Centene Q3 revenue tops estimates on Medicare growth

Centene

27/10/2026 10:08

Overview
U.S. managed care firm's Q3 revenue rose, beating analyst expectations
Adjusted EPS for Q3 beat consensus
Company raised 2026 adjusted EPS guidance and improved HBR outlook

Outlook
Centene raises 2026 GAAP diluted EPS guidance to greater than $3.46
Centene lifts 2026 adjusted diluted EPS guidance to greater than $5.20
Company lowers 2026 HBR guidance range to 90.4%-91.1%

Result Drivers
MEDICARE GROWTH - Co said Q3 revenue increase was driven by premium yield and membership growth in Medicare Prescription Drug Plan (PDP) business
MARKETPLACE PRICING - Co said improved pricing and risk transfer in Marketplace segment lowered health benefits ratio
COST MANAGEMENT - Co said decrease in adjusted SG&A expense ratio was driven by strong cost management and reduced Marketplace membership

Company press release: ID:nPn746f54a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$50.65 bln
$47.11 bln (15 Analysts)
Q3 Adjusted EPS
Beat
$0.58
$0.10 (19 Analysts)
Q3 Loss Per Share
 
$0.14
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the managed healthcare peer group is "buy"
Wall Street's median 12-month price target for Centene Corp is $71.00, about 4.4% above its October 26 closing price of $68.03
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

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Oct 26 - Hartford Insurance Q3 core EPS beats estimates; dividend raised
Oct 26 - Cincinnati Financial Q3 adj EPS beats estimates
Oct 26 - Panama's Bladex Q3 net profit rises on higher business volumes

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)