Q1 26 EPS
$3.37
Q1 26 Revenue
$49.94B
BEAT +5.03%
Est. $47.55B
vs S&P Since Q1 26
+21.4%
BEATING MARKET
CNC +22.6% vs S&P +1.3%
Market Reaction
Did CNC Beat Earnings? Q1 2026 Results
Centene Corp delivered a blowout first quarter for 2026, posting adjusted diluted EPS of $3.37 against a Wall Street consensus of $2.13, a beat of 57.90% that reflected broad-based outperformance across its major business segments. Revenue climbed 7.… Read more Centene Corp delivered a blowout first quarter for 2026, posting adjusted diluted EPS of $3.37 against a Wall Street consensus of $2.13, a beat of 57.90% that reflected broad-based outperformance across its major business segments. Revenue climbed 7.1% year-over-year to $49.94 billion, clearing the $47.55 billion consensus estimate by 5.03%, as premium and service revenues grew 5% to $44.66 billion. The single most material driver of the upside was a meaningful improvement in the Medicare segment health benefits ratio, which tightened to 84.9% from 86.3% a year ago, aided by stronger-than-expected results in both Medicare Advantage and PDP and the absence of a premium deficiency reserve charge that had weighed on year-ago results. Medicaid HBR also improved modestly to 93.1%, and SG&A discipline pushed that ratio down to 7.6% from 7.9%. The strong quarter prompted management to raise full-year 2026 guidance, lifting adjusted EPS to greater than $3.40 and increasing total revenue guidance to a range of $187.50 billion to $191.50 billion, even as broader industry headwinds from ACA subsidy uncertainty continue to reshape the competitive landscape.
Key Takeaways
- • Medicaid HBR improvement to 93.1% from 93.6% driven by rate increases, medical cost management, and moderate flu
- • Medicare segment HBR improvement to 84.9% from 86.3% with outperformance in both Medicare Advantage and PDP
- • SG&A expense ratio improved to 7.6% from 7.9% through cost discipline and favorable business mix
- • Premium yield and PDP membership growth driving revenue increases
- • State-directed payments and rate increases to address medical trend in Medicaid
- • No premium deficiency reserve in Q1 2026 vs. PDR charge in Q1 2025 for Medicare Advantage
- • Strong operating cash flow of $4.4 billion
CNC Forward Guidance & Outlook
Centene raised its full-year 2026 guidance. GAAP diluted EPS is now expected to be greater than $2.37 (up from prior guidance), and adjusted diluted EPS is now expected to be greater than $3.40. Premium and service revenues guidance was increased by $1.0 billion to a range of $171.0 billion to $175.0 billion, driven by Medicaid. Total revenues are expected in the range of $187.5 billion to $191.5 billion. Investment and other income expectation was raised by $50 million to $1.45 billion. Full-year HBR is guided at 90.9% to 91.7%, SG&A expense ratio at 7.0% to 7.6%, effective tax rate at 27.0% to 28.0%, and diluted shares outstanding of approximately 495.6 million to 498.6 million.
CNC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
CNC Revenue by Segment
With YoY comparisons, source: SEC Filings
“We continue to make tangible progress in our margin recovery efforts while strengthening the fundamental operations of each of our businesses.”
— Sarah M. London, Q1 2026 Earnings Press Release
CNC Earnings Trends
CNC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CNC EPS Trend
Earnings per share: estimate vs actual
CNC Revenue Trend
Quarterly revenue: estimate vs actual
CNC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $3.37 | — | $49.94B | +5.03% |
| Q4 25 BEAT FY | $-1.22 | $-1.19 | +2.46% | $49.73B | +4.42% |
| FY Full Year | $2.04 | $2.08 | +2.16% | $194.78B | +1.09% |
| Q3 25 BEAT | $-0.16 | $0.50 | +404.32% | $49.69B | +3.88% |
| Q2 25 MISS | $0.23 | $-0.16 | -170.52% | $48.74B | +10.28% |
| Q1 25 BEAT | $2.52 | $2.90 | +15.27% | $46.62B | +7.80% |