A month has gone by since the last earnings report for Centene (CNC Quick QuoteCNC - Free Report) . Shares have added about 9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Centene due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Centene Corporation before we dive into how investors and analysts have reacted as of late.

Centene Q1 Earnings Beat Estimates on Rising Premiums, 2026 View Up

Centene reported first-quarter 2026 adjusted earnings per share (EPS) of $3.37, which surpassed the Zacks Consensus Estimate by 80.2%. Moreover, the bottom line climbed 16.2% year over year.

Revenues totaled $49.9 billion, which rose 7.1% year over year. The top line surpassed the consensus mark by 5.2%.

The strong quarterly results benefited from solid revenue growth, driven by strong premium revenues in Medicaid and Medicare businesses, particularly from increased premiums and membership in the PDP business. However, the upside was partly offset by a decline in total membership and an increase in medical costs.

Quarterly Operational Update of CNC

Revenues from Medicaid advanced 6% year over year to $23.6 billion, while Medicare revenues of $10.3 billion rose 18% in the quarter under review. Meanwhile, commercial revenues came in at $9.6 billion, down 6% year over year.

Centene's premium of $43.9 billion grew 5.2% year over year on the back of higher premiums, membership in the PDP business and strength in the Medicaid rate hikes. The metric beat the Zacks Consensus Estimate of $42.6 billion.

Service revenues slid 1.2% year over year to $768 million in the first quarter, but surpassed the consensus mark of $693.4 million. Investment and other income of $407 million improved 6.5% year over year and topped the Zacks Consensus Estimate of $349.3 million.

Total membership was 26.3 million as of March 31, 2026, which decreased 6% year over year due to membership declines in the Medicaid, Marketplace and Medicare businesses. However, the metric beat the consensus mark of 25.9 million.

Centene’s health benefits ratio improved 20 basis points year over year to 87.3% in the quarter under review. Operating expenses totaled $48.1 billion, which increased 6.6% year over year due to higher medical costs, selling, general and administrative expenses, and premium tax expense. Medical costs escalated 4.9% year over year.

Adjusted net earnings were recorded at $1.7 billion compared with the year-ago figure of $1.4 billion.

CNC’s Q1 Financial Update (As of March 31, 2026)

Centene exited the first quarter with cash and cash equivalents of $21.3 billion, which rose 18.9% from the 2025-end level. Total assets of $81.2 billion grew 5.8% from the figure at 2025-end.

Long-term debt amounted to $16.3 billion, down 6% from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $63 million.

Total stockholders’ equity of $21.5 billion increased 7.3% from the 2025-end figure.

Centene generated $4.4 billion of net cash from operations in the first quarter of 2026, which increased from the prior-year comparable period’s $1.5 billion.

CNC’s Revised 2026 Guidance

Management now anticipates premium and service revenues within the band of $171-$175 billion for 2026, up from the previous guidance range of $170-$174 billion. The midpoint of which indicates a decline of 0.9% from the 2025 reported figure.

Revenues are now estimated between $187.5 billion and $191.5 billion, up from the previously projected band of $186.5 billion-$190.5 billion, the midpoint of which implies 2.7% fall from the 2025 figure.

Adjusted EPS is now expected to be greater than $3.40, higher than the previously projected figure of $3.00, which indicates a 63.5% surge from the 2025 figure. GAAP EPS is now forecasted to remain greater than $2.37.

Health benefits ratio is still estimated to be in the band of 90.9-91.7% for 2026, while the adjusted SG&A expense ratio is now expected to be 7-7.6%. The adjusted effective tax rate is still anticipated to be in the range of 26-27%.

Shares outstanding are still anticipated to be between 495.6 million and 498.6 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -18.28% due to these changes.

VGM Scores

At this time, Centene has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Centene has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Centene is part of the Zacks Medical - HMOs industry. Over the past month, UnitedHealth Group (UNH Quick QuoteUNH - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended March 2026 more than a month ago.

UnitedHealth reported revenues of $111.72 billion in the last reported quarter, representing a year-over-year change of +2%. EPS of $7.23 for the same period compares with $7.20 a year ago.

UnitedHealth is expected to post earnings of $4.84 per share for the current quarter, representing a year-over-year change of +18.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for UnitedHealth. Also, the stock has a VGM Score of B.