Centene (NYSE:CNC) announced its financial results for the first quarter of 2026 on Tuesday, April 28, significantly outperforming internal and market expectations.
The St. Louis-based healthcare leader posted GAAP diluted earnings per share (EPS) of $3.11 and adjusted diluted EPS of $3.37—approximately $0.50 higher than company forecasts.
Total revenues for the quarter reached $49.94 billion, with premium and service revenues contributing $44.66 billion.
The company’s Health Benefits Ratio (HBR) stood at 87.3%, reflecting balanced performance across its segments.
While the Medicaid HBR was 93.1%, management highlighted "tangible progress" in managing medical costs.
The Medicare segment delivered a strong HBR of 84.9%, driven by outperformance in both Medicare Advantage and Prescription Drug Plans (PDP), while the Commercial HBR of 75.3% reflected higher acuity among Marketplace members.
Centene also made significant strides in capital management, reducing its total debt by $1 billion during the quarter.
Operating cash flow remained strong at $4.37 billion.
Total membership saw a slight decline to 26.27 million, a shift primarily attributed to Medicaid redeterminations and strategic adjustments in its Marketplace product mix to prioritize profitability over volume.
Buoyed by the strong start to the year, Centene raised its 2026 full-year guidance floors.
The company now expects GAAP diluted EPS to be greater than $2.37 and adjusted diluted EPS to exceed $3.40.