Centene (NYSE:CNC) Issues Earnings Results

06 Feb 2026, 18:54 by Danessa Lincoln · The Markets Daily

Centene (NYSE:CNC – Get Free Report) released its quarterly earnings results on Friday. The company reported ($1.19) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.25) by $0.06, FiscalAI reports. The business had revenue of $49.73 billion during the quarter, compared to analysts’ expectations of $48.41 billion. Centene had a positive return on equity of 7.82% and a negative net margin of 2.85%.The company’s revenue was up 21.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.80 EPS. Centene updated its FY 2026 guidance to 3.000-3.000 EPS.

Here are the key takeaways from Centene’s conference call:

Centene expects full-year 2026 adjusted EPS greater than $3 (over 40% YoY growth), driven by Medicaid stability, a meaningful Marketplace margin recovery, and continued progress toward Medicare Advantage break-even.
Medicaid showed sequential improvement with a Q4 health benefits ratio of 93.0%, and management is pursuing rate advocacy, network optimization, clinical programs (e.g., ABA task force) and stronger fraud detection to sustain margin recovery in 2026.
Marketplace faces material headwinds: paid Ambetter membership is expected to fall to ~3.5M by end of Q1 (from 5.5M in December), metal-tier mix shifted heavily to bronze, and accruals for No Surprises Act disputes raised Q4 HPR ~100 bps—Centene is pursuing litigation and regulatory reform.
Medicare remains a strength with PDP revenue and membership growth and improving Medicare Advantage fundamentals; management targets MA break-even by 2027 and reports MA is close to break-even on a margin basis in 2026 (no PDR booked).

Centene Trading Down 5.1%

CNC stock traded down $2.03 during midday trading on Friday, reaching $37.89. 8,752,259 shares of the company’s stock traded hands, compared to its average volume of 6,819,788. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. Centene has a fifty-two week low of $25.08 and a fifty-two week high of $66.03. The business has a 50-day moving average price of $42.04 and a two-hundred day moving average price of $35.81. The company has a market capitalization of $18.62 billion, a P/E ratio of -3.51, a PEG ratio of 0.95 and a beta of 0.48.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Snowden Capital Advisors LLC lifted its position in Centene by 8.0% during the 2nd quarter. Snowden Capital Advisors LLC now owns 5,073 shares of the company’s stock worth $275,000 after acquiring an additional 374 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in Centene by 29.8% in the second quarter. Geneos Wealth Management Inc. now owns 1,897 shares of the company’s stock valued at $103,000 after acquiring an additional 435 shares during the period. CW Advisors LLC increased its holdings in shares of Centene by 20.3% in the 2nd quarter. CW Advisors LLC now owns 4,863 shares of the company’s stock worth $264,000 after acquiring an additional 820 shares during the period. Van ECK Associates Corp boosted its position in Centene by 3.4% during the 3rd quarter. Van ECK Associates Corp now owns 28,096 shares of the company’s stock worth $1,002,000 after acquiring an additional 916 shares during the period. Finally, Treasurer of the State of North Carolina lifted its stake in shares of Centene by 0.4% in the 2nd quarter. Treasurer of the State of North Carolina now owns 231,938 shares of the company’s stock worth $12,590,000 after acquiring an additional 967 shares during the period. Institutional investors and hedge funds own 93.63% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. The Goldman Sachs Group reiterated a “sell” rating and set a $38.00 price target (up from $33.00) on shares of Centene in a research note on Thursday, October 30th. Oppenheimer reaffirmed an “outperform” rating and set a $45.00 price objective on shares of Centene in a report on Thursday, October 30th. Morgan Stanley increased their target price on shares of Centene from $28.00 to $38.00 and gave the stock an “equal weight” rating in a research note on Tuesday, October 14th. Wells Fargo & Company set a $43.00 price objective on shares of Centene and gave the stock an “equal weight” rating in a research report on Wednesday, January 7th. Finally, Truist Financial boosted their price objective on shares of Centene from $45.00 to $47.00 and gave the stock a “buy” rating in a report on Monday, January 5th. Three analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $40.81.

Read Our Latest Report on Centene

Centene News Roundup

Here are the key news stories impacting Centene this week:

Positive Sentiment: Q4 topline and adjusted EPS beat estimates: Centene reported ($1.19) GAAP EPS (better than the -$1.25 consensus) and revenue of $49.73B (above estimates), showing 21.9% revenue growth year‑over‑year—helpful for near‑term sentiment. MarketBeat: Earnings & Call
Positive Sentiment: FY‑2026 EPS guidance topped Street expectations: Centene issued adjusted EPS guidance of $3.00 (vs. ~2.95 consensus), and management highlighted stabilizing medical costs—analytics and forecasts interpret this as a sign of operational progress. Reuters: Profit Forecast
Neutral Sentiment: Medicaid metrics showing gradual improvement: Centene reported consolidated HBR of 94.3% and Medicaid HBR of 93.0% with a sequential improvement—positive trend but still a key area to monitor for margin recovery. PR News: 2025 Results & Guidance
Neutral Sentiment: Non‑financial PR and analyst commentary: Health Net (a Centene company) ran community events and several analyst/third‑party bull/preview pieces circulated—these are visibility/brand positives but unlikely to move fundamentals immediately. PR News: Health Net Events
Negative Sentiment: Large GAAP loss and continued cost pressure: Centene posted a >$1B fourth‑quarter loss and swung to a full‑year GAAP loss, with coverage in Forbes/WSJ underscoring ongoing healthcare cost challenges in government plans. Those headlines weigh on sentiment despite adjusted metrics. Forbes: Q4 Loss
Negative Sentiment: Revenue guidance below Street expectations: Management gave revenue guidance (~$186.5B–$190.5B) that sits under consensus (~$192B), which investors interpret as a cautious signal on growth and helps explain downward stock pressure. PR News: Guidance

Centene Company Profile

(Get Free Report)

Centene Corporation (NYSE: CNC) is a diversified, multi-national healthcare enterprise that specializes in providing services to government-sponsored and national health programs. The company primarily acts as a managed care organization, delivering healthcare coverage and administering benefits for Medicaid, the Children’s Health Insurance Program (CHIP), Medicare Advantage, and individual marketplace plans. Centene also contracts with federal and state agencies to manage specialty care programs and community-based services for vulnerable populations.