CENTENE CORPORATION REPORTS SECOND QUARTER 2026 RESULTS

Key Points:

• Centene Corporation reported second quarter 2026 GAAP diluted earnings per share (EPS) of $2.19 and adjusted diluted EPS of $2.51, driven by strong profitability improvements across Medicare, Medicaid, and Commercial segments.
• The company increased its 2026 GAAP diluted EPS guidance to greater than $3.11 and adjusted diluted EPS guidance to greater than $4.80, reflecting underlying business strength and approximately $0.50 per share of non-recurring items.
• Premium and service revenues rose 4% year-over-year to $44.4 billion in Q2 2026, supported by premium yield, membership growth in the PDP business, rate increases in Marketplace and Medicaid, and state-directed payments.
• Health benefits ratio (HBR) improved to 89.6% in Q2 2026 from 93.0% in the prior year period, driven by better pricing, risk transfer, and medical cost management, while the SG&A expense ratio decreased to 7.0% due to strong cost discipline.
• Centene ended the quarter with $44.8 billion in cash, investments, and restricted deposits, repurchased $260 million in senior notes, and maintained a debt level of $16.1 billion with no borrowings on its $4 billion revolving credit facility.