$CNC · CENTENE CORP
Centene reported Q3 2026 results with total revenues of $50.6 billion, a GAAP diluted loss per share of $(0.14), and adjusted diluted EPS of $0.58. The company raised its full-year 2026 adjusted diluted EPS guidance floor to greater than $5.20, a $0.40 increase, and improved its HBR guidance by 15 basis points to 90.4%–91.1%. Debt was reduced by $1.1 billion during the quarter.
- GAAP diluted loss per share of $(0.14) vs. $(13.50) in Q3 2025, which included a $6.7B goodwill impairment.
- Adjusted diluted EPS of $0.58, up from $0.50 in Q3 2025, beating the prior-year comparable.
- Full-year 2026 adjusted diluted EPS guidance raised by $0.40 to greater than $5.20.
- Health benefits ratio held at 92.7%, with full-year HBR guidance improved 15 bps to 90.4%–91.1%.
- Cash flow used in operations was $(3,669) million in Q3, driven by timing of pass-through and premium payments.
Extended-hours trading shows CNC at $66.64, down 2.10% from the regular close of $68.07. The GAAP loss and negative operating cash flow of $(3.7B) appear to be weighing on sentiment despite the adjusted EPS beat and guidance raise.
A $0.40 guidance raise signals faster-than-expected margin recovery, but the GAAP loss and massive cash outflow create tension that demands Q4 validation.
Centene's results reflect the ongoing post-redetermination Medicaid normalization and Marketplace repricing cycle. The 20% Medicare revenue growth contrasts with membership declines, suggesting rate-driven rather than volume-driven expansion.
HBR of 92.7% remains elevated; Medicaid redeterminations continue to pressure membership, with total Medicaid down ~811K year-over-year. Marketplace membership dropped 2.4M, or ~42%, from Q3 2025.