Centene raises 2026 guidance after third-quarter loss of $71 million

At-risk membership fell to 25.7 million as Marketplace enrollment contracted

Health insurer Centene raised its 2026 revenue and earnings guidance on Oct. 27 after reporting a third-quarter loss of $71 million and posting adjusted earnings and revenue above analyst estimates. The company said performance in Medicare Advantage and Prescription Drug Plans supported a faster earnings recovery, while total at-risk membership fell to 25.7 million.

Centene increased its full-year revenue forecast to a range of $196.5 billion to $200.5 billion, up from its previous forecast of $193.5 billion to $197.5 billion. The increase was the third time the company raised its full-year outlook. Analysts currently expected revenue of $196.55 billion for 2026.

The company also lifted its earnings guidance. Centene now expects 2026 earnings per share of more than $3.46, up from a previous guidance floor of $3.11. On an adjusted basis, the company expects more than $5.20 a share, up from $4.80. Analysts expected an adjusted profit of $4.87 a share for the year.

Centene Chief Executive Sarah London said, “Solid underlying fundamentals within our core businesses have powered a faster recovery to our earnings trajectory than previously anticipated.”

Centene reported a third-quarter loss of $71 million, or 14 cents a share. A year earlier, the company reported a loss of $6.63 billion, or $13.50 a share.

On an adjusted basis, Centene earned 58 cents a share, above the analyst forecast of 10 cents. Total revenue rose to $50.65 billion from $49.69 billion a year earlier and exceeded the analyst estimate of $47.12 billion.

The company’s total at-risk membership fell to 25.7 million as of Sept. 30, down from 28 million a year earlier. Centene said the decline primarily reflected a contraction in Health Insurance Marketplace enrollment.

Centene’s health-benefits ratio, a measure of how much was paid to cover enrollees’ medical expenses, held steady at 92.7%. The figure was below the mean analyst estimate of 92.9%, based on FactSet.

Centene said underlying performance in its Medicare Advantage and Prescription Drug Plans drove the stability. The company also cited improved pricing and risk transfer in the Marketplace, reflecting member acuity.

For the full year, Centene expects a health-benefits ratio between 90.4% and 91.1%; analysts expected 90.9%. Premium-and-services revenue expectations remained unchanged at $173 billion to $177 billion.

A market-data entry showed Centene shares, ticker CNC, up 2.09%. Separately, shares recently fell 1.7% to $66.89 in premarket trading Tuesday.

The update leaves Centene projecting higher revenue and earnings despite lower at-risk membership. Its premium-and-services revenue forecast did not change, while its revenue and earnings guidance rose and medical cost control remained a stated factor in the company’s performance.