CNC

The health insurer raised its forecast after a solid quarter, but investors focused on the one business so broken it’s forcing a strategic retreat. If you just glanced at the headline numbers from Elevance Health (ELV), a solid beat on revenue and a bigger one on earnings, you’d be forgiven for thinking it was a good day. Management even raised its full-year profit forecast. But the stock told a different story, plunging 8.5% by the closing bell. What gives? The market looked straight past the beat and saw a five-alarm crisis in one of the company’s biggest divisions: Medicaid. For a current owner, the quarter puts the company’s “diversified strength” narrative to the test. For a prospective buyer, it raises a critical question: Is the damage in one core segment too deep to ignore, no matter how well the rest of the company is doing? On paper, the results looked fine. Elevance reported adjusted earnings per share of $7.45, sailing past the $6.27 consensus estimate. The company felt confident enough to raise its 2026 adjusted diluted earnings per share guidance to “at least $27.” Other segments are pulling their weight, particularly Medicare Advantage, which is on a path to hit an operating margin of “at least 2% this year.” This is the picture management wants you to see: a well-oiled machine firing on most cylinders. But the market is fixated on the cylinder that has completely seized. The company’s full-year Medicaid operating margin outlook remains a stunningly negative “-1.75%.” More concerning than the loss itself is its stubbornness. Management noted that rate updates from states were actually coming in better than expected, which should have provided some relief. Yet, the forecast didn’t budge. As one analyst on the call essentially asked, “Why isn't there a lift if rates are coming in better?” The silence on that front was deafening, suggesting underlying cost pressures are either worse than acknowledged or simply not under control. When you can’t fix a problem, you get away from it. Elevance announced it “reached a mutual agreement with the District of Columbia to exit the D.C. Medicaid market.” More alarmingly, that’s not a one-off. Management stated they “expect to exit additional Medicaid markets over the next 12-18 months where we do not see a path to sustainable performance.” This action goes beyond trimming the edges, representing a strategic...

Elevance Health raised its profit forecast and the stock promptly fell. Here’s the one number that explains why investors headed for the exits. On paper, Wednesday looked like a victory lap for Elevance Health (ELV). The company beat second-quarter earnings estimates and raised its full-year profit guidance. You’d normally expect a stock to rally on that kind of news. Instead, shares of ELV dropped 8.5% in a single session, badly lagging peers and the broader market. So what gives? Investors looked straight past the good news and fixated on a single, deeply troubled part of the business: Medicaid. What’s So Wrong With the Medicaid Business? While other segments performed well, management revealed a jarring forecast for its government program for lower-income Americans. The company is holding to its full-year Medicaid operating margin outlook of approximately -1.75%, meaning they expect to lose money on every dollar of revenue from a large part of their portfolio. Management called 2026 the “trough year for our Medicaid margin,” but the market wasn’t in a patient mood. How Bad Is It, Really? Bad enough that the company is starting to walk away. Elevance announced it had reached a “mutual agreement” to exit the D.C. Medicaid market. More pointedly, management stated they “expect to exit additional Medicaid markets over the next 12-18 months where we do not see a path to sustainable performance.” When a company starts shrinking a core business because it can’t find a way to make it profitable, investors get nervous. It signals the problems go beyond a temporary blip in costs to a more fundamental issue with state reimbursement rates and the viability of the business itself. But Didn’t Management Say Rates Were Improving? They did, and that’s the crux of the market’s skepticism. On the earnings call, analysts repeatedly tried to square the circle. One asked why, if state reimbursement rates are getting better, the company isn’t improving its negative margin outlook and is instead talking more about exiting states. The lack of a satisfying answer left a cloud over the entire report. The beat and raise in other areas, like Medicare Advantage, simply wasn't enough to offset the red flags waving over the Medicaid segment. Is this truly the bottom for Elevance’s Medicaid woes, or is shrinking the business the only path back to profitability? What Does The Options Mar...

The healthcare giant posts better-than-expected second-quarter earnings and hikes its full-year guidance.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Centene’s updated price target framework now reflects a fair value revision from US$61.83 to US$63.78, a modest uplift that has caught investor attention. Research commentary links this shift to a more constructive view on Centene’s earnings power, supported by trends in exchanges, Medicare Advantage, and early signs of Medicaid margin recovery, while still pointing out execution and policy risks. As you read on, you will see how this evolving analyst narrative may matter for your own view of the stock and how to keep track of future updates. Stay updated as the Fair Value for Centene shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Centene. BofA, Barclays, Truist, Deutsche Bank and others have raised Centene price targets into a US$70 to US$80 range. They point to views that Medicaid and Marketplace margins, risk adjustment receipts, and medical cost trends can support stronger earnings power over time. Several firms, including Truist and BofA, describe constructive sector tailwinds, such as AI and technology adoption and muted cost trends in Q2. They see Centene as well positioned alongside other managed care companies within Healthcare Services. Baird highlights that recent healthcare exchange risk adjustment data looks favorable for Centene relative to certain peers, which analysts see as consistent with earlier company commentary on Marketplace performance. RBC Capital and Barclays describe early evidence of recovery and margin improvement for Centene and view recent moves in managed care stocks, including Centene, as supported by a more stable policy backdrop and payor strength. Wells Fargo, Mizuho, Morgan Stanley, UBS and TD Cowen keep more neutral or equal weight style ratings alongside higher targets. They point to ongoing uncertainty around Medicaid performance, policy risk, and execution on cost actions despite healthier Exchange and Medicare Advantage trends. Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives! We've flagged 1 risk for Centene. See which could impact your investment. Fair Value...

UnitedHealth Group crushed Q2 earnings forecasts amid lower-than-expected benefit costs, sending the Dow Jones stock surging past a buy point on Thursday morning. Rival managed-care providers including Humana, Centene and Elevance Health got a sizable lift from the initial warm reception for UnitedHealth's earnings report. Results: UnitedHealth posted Q2 earnings per share of $6.38, up 56% from a weak year-earlier result and 30% ahead of $4.91 forecasts.

Investing.com -- Elevance Health’s Health Benefits operating profit collapsed in the second quarter of 2026, igniting a broad premarket selloff across the managed-care sector even as the insurer’s headline earnings handily beat estimates and full-year guidance was lifted. Elevance shares are down 6.7% in premarket trade Thursday after the report showed adjusted operating margin fell to 3.6% from 5.0% year-over-year. UnitedHealth Group, which reports its own Q2 results Thursday, saw its shares fall 2.7% in premarket trading, with investors bracing that Elevance’s Medicaid margin deterioration may prove sector-wide rather than company-specific. Molina Healthcare, a pure-play Medicaid insurer, dropped as much as 9% in premarket — the steepest decline among major sector peers — bringing it sharply back from its 52-week high of $244.89 reached as recently as Tuesday’s session. Humana declined roughly 1.7% in premarket, while Centene and CVS Health fell 4.9% and 2.3%, respectively. Elevance posted Q2 2026 revenue of $50.47 billion, up 2.1% year-on-year and beating analyst consensus by 3.9%, while adjusted EPS of $7.45 came in roughly 20% above the $6.21 consensus estimate. Full-year adjusted EPS guidance was raised to at least $27.00. On the surface, those numbers look strong. Beneath them, the picture is considerably more troubling. The headline EPS figure was materially supported by an $0.80 per-share below-the-line benefit that flattered the reported result. Strip that out, and the core insurance business is under significant pressure. The Health Benefits segment, Elevance’s largest, saw operating profit fall nearly half versus the prior year as lagging Medicaid reimbursement rates and an ongoing Medicare Advantage portfolio repositioning squeezed margins. Management had previously guided investors to treat 2026 as a "trough year" for the segment, and the Q2 data validates that warning. With Elevance’s non-recurring below-the-line support and front-loaded profitability, consensus implies a steep deceleration in core earnings power through the second half. Sell-side analysts project revenue to decline 2.3% over the next 12 months, a sharp contrast to the revenue growth posted in Q2. Membership has also been gradually contracting, with the customer base slipping to 44.95 million in Q2 from 45.42 million the prior quarter, even as revenue per member has risen. Pri...

Elevance Health beat estimates for earnings and medical cost ratio, but that wasn’t enough to outweigh concerns about high Medicaid spending.

After a rocky start to the year, health insurer stocks have roared back. The insurers are trying to end a difficult cycle that began about three years ago, when healthcare use, and the costs to cover it, accelerated postpandemic. The fund’s top 10 holdings encompass six health insurers, three of which— UnitedHealth Group Aetna parent CVS Health and Elevance Health —comprise more than 40% of the fund.

ST. LOUIS, July 10, 2026 /PRNewswire/ -- Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, shared today that it will release its 2026 second quarter financial results at approximately 6:00 a.m. ET on Tuesday, July 28, 2026, and host a conference call at 8:30 a.m. ET to review the results. Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 (toll free) in the U.S. and Canada; +1-412-902-6506 (toll) from abroad, including the following Elite Entry Number: 4306002 to expedite caller registration; or via a live, audio webcast on the Company's website at www.centene.com, under the Investors section. A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months or until 11:59 p.m. ET on Tuesday, July 27, 2027, at the aforementioned URL. In addition, a digital audio playback will be available until 9 a.m. ET on Tuesday, August 4, 2026, by dialing 1-855-669-9658 (toll free) in North America, or +1-412-317-0088 (toll) from abroad, and entering access code 6500508. About Centene CorporationCentene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace. Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, http://investors.centene.com/. View original content to download multimedia:https://www.prnewswire.com/news-releases/centene-corporation-to-host-2026-second-quarter-financial-results-earnings-call-302822779.html

Saint Louis, Missouri-based Centene Corporation (CNC) operates as a healthcare enterprise that provides programs and services to underinsured and uninsured families and commercial organizations in the United States. The company has a market capitalization of $33.8 billion and operates through Medicaid, Medicare, Commercial, and Other segments. CNC is expected to release its Q2 2026 earnings on Tuesday, July 28, before the market opens. Ahead of the event, analysts expect the company’s EPS to be $0.89 on a diluted basis, up 656.3% from a loss per share of $0.16 in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of its last four quarters, while missing on one occasion. SanDisk Slumps 10% But BofA Stays Bullish. Here Is How to Play SanDisk Stock Here. 1 High-Probability Iron Condor Trade on Broadcom Stock to Make Now with 29% Return Potential Nasdaq Futures Slip as Chip Stocks Extend Slide, U.S. Jobs Report in Focus Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2026, analysts project the company’s EPS to be $3.44, up 65.4% from $2.08 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 28.2% year over year (YoY) to $4.41 in fiscal 2027. CNC stock has risen 100.9% over the past 52 weeks, rallying the S&P 500 Index’s ($SPX) 20.2% rise and the State Street Healthcare Select Sector SPDR ETF’s (XLV) 21% rise during the same time frame. On Apr. 28, CNC stock rose 14% following the release of its Q1 2026 earnings. The company’s revenue for the quarter amounted to $49.9 billion and surpassed the Street’s estimates. Moreover, its adjusted EPS came in at $3.37, also coming in on top of Wall Street’s forecasts. Centene expects full-year revenue in the range of $187.5 billion to $191.5 billion. Analysts are moderately bullish about CNC, with the stock having a “Moderate Buy” rating overall. Among the 21 analysts covering the stock, seven are recommending a “Strong Buy,” 13 suggest a “Hold,” and one suggests a “Strong Sell.” CNC’s average analyst price target of $61.83 is below the current price, but its Street-high target of $80 implies 17.9% upside. On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities...

Centers for Medicare & Medicaid Services released the final 2025 numbers for its risk adjustment program on Tuesday. For Molina, the firm sees a minor negative impact. Baird estimates that Molina faces an additional $11.2 million in payments beyond what it had already set aside. Shares of Centene (CNC) and Oscar Health (OSCR) closed 6% and 12% higher, respectively, on Wednesday following a note from Baird that the latest government risk adjustment settlement came in better than expected for both companies. Baird said the outcomes from the final 2025 healthcare exchange risk adjustment transfers support Centene’s prior Q4 commentary and align directionally with Oscar’s comments at a June investor conference. For Molina, the firm sees only a minor negative impact. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Shares of Molina (MOH) closed 2% higher on Wednesday. On June 30, the Centers for Medicare & Medicaid Services released the final 2025 numbers for its risk adjustment program. This program shifts money between health insurers in the individual market. Insurers whose customers are sicker than average receive payments from those whose customers are healthier and these payouts can swing insurers’ earnings. The June 30 report gave the final settlement using complete yearly data. Baird estimates that Molina faces an additional $11.2 million in payments beyond what it had already set aside. As for Centene, the company had already taken a large negative adjustment earlier in 2025 based on preliminary data, revising its expected headwind to roughly $2.4 billion pretax for the full year. Oscar, meanwhile, increased its risk adjustment payable accrual by about $275 million because its members appeared healthier than the broader market average in its Q4 2025 earnings. On Stocktwits, retail sentiment around CNC, MOH, and OSCR stayed within the ‘neutral’ territory at the time of writing. According to data from Koyfin, CNC has a 12-month average price target of $61.83, representing a potential downside of about 10% from the last closing price, while OSCR has an average price target of $22.60, implying a potential downside of 29%. While CNC has gained 66% year-to-date, OSCR has added 122%. Read More: TMDX Stock Rallies As Analyst Sees 77% Upside — Here’s Why For updates and corrections,...

Centene Corporation's CNC integrated healthcare model is supporting its earnings potential by combining government-sponsored health plans with coordinated clinical services, pharmacy benefits and community-based care. This approach helps the company to manage medical costs more effectively while improving health outcomes across Medicaid, Medicare and Commercial members. As of March 31, 2026, Centene served 26.3 million members, giving the company significant scale to spread administrative costs and support operating leverage. Centene is also sharpening its operational capabilities through technology and data-driven initiatives. It expanded the use of advanced analytics and selective AI-enabled tools across medical economics, forecasting, fraud detection and payment integrity. These initiatives are helping identify emerging healthcare trends earlier, strengthen claims oversight and improve pricing decisions. In Medicare, the company continues to simplify provider contracts and expand value-based care models targeting high-cost specialties, supporting better quality and lower total cost of care. In the first quarter of 2026, adjusted earnings per share increased 16.2% year over year to $3.37, while premium and service revenues rose 5.1%. Medicaid's health benefits ratio improved 50 bps year over year to 93.1%, reflecting the impact of better reimbursement, disciplined medical cost management and ongoing operational improvements. Encouraged by the strong start, Centene raised its 2026 adjusted EPS guidance to more than $3.40. However, regulatory changes and medical cost trends remain key challenges. CNC's integrated approach is creating a stronger operating foundation. Continued investments in technology, clinical programs and provider partnerships should support margin recovery and position the company for sustainable earnings growth over the long term. Some of CNC’s major competitors in the value-based care space are UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV. UnitedHealth continues to strengthen its integrated healthcare platform by combining UnitedHealthcare's insurance operations with Optum's pharmacy, care delivery and health services businesses. This connected model enhances care coordination, improves operational efficiency and supports UNH’s long-term earnings growth through diversified revenue streams. Elevance Health is expandi...