Centene EPS Jumps to $3.37, Full-Year Outlook Raised Above $3.40
Centene posted adjusted diluted EPS of $3.37 in Q1 2026, driven by $44.7 billion in premium and service revenue and $4.4 billion in operating cash flow. The company raised its full-year adjusted EPS outlook to above $3.40 while cutting its debt-to-capital ratio to 43.2%.
1. Q1 Financial Highlights
Centene delivered adjusted diluted EPS of $3.37 in Q1 2026, surpassing estimates, on premium and service revenue of $44.7 billion and operating cash flow of $4.4 billion.
2. Enrollment and Margin Trends
Medicaid membership reached 12.4 million with Medicaid HBR improving to 93.1% from 92.6% year-over-year, while consolidated HBR stood at 87.3% and marketplace enrollment hit 3.58 million. Medicare HBR was 84.9%, offsetting cost pressures from behavioral health and high-cost drugs.
3. Outlook and Balance Sheet Strength
The company raised its full-year adjusted EPS outlook to above $3.40 from over $3.00, though it forecasts earnings step-down in Q2 and seasonal losses in Q3 and Q4. Debt-to-capital ratio declined to 43.2% from 46.5% year-end, but significant 2027-28 maturities pose refinancing risks.