Centene Corporation (NYSE:CNC) reported better-than-expected second-quarter results on Tuesday, delivering earnings and revenue that comfortably exceeded Wall Street forecasts as improved performance across its Medicare and Commercial businesses supported a stronger full-year outlook.
Shares of the health insurer rose 3.04% in pre-market trading following the earnings announcement.
Adjusted earnings per share came in at $2.51, well above the analyst consensus estimate of $1.07. Quarterly revenue increased 10% year over year to $53.58 billion, topping expectations of $47.63 billion.
Premium and service revenue reached $44.38 billion during the quarter, compared with $42.47 billion in the same period a year earlier.
Company Lifts Full-Year Earnings and Revenue Guidance
Following the stronger quarterly performance, Centene increased its outlook for fiscal 2026.
The company now expects adjusted earnings per share of more than $4.80 for the full year, significantly ahead of the analyst consensus estimate of $3.52.
Centene also raised its revenue forecast to between $193.5 billion and $197.5 billion. The midpoint of $195.5 billion is approximately $5.17 billion above the current consensus estimate of $190.33 billion.
Management said the improved guidance reflects the strength of the underlying business and includes approximately $0.50 per share of non-recurring items generated within its Medicare and Commercial operations.
Lower Medical Costs Improve Health Benefits Ratio
Centene reported a health benefits ratio of 89.6% for the quarter, improving from 93.0% in the second quarter of 2025.
The company attributed the improvement to stronger pricing within its Marketplace business and continued progress in managing medical costs across its Medicaid operations.
The Commercial segment posted a health benefits ratio of 79.2%, representing a significant year-over-year improvement, while the Medicare business recorded a ratio of 89.5%.
“Our second quarter results and improved full-year outlook represent meaningful milestones on our path to restoring profitability and increasing shareholder value,” said Chief Executive Officer Sarah M. London.
Strong Cash Flow Supports Balance Sheet
Operating cash flow totalled $3.59 billion during the second quarter, providing continued financial flexibility.
Centene ended the period with $715 million in cash available for general corporate purposes and repurchased $260 million of senior notes as part of its capital management strategy.
Centene stock price
