million, respectively, and Centene will be eligible for $21.5 million. KFF noted that eliminating the program could yield substantially higher savings than the Congressional Budget Office's 2018 estimate of $100 billion over 10 years, given the sharp increase in Medicare Advantage enrollment.
Clover Health leads health insurance providers with 62% revenue growth in Q1
Health insurance providers reported strong first-quarter results, with revenues beating analyst consensus estimates by 1.4% on average. Clover Health stood out with revenue of $749.2 million, up 62% year over year and exceeding expectations by 4.8%, while also raising full-year EBITDA guidance. CVS Health posted the biggest beat, with revenue of $100.4 billion, up 6.2% and surpassing estimates by 6.3%. Centene reported $49.94 billion in revenue, up 7.1% and beating by 6.2%, though it lost 1.36 million customers. Molina Healthcare's revenue declined 3.1% to $10.8 billion, missing full-year guidance, and Cencora's revenue of $78.36 billion fell short of estimates by 3.9%. Since reporting, Clover Health's stock has surged 101%, while the group's shares are up 41.9% on average.
Centene Raises 2026 Adjusted EPS Guidance to More Than $3.40
Centene raised its 2026 adjusted earnings per share guidance to more than $3.40 after first-quarter adjusted EPS rose 16.2% year over year to $3.37. Premium and service revenues increased 5.1%, while Medicaid's health benefits ratio improved 50 basis points to 93.1%, driven by better reimbursement and disciplined cost management. The company served 26.3 million members as of March 31, 2026, and continues to invest in advanced analytics, AI-enabled tools, and value-based care models to support margin recovery and long-term earnings growth.
RBC Initiates Centene Coverage, Says Worst of 2025 Is Firmly in the Rearview Mirror
RBC Capital analyst Ben Hendrix initiated coverage of Centene Corporation with a Sector Perform rating and a $70 price target, stating the worst of 2025 is firmly in the rearview mirror. Hendrix noted Centene entered 2026 showing clear early signs of recovery after a brutal 2025 marked by soaring medical costs, Affordable Care Act subsidy uncertainty, and a difficult Medicaid environment that sent the stock to historic lows. He expects Medicaid margins to improve as state reimbursement rates catch up with actual medical costs, and views the ACA exchange margin outlook favorably due to pricing adjustments, even with a higher-cost membership base after enhanced subsidies expired. Hendrix also sees potential for 2026 earnings per share to exceed guidance if risk adjustment receivables remain stable.
Centene Appoints Lauren M. Tyler to Board of Directors
Centene has appointed Lauren M. Tyler to its Board of Directors. Tyler brings leadership experience from major financial institutions, including senior roles at JPMorgan Chase & Co. in investment banking, private equity, corporate audit, investor relations, and human capital strategy. Her background may influence board-level priorities such as capital allocation, risk oversight, and executive oversight. The appointment comes as Centene's stock trades around $65.73, up 57.3% year to date.
Health Insurers Post Strong Q1 as CVS Leads and Cencora Lags
Health insurance providers tracked by StockStory reported a strong first quarter, with aggregate revenues beating analyst consensus estimates by 1.4% and next-quarter revenue guidance in line. CVS Health was the standout, reporting revenues of $100.4 billion, up 6.2% year on year and exceeding expectations by 6.3%, while also beating full-year EPS guidance estimates. Cigna posted revenues of $68.52 billion, up 4.7% and beating estimates by 3%, but its stock fell 3.8% as investor expectations ran higher than published projections. Cencora was the weakest performer, with revenues of $78.36 billion missing estimates by 3.9%, sending its shares down 8.1%. Oscar Health saw revenues jump 52.6% to $4.65 billion, though that still came in 5.7% below expectations, while Centene topped estimates by 6.2% with revenues of $49.94 billion, up 7.1%, and lost 1.36 million customers to end the quarter with 26.27 million. On average, share prices across the 12-stock group have risen 31.4% since the latest earnings results.
UBS says hospitals may gain more from AI than health insurers
UBS analysts say hospitals could build a more durable competitive advantage from artificial intelligence than health insurers, even as AI becomes a core operating layer across healthcare. Analyst A.J. Rice notes that while managed-care companies like UnitedHealth Group, Elevance Health, Humana, Cigna, and Centene are deploying AI for claims processing, prior authorization, and customer service, those efficiency gains are highly replicable and likely to be competed away through pricing or benefit enhancements. In contrast, large for-profit hospital operators such as HCA Healthcare, Tenet Healthcare, and Universal Health Services are using AI for revenue cycle management, denial appeals, and staffing optimization, and may maintain a multiyear lead over slower-moving nonprofit systems. UBS highlights that Universal Health Services generated approximately $50 million in annualized additional revenue from an AI coding platform, while HCA is using AI to fight claim denials and optimize nurse staffing with a Palantir-built platform. The report concludes that AI will improve profitability unevenly, with hospitals better positioned to retain gains and expand margins over time.
Centene Offers Broad Voluntary Buyouts to Most of Its 61,000 Employees
Centene has offered voluntary buyouts to most of its roughly 61,000 employees following significant membership declines in its Affordable Care Act and Medicaid health plans. The move is part of broader cost-cutting efforts as the insurer works to align its expense structure with a smaller membership footprint. Management has previously emphasized prioritizing margin over membership in the Marketplace segment, and this workforce reduction is seen as a test of whether the company can protect its margin recovery efforts while enrollment remains under pressure. Analysts note that the biggest risk is if rate adequacy and medical cost trends move against Centene faster than it can resize its cost base.
Health Net Awards $4 Million Grant for 45-Unit Affordable Housing Project in Modesto
Health Net announced a $4 million grant to Self-Help Enterprises to support the development of Morris Village, a new 45-unit affordable housing community in Modesto, California. The investment will help close the project's remaining funding gap, with construction expected to begin in the fourth quarter of 2026 and be completed by spring 2028. The 44 affordable homes will serve residents earning below the area median income, and Self-Help Enterprises plans to explore partnerships with service providers to connect future residents to care and support services. Since 2020, Health Net has committed $93 million to housing and homelessness initiatives across California.