Centene Q2 revenue beats estimates, lifts 2026 outlook

• PDP growth and premium yield - Revenue growth was driven by higher premium yield and membership growth in the Medicare Prescription Drug Plan business.
• Improved medical cost management - The company said the lower health benefits ratio reflected improved pricing, risk transfer, and progress in managing medical costs, especially in Medicaid.
• Cost management and business mix - Centene attributed the lower SG&A expense ratio to strong cost management, leveraging expenses over higher revenues, and growth in PDP business, which operates at a lower SG&A expense ratio.

Centene said U.S. managed care provider's Q2 revenue rose 10% year over year, beating analyst expectations.

Adjusted diluted EPS for Q2 also beat analyst expectations.

The current average analyst rating on the shares is hold, with 8 strong buy or , 14 and 1 or . The average consensus recommendation for the managed healthcare peer group is .