Centene Q4 revenue rises 23%, beats expectations

Overview

• Healthcare provider's Q4 revenue rose 23%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company to divest Magellan Health businesses, recording $513 mln impairment charge

Outlook

• Centene expects 2026 adjusted diluted EPS to be greater than $3.00

• Company projects 2026 total revenues between $186.5 bln and $190.5 bln

• Centene anticipates 2026 SG&A expense ratio between 7.1% and 7.7%

Result Drivers

• PREMIUM AND SERVICE REVENUE GROWTH - Driven by premium yield and membership growth in PDP and Marketplace businesses, as well as Medicaid rate increases

• HBR INCREASE - Higher Marketplace morbidity and PDP program changes increased medical costs, impacting health benefits ratio

• SG&A EXPENSE RATIO IMPROVEMENT - Improved due to disciplined expense management and leveraging higher revenues, despite growth in higher SG&A Marketplace business

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy."

• Wall Street's median 12-month price target for Centene Corp is $43.00, about 7.7% above its February 5 closing price of $39.92

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn14QCK8a

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