Centene Q3 revenue tops estimates on Medicare growth

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:

Key Details

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

Reuters Recommended Reads

• 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.)