Centene raises 2026 adjusted EPS outlook to more than $5.20 as recovery speeds up

Centene says its recovery is coming faster than expected, and it raised its profit outlook for the year.

The health insurer said Tuesday that it now expects 2026 adjusted diluted EPS of more than $5.20, up $0.40, and GAAP diluted EPS of more than $3.46, according to its earnings release filed with the SEC.

For the third quarter, Centene posted a GAAP diluted loss of $0.14 per share, compared with a loss of $13.50 a year earlier, when it took a $6.7 billion impairment. Adjusted diluted EPS was $0.58, up from $0.50. Total revenue was $50.6 billion.

"Solid underlying fundamentals within our core businesses have powered a faster recovery to our earnings trajectory than previously anticipated," CEO Sarah M. London said in the release.

Medical costs

The health benefits ratio, the share of premiums spent on medical care, was 92.7%, flat with a year earlier and better than the company expected, driven by its Medicare business. Centene now expects a full-year ratio of 90.4% to 91.1%, with the midpoint improved by 15 basis points to 90.75%.

Membership shifted sharply. Marketplace members fell to 3.4 million from 5.8 million a year earlier, and Medicaid membership fell to 11.9 million from 12.7 million, while Medicare prescription drug plan members rose to 8.9 million from 8.0 million.

Balance sheet

Centene said it cut debt by $1.1 billion since June 30, including fully redeeming its 2027 senior notes in October. Cash used in operations was $3.7 billion in the quarter, which the company attributed to the timing of pass-through, premium and other payments.

The company also expects 2026 total revenue of $196.5 billion to $200.5 billion.

Sources

1. Centene Corporation, Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0001071739-26-000194)

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