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CENTENE CORP 8-K Report, Financial Results (Apr 28, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 28, 2026
Period End
April 28, 2026
Security
CNC
In the record · 2016–202610-K1110-Q328-K217

CNC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 217 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jul ’18Jul ’18
  2. Leadership change8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Material agreement8-K · Mar ’25Mar ’25

01—Abstract

Summary

Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Centene Corporation (NYSE: CNC) reported first quarter 2026 results that beat its internal expectations, with GAAP diluted EPS of $3.11a and adjusted diluted EPS of $3.37, which management said was approximately $0.50 above its expectations.

Total revenues were $49.9 billionb and premium and service revenues rose 5% to $44.7 billion, driven by PDP premium yield and membership growth, state-directed payments, and Medicaid rate increases. The consolidated health benefits ratio (HBR) improved to 87.3% from 87.5%, led by a 50 basis point improvement in Medicaid (93.1%) and an 180 basis point improvement in Medicare (84.9%), which benefited from the absence of a Medicare Advantage premium deficiency reserve this year. Commercial HBR was slightly worse at 75.3%, reflecting higher Marketplace Silver acuity.

Management raised full-year 2026 guidance floors: GAAP diluted EPS to greater than $2.37c and adjusted diluted EPS to greater than $3.40, and raised premium and service revenue guidance by $1.0 billion to $171.0-$175.0 billion, driven by Medicaid. Guidance includes a full-year HBR of 90.9%-91.7% and an SG&A ratio of 7.0%-7.6%. Balance sheet deleveraging continued, with $1.0 billion of 2027 senior notes repurchased in March using proceeds from a partial sale of 2025 CMS PDP receivables.

Debt to capitalization fell to 43.2% from 46.5% at year-end, though total debt remained $16.4 billiond and cash available for general corporate use was only $437 million. Operating cash flow of $4.4 billion was flattered by timing benefits, including the receivables sale and delayed premium payments from a state partner received in April. Key watch items for investors include the quality of earnings, since operating cash flow benefited from timing items, and the sustainability of Medicaid margin improvement amid rising membership pressure in Marketplace, which fell about 36% year over year to 3.6 million.

Total at-risk membership declined to 26.3 million from 27.9 million, though PDP membership grew to 8.8 million. The filing is furnished under Item 2.02 and is not deemed filed under the Exchange Act.

02—Key points

Key Highlights

  1. GAAP diluted EPS of $3.11 and adjusted diluted EPS of $3.37 for Q1 2026, with adjusted EPS roughly $0.50 above management's expectations.
  2. Full-year 2026 guidance raised: GAAP diluted EPS floor to greater than $2.37 and adjusted diluted EPS floor to greater than $3.40.
  3. Premium and service revenue guidance raised by $1.0 billion to $171.0-$175.0 billion, driven by Medicaid.
  4. Consolidated HBR improved to 87.3% from 87.5%; Medicaid HBR fell to 93.1% and Medicare HBR to 84.9%, while Commercial HBR rose to 75.3%.
  5. Debt reduced by $1.0 billion through repurchase of 2027 senior notes funded by a partial sale of 2025 CMS PDP receivables; debt-to-capitalization fell to 43.2% from 46.5%.
  6. Operating cash flow of $4.4 billion was boosted by timing items, including the receivables sale and delayed state premium payments received in April.
  7. Marketplace membership fell to 3.6 million from 5.6 million a year earlier, while PDP membership grew to 8.8 million.

03—Questions

Frequently Asked Questions

  1. Did Centene beat expectations in Q1 2026?

    Yes. Management reported adjusted diluted EPS of $3.37, about $0.50 above its internal expectations, driven by lower Medicaid and Medicare medical cost ratios and favorable SG&A. Commercial HBR was slightly above expectations due to higher Marketplace Silver acuity.

  2. Why did Centene raise its 2026 guidance?

    The strong Q1 results and continued margin recovery allowed management to raise the adjusted diluted EPS floor to greater than $3.40 and the GAAP EPS floor to greater than $2.37. Premium and service revenue guidance also rose by $1.0 billion, mainly from Medicaid.

  3. How healthy is Centene's cash flow and balance sheet?

    Operating cash flow of $4.4 billion looks strong, but part of it reflects timing benefits, including the receivables sale and delayed premium payments that were received in April. Total debt was $16.4 billion at quarter end, with no borrowings on the $4.0 billion revolver. Cash available for general corporate use was only $437 million, so liquidity at the parent level is limited.

  4. What are the main risks to the margin improvement?

    Medicaid HBR gains depend on sustained medical cost management and rate adequacy, and Commercial HBR is pressured by Marketplace acuity. Marketplace membership has shrunk sharply, and the guidance HBR range of 90.9% to 91.7% implies that margins must be held for the rest of the year. Reliance on state-directed payments and CMS program changes also adds uncertainty.

  5. Is the 8-K financial information formally filed with the SEC?

    The press release is furnished under Item 2.02 rather than filed. As a result, it is not subject to Section 18 liability and is not incorporated by reference into Securities Act or Exchange Act filings unless specifically referenced.

04—Continue

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