Centene Q1 Profit $1.54B Beats Estimates, Revenue $49.9B, Raises Guidance
Centene reported Q1 GAAP profit of $1.54 billion (EPS $3.11) and adjusted EPS of $3.37 on $49.94 billion revenue, beating per-share consensus by $1.50 and revenue forecasts by $2.47 billion. It raised 2026 revenue guidance to $187.5–191.5 billion and lifted adjusted EPS outlook above $3.40, while individual Marketplace enrollment fell by 2 million year-over-year.
1. Q1 Financial Performance
Centene delivered GAAP diluted EPS of $3.11 and adjusted EPS of $3.37, generating $1.54 billion in profit on $49.94 billion in revenue. These results surpassed analyst projections by $1.50 per share and $2.47 billion in revenue, reflecting strong premium yield and membership growth in PDP.
2. Guidance and Outlook
The company increased its full-year 2026 revenue guidance to a range of $187.5–191.5 billion and lifted its adjusted EPS forecast to over $3.40, citing ongoing margin recovery and operational efficiencies. Management expressed confidence in sustaining long-term earnings power and community impact.
3. Membership Trends
Total at-risk membership declined to 26.27 million from 27.94 million a year earlier, driven by a 2 million drop in individual Marketplace enrollees following subsidy changes. Medicaid membership of 12.43 million and Medicare membership of 9.78 million largely offset the Marketplace losses.
4. Margin Recovery and Cost Controls
Centene reported a consolidated health benefits ratio of 87.3%, down from 87.5% in Q1 2025, and maintained an SG&A expense ratio of 7.6%. The company also achieved $1 billion of debt reduction in the quarter and highlighted progress in managing medical costs and strengthening segment operations.