Centene Q1 Adjusted EPS of $3.37 Tops Forecast, Raises Annual Outlook
Centene posted Q1 adjusted diluted EPS of $3.37, topping forecasts, and boosted its full-year 2026 adjusted EPS outlook to over $3.40 from more than $3.00. The quarter delivered $44.7 billion in premium and service revenues, consolidated HBR of 87.3%, $4.4 billion in cash flow, 43.2% debt ratio.
1. Strong Q1 Earnings
Centene’s Q1 2026 adjusted diluted EPS reached $3.37, surpassing consensus, on premium and service revenues of $44.7 billion. Consolidated health benefits ratio improved to 87.3%, Medicaid HBR rose to 93.1% with 12.4 million members, Medicare HBR held at 84.9%, and Marketplace membership reached 3.58 million.
2. Raised Full-Year Guidance
The company raised its full-year 2026 adjusted EPS outlook to above $3.40 from over $3.00, reflecting strong quarter performance and margin improvements. Management expects a step-down in Q2 earnings, breakeven in Q3 and a seasonal loss in Q4 driven by medical cost seasonality and membership mix shifts.
3. Strong Cash Flow and Improved Leverage
Operating cash flow totaled $4.4 billion in Q1, bolstering liquidity, while the debt-to-capital ratio fell to 43.2% from 46.5% at 2025 year-end. Medical claims liabilities stood at $20.6 billion, or 48 days of claims payable, underscoring disciplined capital management.