Centene (CNC)
Market Price (7/4/2026): $67.61 | Market Cap: $33.3 BilInvestor Relations Sector: Health Care | Industry: Managed Health Care
Centene (CNC)
Market Price (7/4/2026): $67.61Market Cap: $33.3 BilSector: Health CareIndustry: Managed Health Care
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -22% Attractive yieldFCF Yield is 21% Stock buyback supportStock Buyback 3Y Total is 4.8 Bil Attractive cash flow generationCFO LTM is 7.9 Bil, FCF LTM is 7.1 Bil Megatrend and thematic driversMegatrends include Digital Health & Telemedicine, and Aging Population & Chronic Disease. Themes include Telehealth Platforms, Health Data Analytics, Show more. | Trading close to highsDist 52W High is -0.7% Weak multi-year price returns2Y Excs Rtn is -36%, 3Y Excs Rtn is -69% | Stock price has recently run up significantly12M Rtn12 month market price return is 101% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 62% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -23% Key risksCNC key risks include [1] securities lawsuits and an SEC investigation over alleged misleading statements, Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -22% |
| Attractive yieldFCF Yield is 21% |
| Stock buyback supportStock Buyback 3Y Total is 4.8 Bil |
| Attractive cash flow generationCFO LTM is 7.9 Bil, FCF LTM is 7.1 Bil |
| Megatrend and thematic driversMegatrends include Digital Health & Telemedicine, and Aging Population & Chronic Disease. Themes include Telehealth Platforms, Health Data Analytics, Show more. |
| Trading close to highsDist 52W High is -0.7% |
| Weak multi-year price returns2Y Excs Rtn is -36%, 3Y Excs Rtn is -69% |
| Stock price has recently run up significantly12M Rtn12 month market price return is 101% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 62% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -23% |
| Key risksCNC key risks include [1] securities lawsuits and an SEC investigation over alleged misleading statements, Show more. |
Qualitative Assessment
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Centene (CNC) stock has gained about 105% since 3/31/2026 because of the following key factors:
1. Strong fiscal Q1 2026 Earnings Beat and Upgraded Full-Year Guidance: Centene reported adjusted diluted earnings per share (EPS) of $3.37 for fiscal Q1 2026, significantly surpassing the consensus estimate of $2.23 by $1.14, representing a 51.1% beat. Concurrently, the company raised its full-year 2026 adjusted diluted EPS guidance to "greater than $3.40" from its prior outlook of "greater than $3.00," and increased its premium and service revenues guidance by $1 billion to a range of $171 billion to $175 billion. This substantial earnings outperformance and optimistic revised outlook served as a key catalyst for the stock's appreciation.
2. Improved Medical Cost Management and Health Benefits Ratio (HBR): The company demonstrated effective control over medical costs, resulting in a consolidated Health Benefits Ratio (HBR) of 87.3% in fiscal Q1 2026, an improvement from 87.5% in the comparable period of 2025. This improvement was particularly notable in its Medicaid segment, where the HBR decreased by 50 basis points to 93.1%, driven by favorable rate and revenue adjustments and continued progress in managing medical costs.
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Centene (CNC) stock has gained about 105% since 3/31/2026 because of the following key factors:
1. Strong fiscal Q1 2026 Earnings Beat and Upgraded Full-Year Guidance: Centene reported adjusted diluted earnings per share (EPS) of $3.37 for fiscal Q1 2026, significantly surpassing the consensus estimate of $2.23 by $1.14, representing a 51.1% beat. Concurrently, the company raised its full-year 2026 adjusted diluted EPS guidance to "greater than $3.40" from its prior outlook of "greater than $3.00," and increased its premium and service revenues guidance by $1 billion to a range of $171 billion to $175 billion. This substantial earnings outperformance and optimistic revised outlook served as a key catalyst for the stock's appreciation.
2. Improved Medical Cost Management and Health Benefits Ratio (HBR): The company demonstrated effective control over medical costs, resulting in a consolidated Health Benefits Ratio (HBR) of 87.3% in fiscal Q1 2026, an improvement from 87.5% in the comparable period of 2025. This improvement was particularly notable in its Medicaid segment, where the HBR decreased by 50 basis points to 93.1%, driven by favorable rate and revenue adjustments and continued progress in managing medical costs.
3. Positive Developments in Medicare Advantage and Healthcare Exchange Risk Adjustments: Centene, along with the broader managed care sector, benefited from optimism surrounding Medicare Advantage, specifically the U.S. government's proposed increase in 2027 Medicare Advantage payments, which eased concerns about future margins. Additionally, a Baird analysis on July 1, 2026, indicated favorable adjustments for the 2025 healthcare exchange risk factors for Centene, which contributed to a 5% stock increase on that day.
4. Numerous Analyst Upgrades and Raised Price Targets: Following the robust fiscal Q1 2026 results and positive outlook, several prominent analysts revised their ratings and increased price targets for Centene. For instance, Bank of America raised its price target to $74, Barclays boosted its target to $75, and JPMorgan increased its target to $60. RBC Capital initiated coverage with a "Sector Perform" rating and a $70 price target, reflecting growing confidence in Centene's Medicaid margin recovery. These positive analyst sentiments contributed to the stock's significant upward momentum.
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Stock Movement Drivers
Fundamental Drivers
The 107.3% change in CNC stock from 3/31/2026 to 7/3/2026 was primarily driven by a 104.0% change in the company's P/S Multiple.| (LTM values as of) | 3312026 | 7032026 | Change |
|---|---|---|---|
| Stock Price ($) | 32.74 | 67.86 | 107.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 194,777 | 198,101 | 1.7% |
| P/S Multiple | 0.1 | 0.2 | 104.0% |
| Shares Outstanding (Mil) | 492 | 492 | -0.1% |
| Cumulative Contribution | 107.3% |
Market Drivers
3/31/2026 to 7/3/2026| Return | Correlation | |
|---|---|---|
| CNC | 107.3% | |
| Market (SPY) | 14.5% | -9.6% |
| Sector (XLV) | 11.7% | 9.4% |
Fundamental Drivers
The 64.9% change in CNC stock from 12/31/2025 to 7/3/2026 was primarily driven by a 55.0% change in the company's P/S Multiple.| (LTM values as of) | 12312025 | 7032026 | Change |
|---|---|---|---|
| Stock Price ($) | 41.15 | 67.86 | 64.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 185,857 | 198,101 | 6.6% |
| P/S Multiple | 0.1 | 0.2 | 55.0% |
| Shares Outstanding (Mil) | 491 | 492 | -0.2% |
| Cumulative Contribution | 64.9% |
Market Drivers
12/31/2025 to 7/3/2026| Return | Correlation | |
|---|---|---|
| CNC | 64.9% | |
| Market (SPY) | 9.5% | 4.5% |
| Sector (XLV) | 6.2% | 20.5% |
Fundamental Drivers
The 25.0% change in CNC stock from 6/30/2025 to 7/3/2026 was primarily driven by a 17.0% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 6302025 | 7032026 | Change |
|---|---|---|---|
| Stock Price ($) | 54.28 | 67.86 | 25.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 169,284 | 198,101 | 17.0% |
| P/S Multiple | 0.2 | 0.2 | 5.9% |
| Shares Outstanding (Mil) | 496 | 492 | 0.8% |
| Cumulative Contribution | 25.0% |
Market Drivers
6/30/2025 to 7/3/2026| Return | Correlation | |
|---|---|---|
| CNC | 25.0% | |
| Market (SPY) | 21.6% | 5.3% |
| Sector (XLV) | 23.1% | 27.4% |
Fundamental Drivers
The 0.6% change in CNC stock from 6/30/2023 to 7/3/2026 was primarily driven by a 35.5% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 6302023 | 7032026 | Change |
|---|---|---|---|
| Stock Price ($) | 67.45 | 67.86 | 0.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 146,251 | 198,101 | 35.5% |
| P/S Multiple | 0.3 | 0.2 | -33.6% |
| Shares Outstanding (Mil) | 551 | 492 | 11.9% |
| Cumulative Contribution | 0.6% |
Market Drivers
6/30/2023 to 7/3/2026| Return | Correlation | |
|---|---|---|
| CNC | 0.6% | |
| Market (SPY) | 74.0% | 6.6% |
| Sector (XLV) | 29.1% | 31.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CNC Return | 37% | -0% | -10% | -18% | -32% | 66% | 14% |
| Peers Return | 42% | 5% | -4% | -25% | 2% | 36% | 49% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 99% |
Monthly Win Rates [3] | |||||||
| CNC Win Rate | 50% | 58% | 58% | 50% | 50% | 86% | |
| Peers Win Rate | 58% | 48% | 42% | 42% | 55% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| CNC Max Drawdown | -20% | -24% | -25% | -29% | -62% | -33% | |
| Peers Max Drawdown | -14% | -20% | -21% | -37% | -41% | -30% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: UNH, ELV, CVS, MOH, HUM. See CNC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/2/2026 (YTD)
How Low Can It Go
| Event | CNC | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -12.9% | -9.5% |
| % Gain to Breakeven | 14.8% | 10.5% |
| Time to Breakeven | 24 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -15.2% | -6.7% |
| % Gain to Breakeven | 17.9% | 7.1% |
| Time to Breakeven | 168 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -10.8% | -24.5% |
| % Gain to Breakeven | 12.1% | 32.4% |
| Time to Breakeven | 15 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.4% | -33.7% |
| % Gain to Breakeven | 47.9% | 50.9% |
| Time to Breakeven | 23 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -24.9% | -19.2% |
| % Gain to Breakeven | 33.1% | 23.8% |
| Time to Breakeven | 479 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -26.6% | -3.7% |
| % Gain to Breakeven | 36.2% | 3.9% |
| Time to Breakeven | 90 days | 6 days |
In The Past
Centene's stock fell -4.9% during the 2025 US Tariff Shock. Such a loss loss requires a 5.1% gain to breakeven.
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Asset Allocation
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| Event | CNC | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -32.4% | -33.7% |
| % Gain to Breakeven | 47.9% | 50.9% |
| Time to Breakeven | 23 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -24.9% | -19.2% |
| % Gain to Breakeven | 33.1% | 23.8% |
| Time to Breakeven | 479 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -26.6% | -3.7% |
| % Gain to Breakeven | 36.2% | 3.9% |
| Time to Breakeven | 90 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -26.8% | -12.2% |
| % Gain to Breakeven | 36.5% | 13.9% |
| Time to Breakeven | 288 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -26.3% | -17.9% |
| % Gain to Breakeven | 35.6% | 21.8% |
| Time to Breakeven | 99 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -50.9% | -53.4% |
| % Gain to Breakeven | 103.5% | 114.4% |
| Time to Breakeven | 997 days | 1085 days |
In The Past
Centene's stock fell -4.9% during the 2025 US Tariff Shock. Such a loss loss requires a 5.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Centene (CNC)
Centene Corporation (CNC) is a multi-national healthcare enterprise focused on delivering comprehensive programs and services primarily to under-insured and uninsured individuals within the United States. The company operates through two main business segments: Managed Care and Specialty Services, aiming to provide a wide range of healthcare solutions across various populations and client types.
The Managed Care segment is Centene's core business, offering health plan coverage predominantly through government-subsidized programs. These include Medicaid, the State Children's Health Insurance Program (CHIP), long-term services and support, foster care, and Medicare-Medicaid plans, which serve dually eligible, aged, blind, or disabled individuals. Its health plans cover extensive services such as primary and specialty physician care, hospital services, emergency care, vision, dental, pharmacy benefits, behavioral health, and care coordination. Additionally, this segment provides commercial healthcare products to employers and directly to members.
Centene's Specialty Services segment provides targeted offerings that complement its managed care operations. These services include pharmacy benefits management, nurse advice lines, vision and dental services, and staffing services for correctional systems and Military Health System eligible beneficiaries. This segment serves a diverse clientele, including state programs, correctional facilities, various healthcare organizations, employer groups, and other commercial entities, broadening Centene's impact in the healthcare landscape.
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Here are 1-3 brief analogies for Centene (CNC):
- Think of it as Humana, but specialized in Medicaid and Medicare-Medicaid plans.
- The UnitedHealth Group for government-sponsored health programs.
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- Government-Sponsored Health Plans: Centene offers comprehensive health plan coverage to individuals enrolled in government-subsidized programs such as Medicaid, the State Children's Health Insurance Program (CHIP), and Medicare-Medicaid plans.
- Commercial Healthcare Products: The company provides various health insurance products for individuals, small groups, and large commercial groups, directly to members and employers.
- Pharmacy Benefits Management (PBM) Services: Centene delivers services focused on managing prescription drug benefits for various clients, including state programs and healthcare organizations.
- Specialty Healthcare Services: This category includes nurse advice lines, after-hours support, vision and dental services, and specialized offerings for Military Health System beneficiaries.
- Staffing Services: Centene provides staffing solutions to correctional systems and other government agencies.
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Major Customers of Centene (CNC)
Centene primarily serves individuals, with a significant portion of its business derived from managing government-subsidized healthcare programs for these individuals. Additionally, it sells commercial health plans directly to individuals and employer groups, and provides specialty services to government agencies and commercial organizations. Its major customer categories are:
- Individuals covered by Government-Sponsored Programs: This category includes individuals enrolled in Medicaid, the State Children's Health Insurance Program (SCHIP), Medicare-Medicaid plans, long-term services and support, foster care programs, and aged, blind, or disabled programs. Centene contracts with state and federal governments to provide comprehensive healthcare services to these beneficiaries.
- Individuals and Employer Groups Purchasing Commercial Health Plans: Centene offers various individual, small group, and large group commercial healthcare products. This includes individuals who directly purchase health plans, as well as employers who provide Centene's health products as part of their employee benefits.
- Government Agencies and Correctional Facilities: Centene's Specialty Services segment provides services such as pharmacy benefits management, nurse advice lines, vision and dental services, and staffing services directly to state programs, correctional systems, the Military Health System, and other government agencies.
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Sarah M. London, Chief Executive Officer
Sarah London was appointed CEO of Centene Corporation in March 2022, becoming the youngest female CEO of a Fortune 500 company at the time. Prior to her CEO appointment, she served as Centene's Vice Chairman, where she was responsible for strategy, technology, ancillary services, enterprise compliance and quality, and Centene's portfolio of independent, non-health plan companies. Before joining Centene in 2020, she was an Operating Partner at Optum Ventures, the venture capital arm of UnitedHealth Group. Her career also includes leadership roles at Optum Analytics, where she was Chief Product Officer, and at Humedica, a clinical analytics start-up acquired by Optum. She also held positions at Accretive Health (now R1 RCM) and Health Leads.
Drew Asher, Executive Vice President and Chief Financial Officer
Drew Asher was appointed Executive Vice President and Chief Financial Officer of Centene Corporation in May 2021. He joined Centene in January 2020 following the acquisition of WellCare Health Plans, where he had served as Chief Financial Officer for six years, starting in 2014. Before his tenure at WellCare, Mr. Asher held senior finance positions, including Chief Financial Officer of Aetna's local and regional businesses, a role he assumed after Coventry Health Care was acquired by Aetna in May 2013. He spent 15 years at Coventry Health Care, most recently as Senior Vice President, Corporate Finance. He began his career as an auditor and accountant at Deloitte & Touche LLP.
Ken Fasola, President
Ken Fasola was named President of Centene Corporation in December 2022. Prior to this role, he served as Centene's Executive Vice President of Health Care Enterprises and was a member of the Office of the CEO. Mr. Fasola joined Centene through the acquisition of Magellan Health Inc., where he was the Chief Executive Officer and a member of the Board of Directors. He also served as Chairman, President, and CEO of HealthMarkets, Inc., a company later acquired by UnitedHealth Group in 2019. His extensive healthcare career spans over three decades, including nearly twenty years in executive leadership roles at UnitedHealth Group and Humana, where he was CEO of Secure Horizons (a division of UnitedHealth Group) and COO of Market Operations, respectively.
Jim Murray, Executive Vice President, Chief Operating Officer
Jim Murray was appointed Executive Vice President, Chief Operating Officer of Centene Corporation in December 2022. Previously, he served as Centene's Chief Transformation Officer, where he led the company's Value Creation Office and the Centene Advanced Behavioral Health division. Before joining Centene, Mr. Murray was President and Chief Operating Officer for Magellan Health, which Centene acquired in January 2022. His experience also includes serving as President of PrimeWest Health and Chief Executive Officer of LifeCare HealthPartners, a hospital system. Earlier in his career, he held the position of Executive Vice President and Chief Operating Officer for Humana.
Brent Layton, Senior Advisor to the CEO
As of December 2022, Brent Layton transitioned to the role of Senior Advisor to the CEO at Centene Corporation, beginning his move towards retirement. He previously served as Centene's President and Chief Operating Officer, a role he held after being appointed President of U.S. Health Plans, Products, and International in March 2021, and subsequently COO in September 2021. Mr. Layton joined Centene in 2006, following five years as a consultant for the company. With over 30 years of experience in the healthcare and public policy sectors, he previously operated a managed care consulting firm and founded and managed various healthcare companies, including Avesis and Absolute Care Medical Centers.
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The key risks to Centene Corporation's (CNC) business are primarily rooted in its significant reliance on government-sponsored healthcare programs and the dynamic regulatory and cost environment of the healthcare sector.
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Regulatory Risks and Government Policy Changes: Centene derives a substantial portion of its revenue from government-backed healthcare programs, including Medicaid, the Affordable Care Act (ACA) marketplace, and Medicare. Consequently, the company is highly susceptible to shifts in government policies, funding, and regulations. These changes can include reductions in Medicaid funding, the expiration of ACA subsidies, and unfavorable adjustments in risk adjustment mechanisms, all of which can directly impact membership numbers, reimbursement rates, and overall profitability. For instance, recent reports indicated Centene's shares plummeted amid concerns over ACA membership declines, and there have been proposals to redirect federal healthcare funds directly to individuals, bypassing traditional insurers.
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Rising Healthcare Costs and Medical Utilization: Centene faces significant pressure from escalating healthcare costs, particularly in areas such as behavioral health, home health services, and high-cost prescription drugs. These rising costs, especially within Medicaid programs and ACA marketplace operations, can erode the company's margins if reimbursement rates from government contracts do not adequately keep pace. This mismatch between increasing medical costs and static or insufficient reimbursement rates poses a continuous challenge to Centene's profitability.
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Legal and Regulatory Scrutiny of PBM Practices: Centene has a history of facing legal and regulatory challenges related to its pharmacy benefit management (PBM) business model. The company has been subject to investigations and multi-state settlements over allegations of overpayments by state Medicaid programs. Furthermore, a class-action lawsuit has been filed, alleging securities fraud and corporate misrepresentation concerning Centene's compliance with state Medicaid billing practices and its PBM operations. These legal headwinds can result in substantial financial penalties, increased legal expenses, and reputational damage.
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New technology-first healthcare enterprises leveraging advanced artificial intelligence and data analytics to provide highly efficient, personalized, and proactive managed care services for government-subsidized populations. These emerging entities could challenge Centene's ability to win and retain state contracts by demonstrating superior outcomes, lower administrative costs, and enhanced member experiences through their innovative use of technology, potentially disintermediating Centene's traditional, network-heavy model.
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Centene Corporation (CNC) operates in several large addressable markets within the U.S. healthcare sector, primarily focusing on government-sponsored programs and specialty services.
Managed Care
- Medicaid: The total Managed Medicaid market, covering both managed care and fee-for-service, reached 70.5 million people in June 2025. In FY 2023, state and federal spending on Medicaid services totaled over $880 billion, with payments to comprehensive risk-based Managed Care Organizations (MCOs) accounting for about 52% of this total. As of March 2025, Centene led the national Medicaid managed care market with 17.7% market share, out of an estimated 66 million enrollees in Medicaid managed care programs across 41 states. Centene directly served 12 million Managed Medicaid members at the end of Q2 2025.
- Medicare Advantage: The Medicare Advantage market in the U.S. saw 32.8 million people enrolled in 2024, representing 54% of the eligible Medicare population. This market grew to 34.5 million members in 2024. The Medicare Advantage market size within the U.S. reached 34.1 million beneficiaries in 2025. The global Medicare Advantage market, largely driven by the U.S., was estimated at USD 445.97 billion in 2025 and is projected to grow to USD 1,060.04 billion by 2034.
Specialty Services
- Pharmacy Benefits Management (PBM): The U.S. pharmacy benefit management market size was estimated at USD 519.45 billion in 2025. Another estimate puts the U.S. PBM market size at USD 459.65 billion in 2025, projected to reach approximately USD 1,041.11 billion by 2034. The U.S. market stood at USD 626.47 billion in 2026.
- Dental Services: The U.S. dental services market size was estimated at USD 174.91 billion in 2025 and is predicted to increase to approximately USD 281.20 billion by 2035. Another report valued the U.S. dental services market at USD 174.2 billion in 2025, growing to an estimated USD 234.11 billion by 2031.
- Vision Care: The U.S. eye care market size was estimated at USD 27.3 billion in 2024 and is expected to reach USD 29.00 billion in 2025. The demand for vision care in the USA is projected to grow from USD 37.2 billion in 2025 to USD 71.5 billion by 2035. The overall U.S. optical industry achieved a total market value of $68.3 billion in 2024.
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Centene Corporation (CNC) anticipates several key drivers for future revenue growth over the next 2-3 years, primarily stemming from its government-sponsored healthcare programs, despite some headwinds in other segments.
- Growth in Medicare Business, particularly Prescription Drug Plans (PDP): Centene expects its Medicare segment to be a significant driver of revenue growth. Management projects an increase in Medicare premium revenue of approximately $7.5 billion in 2026, largely fueled by its Prescription Drug Plan (PDP) business, which is tracking for high single-digit percentage growth in Part D enrollment.
- Favorable Medicaid Rate Adjustments: While Centene expects a decline in Medicaid member months, the company is implementing mid-4% net rate increases for 2026. These favorable rate adjustments contribute positively to the premium revenue generated within its Medicaid programs, helping to offset the impact of membership attrition.
- Strategic Pricing in the Health Insurance Marketplace: Although the Health Insurance Marketplace segment is projected to experience a decrease in overall revenue, Centene has undertaken strategic pricing actions and product mix adjustments for 2026. These initiatives are aimed at improving pretax margins and stabilizing revenue yield from its member base in this segment.
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Share Repurchases
- Centene repurchased 42.0 million shares for $3.0 billion in 2024 through its stock repurchase program.
- The company's annual share buybacks were $475 million in 2025 and $1.633 billion in 2023.
- As of December 31, 2024, Centene was authorized to repurchase up to $10.0 billion of its stock, with $2.2 billion remaining under this authorization.
Share Issuance
- Centene's shares outstanding declined to 0.493 billion in 2025, a 5.85% decrease from 2024.
- Shares outstanding further decreased by 4.02% in 2024 to 0.524 billion, and by 6.24% in 2023 to 0.546 billion, indicating net share repurchases over new issuances.
- As of July 23, 2025, Centene had 491.133 million shares of common stock outstanding.
Outbound Investments
- Centene acquired Magellan Health for $2.2 billion in January 2021.
- Centene acquired the remaining equity interests in Circle Health in July 2021 and subsequently signed an agreement to sell Circle Health Group for approximately $1.2 billion (inclusive of debt assumed) in August 2023.
- In December 2024, Centene executives indicated a focus on acquiring health plans or other assets in 2025 to boost efforts in ICHRA and dual-eligible markets.
Capital Expenditures
- Centene's long-term investments for 2024 were $17.429 billion, marking a 7.02% increase from 2023.
- Long-term investments grew to $16.286 billion in 2023, an increase of 10.91% from 2022.
- The company reported $18.180 billion in long-term investments for the quarter ending December 31, 2025.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 313.31 |
| Mkt Cap | 69.8 |
| Rev LTM | 199,258 |
| Op Inc LTM | 6,108 |
| FCF LTM | 6,781 |
| FCF 3Y Avg | 3,938 |
| CFO LTM | 7,774 |
| CFO 3Y Avg | 4,902 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.6% |
| Rev Chg 3Y Avg | 10.5% |
| Rev Chg Q | 4.4% |
| QoQ Delta Rev Chg LTM | 1.0% |
| Op Inc Chg LTM | -56.6% |
| Op Inc Chg 3Y Avg | -14.0% |
| Op Mgn LTM | 2.0% |
| Op Mgn 3Y Avg | 3.2% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 3.2% |
| CFO/Rev 3Y Avg | 2.5% |
| FCF/Rev LTM | 2.5% |
| FCF/Rev 3Y Avg | 2.0% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Medicaid | 110,434 | 101,417 | 100,759 | 93,151 | |
| Commercial | 42,003 | 33,702 | 24,845 | 17,380 | |
| Medicare | 37,210 | 23,032 | 22,261 | 22,484 | |
| Other/Eliminations | 5,130 | 4,920 | 6,134 | 11,532 | |
| Managed Care | 120,119 | ||||
| Specialty Services | 5,863 | ||||
| Total | 194,777 | 163,071 | 153,999 | 144,547 | 125,982 |
| $ Mil | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Managed Care | 1,913 | 1,789 | 3,031 | 1,806 | 1,310 |
| Specialty Services | -595 | -5 | 51 | -25 | 148 |
| Total | 1,318 | 1,784 | 3,082 | 1,781 | 1,458 |
| $ Mil | 2019 | 2018 | 2017 | 2016 | 2014 |
|---|---|---|---|---|---|
| Managed Care | 37,689 | 27,627 | 19,959 | 17,962 | 4,620 |
| Specialty Services | 3,305 | 3,274 | 1,896 | 2,235 | 1,118 |
| Total | 40,994 | 30,901 | 21,855 | 20,197 | 5,738 |
Price Behavior
| Market Price | $67.86 | |
| Market Cap ($ Bil) | 33.4 | |
| First Trading Date | 12/13/2001 | |
| Distance from 52W High | -0.7% | |
| 50 Days | 200 Days | |
| DMA Price | $64.05 | $71.61 |
| DMA Trend | up | up |
| Distance from DMA | 6.0% | -5.2% |
| 3M | 1YR | |
| Volatility | 48.6% | 51.1% |
| Downside Capture | -294.17 | 2.45 |
| Upside Capture | 87.38 | 87.97 |
| Correlation (SPY) | -7.6% | 9.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.03 | -0.01 | -0.18 | 0.18 | 0.28 | 0.20 |
| Up Beta | -3.26 | -1.86 | -0.70 | -0.86 | -0.44 | 0.12 |
| Down Beta | 1.01 | 1.41 | 2.05 | 1.19 | 1.05 | 0.23 |
| Up Capture | 97% | 60% | 111% | 68% | 19% | 4% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 9 | 19 | 36 | 67 | 136 | 386 |
| Down Capture | 7% | -69% | -333% | -38% | 10% | 47% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 12 | 22 | 27 | 58 | 114 | 361 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CNC | |
|---|---|---|---|---|
| CNC | 22.5% | 65.3% | 0.62 | - |
| Sector ETF (XLV) | 21.4% | 15.6% | 1.05 | 26.9% |
| Equity (SPY) | 21.7% | 12.5% | 1.29 | 5.1% |
| Gold (GLD) | 23.1% | 27.7% | 0.73 | -3.7% |
| Commodities (DBC) | 21.3% | 18.6% | 0.90 | -3.0% |
| Real Estate (VNQ) | 13.6% | 13.8% | 0.68 | 9.7% |
| Bitcoin (BTCUSD) | -42.0% | 42.7% | -1.15 | -3.9% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CNC | |
|---|---|---|---|---|
| CNC | -1.0% | 39.6% | 0.10 | - |
| Sector ETF (XLV) | 7.2% | 14.9% | 0.30 | 39.1% |
| Equity (SPY) | 13.3% | 17.1% | 0.60 | 17.9% |
| Gold (GLD) | 17.9% | 18.3% | 0.79 | -1.6% |
| Commodities (DBC) | 6.9% | 19.5% | 0.25 | 1.9% |
| Real Estate (VNQ) | 3.1% | 18.9% | 0.06 | 21.5% |
| Bitcoin (BTCUSD) | 12.2% | 53.8% | 0.41 | 3.4% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CNC | |
|---|---|---|---|---|
| CNC | 7.2% | 38.6% | 0.31 | - |
| Sector ETF (XLV) | 10.6% | 16.6% | 0.52 | 49.5% |
| Equity (SPY) | 15.4% | 18.0% | 0.73 | 35.9% |
| Gold (GLD) | 12.1% | 16.1% | 0.61 | -1.6% |
| Commodities (DBC) | 5.7% | 18.0% | 0.25 | 11.6% |
| Real Estate (VNQ) | 5.5% | 20.7% | 0.23 | 32.7% |
| Bitcoin (BTCUSD) | 59.0% | 66.2% | 0.99 | 3.9% |
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Returns Analyses
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | 8.9% | 6.9% | 18.8% |
| 2/6/2026 | -3.7% | -1.9% | 8.5% |
| 10/29/2025 | -6.2% | -1.3% | 1.5% |
| 7/25/2025 | 6.1% | -2.6% | 9.9% |
| 4/25/2025 | 3.1% | 4.3% | -0.1% |
| 2/4/2025 | -0.9% | -6.4% | -3.0% |
| 10/25/2024 | -4.0% | -1.1% | -4.3% |
| 7/26/2024 | 0.5% | 6.8% | 6.3% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 14 |
| # Negative | 11 | 12 | 10 |
| Median Positive | 3.1% | 2.9% | 6.4% |
| Median Negative | -3.0% | -1.9% | -3.6% |
| Max Positive | 10.3% | 12.3% | 19.9% |
| Max Negative | -6.2% | -6.4% | -11.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | 8.9% | 6.9% | 18.8% |
| 2/6/2026 | -3.7% | -1.9% | 8.5% |
| 10/29/2025 | -6.2% | -1.3% | 1.5% |
| 7/25/2025 | 6.1% | -2.6% | 9.9% |
| 4/25/2025 | 3.1% | 4.3% | -0.1% |
| 2/4/2025 | -0.9% | -6.4% | -3.0% |
| 10/25/2024 | -4.0% | -1.1% | -4.3% |
| 7/26/2024 | 0.5% | 6.8% | 6.3% |
| 4/26/2024 | -0.2% | 1.1% | -1.7% |
| 2/6/2024 | 0.0% | 2.4% | 6.3% |
| 10/24/2023 | -1.4% | -1.0% | 6.5% |
| 7/28/2023 | 2.9% | -0.6% | -3.3% |
| 4/25/2023 | 2.4% | 1.4% | -3.9% |
| 2/7/2023 | 2.7% | 3.4% | -7.7% |
| 10/25/2022 | 10.3% | 12.3% | 9.4% |
| 7/26/2022 | 1.3% | 0.3% | 3.5% |
| 4/26/2022 | -1.4% | -1.9% | 4.2% |
| 2/8/2022 | 6.0% | 1.5% | 2.5% |
| 10/26/2021 | -0.6% | -2.3% | 6.5% |
| 7/27/2021 | -3.0% | -3.2% | -11.1% |
| 4/27/2021 | -3.0% | 5.3% | 19.9% |
| 2/9/2021 | 3.5% | -0.1% | 5.8% |
| 10/27/2020 | -4.6% | 0.8% | -3.0% |
| 7/28/2020 | 3.3% | -2.5% | -7.6% |
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 14 |
| # Negative | 11 | 12 | 10 |
| Median Positive | 3.1% | 2.9% | 6.4% |
| Median Negative | -3.0% | -1.9% | -3.6% |
| Max Positive | 10.3% | 12.3% | 19.9% |
| Max Negative | -6.2% | -6.4% | -11.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/28/2026 | 10-Q |
| 12/31/2025 | 02/17/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/25/2025 | 10-Q |
| 03/31/2025 | 04/25/2025 | 10-Q |
| 12/31/2024 | 02/18/2025 | 10-K |
| 09/30/2024 | 10/25/2024 | 10-Q |
| 06/30/2024 | 07/26/2024 | 10-Q |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 02/20/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/28/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/21/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/26/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/28/2026 | 10-Q |
| 12/31/2025 | 02/17/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/25/2025 | 10-Q |
| 03/31/2025 | 04/25/2025 | 10-Q |
| 12/31/2024 | 02/18/2025 | 10-K |
| 09/30/2024 | 10/25/2024 | 10-Q |
| 06/30/2024 | 07/26/2024 | 10-Q |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 02/20/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/28/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/21/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/26/2022 | 10-Q |
| 03/31/2022 | 04/26/2022 | 10-Q |
| 12/31/2021 | 02/22/2022 | 10-K |
| 09/30/2021 | 10/26/2021 | 10-Q |
| 06/30/2021 | 07/27/2021 | 10-Q |
| 03/31/2021 | 04/27/2021 | 10-Q |
| 12/31/2020 | 02/22/2021 | 10-K |
| 09/30/2020 | 10/27/2020 | 10-Q |
| 06/30/2020 | 07/28/2020 | 10-Q |
| 03/31/2020 | 04/28/2020 | 10-Q |
| 12/31/2019 | 02/18/2020 | 10-K |
| 09/30/2019 | 10/22/2019 | 10-Q |
| 06/30/2019 | 07/23/2019 | 10-Q |
Recent Forward Guidance
Updated 5/31/2026Latest: Q1 2026 Earnings Reported 4/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Total Revenues | 187.50 Bil | 189.50 Bil | 191.50 Bil | 0.5% | Raised | Guidance: 188.50 Bil for 2026 | |
| 2026 Premium and Service Revenues | 171.00 Bil | 173.00 Bil | 175.00 Bil | 0.6% | Raised | Guidance: 172.00 Bil for 2026 | |
| 2026 GAAP Diluted EPS | 2.37 | 19.7% | Raised | Guidance: 1.98 for 2026 | |||
| 2026 Adjusted Diluted EPS | 3.4 | 13.3% | Raised | Guidance: 3 for 2026 | |||
| 2026 HBR | 0.91 | 0.91 | 0.92 | 0 | 0 | Affirmed | Guidance: 0.91 for 2026 |
| 2026 SG&A Expense Ratio | 0.07 | 0.07 | 0.08 | -1.4% | -0.1% | Lowered | Guidance: 0.07 for 2026 |
| 2026 Adjusted SG&A Expense Ratio | 0.07 | 0.07 | 0.08 | -1.4% | -0.1% | Lowered | Guidance: 0.07 for 2026 |
| 2026 Effective Tax Rate | 27.0% | 27.5% | 28.0% | 0 | 0 | Affirmed | Guidance: 27.5% for 2026 |
| 2026 Adjusted Effective Tax Rate | 26.0% | 26.5% | 27.0% | 0 | 0 | Affirmed | Guidance: 26.5% for 2026 |
| 2026 Diluted Shares Outstanding | 495.60 Mil | 497.10 Mil | 498.60 Mil | ||||
Prior: Q4 2025 Earnings Reported 2/6/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 GAAP diluted EPS | 1.98 | ||||||
| 2026 Adjusted diluted EPS | 3 | ||||||
| 2026 Total revenues | 186.50 Bil | 188.50 Bil | 190.50 Bil | ||||
| 2026 Premium and service revenues | 170.00 Bil | 172.00 Bil | 174.00 Bil | ||||
| 2026 HBR | 0.91 | 0.91 | 0.92 | ||||
| 2026 SG&A expense ratio | 0.07 | 0.07 | 0.08 | ||||
| 2026 Adjusted SG&A expense ratio | 0.07 | 0.07 | 0.08 | ||||
| 2026 Effective tax rate | 27.0% | 27.5% | 28.0% | ||||
| 2026 Adjusted effective tax rate | 26.0% | 26.5% | 27.0% | ||||
Insider Activity
Updated 7/1/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Burdick, Kenneth A | Direct | Sell | 6112026 | 64.55 | 80,000 | 5,164,000 | 12,721,896 | Form | |
| 2 | Burdick, Kenneth A | Direct | Sell | 12052025 | 39.00 | 32,796 | 1,279,044 | 10,622,232 | Form | |
| 3 | Burdick, Kenneth A | Direct | Sell | 12052025 | 39.04 | 33,211 | 1,296,557 | 11,913,482 | Form | |
| 4 | London, Sarah | Chief Executive Officer | Direct | Buy | 8112025 | 25.50 | 19,230 | 490,365 | 21,554,512 | Form |
| 5 | Samuels, Theodore R II | family trust | Buy | 7292025 | 27.62 | 9,000 | 248,580 | 883,840 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Burdick, Kenneth A | Direct | Sell | 6112026 | 64.55 | 80,000 | 5,164,000 | 12,721,896 | Form | |
| 2 | Burdick, Kenneth A | Direct | Sell | 12052025 | 39.00 | 32,796 | 1,279,044 | 10,622,232 | Form | |
| 3 | Burdick, Kenneth A | Direct | Sell | 12052025 | 39.04 | 33,211 | 1,296,557 | 11,913,482 | Form | |
| 4 | London, Sarah | Chief Executive Officer | Direct | Buy | 8112025 | 25.50 | 19,230 | 490,365 | 21,554,512 | Form |
| 5 | Samuels, Theodore R II | family trust | Buy | 7292025 | 27.62 | 9,000 | 248,580 | 883,840 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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