‘Back on track’: Centene swings to more than $1B in profit in Q2
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The managed care giant raised its 2026 earnings outlook for the second time this year following the results, which its CFO called "fantastic." Centene handily beat Wall Street's expectations in the second quarter, as higher revenue from premiums and rate hikes for the managed care company's plans shielded its bottom line from elevated medical costs. Centene posted $53.6 billion in revenue, up 10% year over year, and $1.1 billion in profit in the quarter. That's compared to a loss of $253 million the same time last year when Centene was caught off guard by higher spending - the insurer's first quarterly loss in more than two years. Centene raised its 2026 financial outlook on Tuesday following the outperformance, which TD Cowen analyst Ryan Langston called "huge." "Any way you slice it, this was a fantastic quarter," CFO Drew Asher said during a morning call with investors. It's the second beat-and-raise this year for the St. Louis-based insurer, following a buoyant first quarter when Centene bumped its 2026 guidance on the back of better controlled medical costs. Some investors griped at the time that Centene should have raised its outlook more. They're now getting their wish. Centene now expects 2026 adjusted earnings per share of greater than $4.80, up from $3.40 previously. The outlook is better than the $2.08 in adjusted EPS that Centene eked out in 2025, but well below...
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