Highlights

  • Third quarter 2026 total revenues were $50.6 billion, with a GAAP diluted loss of $(0.14) per share and adjusted EPS of $0.58.
  • The health benefits ratio was 92.7%, equal to the third quarter of 2025, and the adjusted SG&A expense ratio was 6.5%.
  • Managed care membership was 25.7 million, a decrease of 2.3 million members, or (8)%, year over year.
  • Management said it is raising full year 2026 adjusted EPS guidance to more than $5.20 per diluted share.

Centene Corporation (NYSE: CNC) shares were trading at USD 69.01 on October 27, 2026, up 1.44%, with a relative volume at time of 3.62. The managed care company filed its 10-Q for the quarter ended September 30, 2026 on October 27, redeemed its remaining Senior Notes due 2027 in October, and said it is raising its full year adjusted EPS guidance.

Centene is incorporated in Delaware and lists its principal executive offices in St. Louis, Missouri. The company provides managed care services on behalf of states and the federal government through Medicaid, Medicare and Commercial products, including Wellcare Medicare Advantage plans offered in 32 states and Ambetter Health plans offered in 29 states. Its fiscal year ends December 31. Management said on the third quarter call that the company had 53,900 employees at quarter end, compared with 61,100 at the end of the previous year.

Third Quarter Results

For the quarter ended September 30, 2026, total revenues were $50,647 million, compared with $49,690 million in the third quarter of 2025. The company stated premium and service revenues of $45.1 billion. It reported a GAAP net loss attributable to Centene of $(71) million, or $(0.14) per diluted share, compared with a net loss of $(6,631) million, or $(13.50) per diluted share, a year earlier. The 2025 figure included a goodwill impairment of $6,723 million.

Adjusted diluted EPS, a non-GAAP measure, was $0.58, compared with $0.50. The reconciliation includes severance costs of $276 million tied to enterprise optimization and contract exits.

The health benefits ratio was 92.7%. The SG&A expense ratio was 7.2%, compared with 7.0%, and the adjusted SG&A expense ratio was 6.5%. Operating cash flows used cash of $3.7 billion in the quarter, which the company attributed to the timing of pass through payments.

Balance Sheet and Debt

Cash and cash equivalents were $20,700 million at September 30, 2026, compared with $17,888 million at December 31, 2025. Total debt was $15,542 million, compared with $17,401 million. In October 2026, the debt repurchase program was increased by $2,000 million, and the company redeemed the remaining $569 million of its Senior Notes due 2027. Management said total debt was $15.0 billion as of October 27, 2026.

Membership and Disclosed Risks

Managed care membership was 25.7 million. Management said Medicaid membership was 11.9 million at the end of the third quarter. The 10-Q states that post-PHE eligibility redeterminations and regulatory policy changes reduced Medicaid membership compared with 2025, and that New York terminated its Essential Plan-5 in July 2026. On the call, management said Florida CMS membership rolled off on October 1 and that Marketplace membership is forecast to end 2026 at approximately 3.2 million, from 3.4 million at the end of the third quarter.

The company also disclosed that California will transition the Medi-Cal Unsatisfactory Immigration Status population from managed care to fee-for-service on January 1, 2027, and that it is exiting the Health Net commercial group business in California over the next 18 to 24 months. Management said it expects Medicare Advantage membership to be down year over year in 2027.

Outlook

Management said it is raising full year 2026 adjusted EPS guidance to more than $5.20 per diluted share. It said Medicare Advantage is forecast to reach breakeven in 2026, one year earlier than its multiyear plan. It expects a Marketplace pretax margin of 5.0% and a Medicaid composite rate of approximately 5% for the full year.

For 2027, management set a 2026 adjusted EPS jump off point of $4.70 and said it expects to grow adjusted EPS relative to that figure. These statements are forward-looking and subject to change.