NYSE: CNC · Managed Health Care
Centene Corporation
Centene is a managed care company focused on government-sponsored and individual health coverage. Its 10-K describes it as the nation's largest Medicaid and Marketplace insurer and largest stand-alone Medicare Part D (PDP) provider. Membership was 27.6 million at year-end 2025. FY2025 revenue rose 19% to $194.8 billion, but Centene lost $6.67 billion after a $6.7 billion goodwill impairment, as Medicaid and Marketplace margins fell and new federal law (OBBBA) and the end of enhanced Marketplace subsidies clouded the outlook. In 2026 it raised its earnings guidance as Marketplace pricing actions took hold.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Built on10-K FY2025 · filed 2026-02-1710-Q (quarter ended 2026-09-30) · filed 2026-10-27
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 11.9%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- -3.9%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -19.3 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- —
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- —
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 24.1x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.60
Higher than 71% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 3% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 1% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Below 0 means more cash than debt
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$71.68close on 2026-11-04
Market cap$35.25B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 24.1x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 1.8x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- —
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 12.3%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2025 year-end: —
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 1.0x
Book value at FY2025 year-end
At FY2025 year-end: —
EBITDA for FY2025
At FY2025 year-end: 21.4%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$49.69B → $50.65B (vs. a year earlier)↑ +1.9%$49.69B → $50.65B (vs. a year earlier)
- Operating margin-14.0% → -0.6% (vs. a year earlier)↑ +13.4 pts-14.0% → -0.6% (vs. a year earlier)
- Net income−$6.63B → −$71M (vs. a year earlier)↑ −$71M−$6.63B → −$71M (vs. a year earlier)
- Diluted EPS$-13.50 → $-0.14 (vs. a year earlier)↑ $-0.14$-13.50 → $-0.14 (vs. a year earlier)
- Cash$24.15B → $20.7B (vs. previous quarter-end)↓ −14.3%$24.15B → $20.7B (vs. previous quarter-end)
- Long-term debt$16.11B → $15.54B (vs. previous quarter-end)↓ −3.5%$16.11B → $15.54B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 27, 2026.
Management outlook ↑ Raised
Raised 2026 adjusted EPS guidance by $0.40. Source sentence
Increases 2026 full year adjusted diluted EPS guidance by $0.40.
Key changes
Premium and service revenues up 0.5% to $45.1B. Source sentence
For the third quarter of 2026, premium and service revenues increased 0.5% to $45.1 billion from $44.9 billion in the comparable period of 2025.
Health benefits ratio 92.7%. Source sentence
Consolidated HBR of 92.7% in the third quarter, better than expectations, driven by the Medicare segment, with Medicaid and Marketplace on track.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- CENTENE CORP
- Headquarters
- ST LOUIS, MO
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: CNC
- Industry
- Managed Health Care
- CIK
- 1071739
- Website
- https://www.centene.com/ ↗
Workforce (as of FY2025 year-end)
Employees
61,100
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 35–37 days after quarter end (Feb 6, 2026; Feb 4, 2025; Feb 6, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 25–37 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 27, 2026 (+27 days) | Oct 27, 2026 10-Q (+27 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 28, 2026 (+28 days) | Jul 28, 2026 10-Q (+28 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 28, 2026 (+28 days) | Apr 28, 2026 10-Q (+28 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 6, 2026 (+37 days) | Feb 17, 2026 10-K (+48 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Oct 29, 2025 10-Q (+29 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 25, 2025 (+25 days) | Jul 25, 2025 10-Q (+25 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 25, 2025 (+25 days) | Apr 25, 2025 10-Q (+25 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 4, 2025 (+35 days) | Feb 18, 2025 10-K (+49 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 25, 2024 (+25 days) | Oct 25, 2024 10-Q (+25 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 26, 2024 (+26 days) | Jul 26, 2024 10-Q (+26 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 26, 2024 (+26 days) | Apr 26, 2024 10-Q (+26 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 6, 2024 (+37 days) | Feb 20, 2024 10-K (+51 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Medicaid
State Medicaid plans
Examples: TANF, CHIP, long-term services and supports
Under state contracts.
Medicare
Wellcare Medicare Advantage and PDP
Examples: D-SNP plans, stand-alone Part D
Medicare products.
Commercial
Ambetter Health
Examples: Health Insurance Marketplace plans
Served members in 29 states in 2025.
Descriptions are from the FY2025 Form 10-K's Item 1.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Medicaid managed care
U.S. Medicaid insurers, by membership
U.S. share
Largest
Company-disclosed12.5 million Medicaid members in 30 states at December 31, 2025.
Worldwide share
—
Not disclosedHealth Insurance Marketplace plans
U.S. Marketplace insurers, by membership
U.S. share
Largest
Company-disclosedWorldwide share
—
Not disclosedStand-alone Medicare prescription drug plans (PDP)
U.S. stand-alone PDP providers
U.S. share
Largest
Company-disclosedWorldwide share
—
Not disclosed
Sources:
Based on the most recent publicly available membership data, per the 10-K.
07
Recent strategic focusSite analysis
Turnaround in 2026, from 8-Ks.
Raised guidance again
Q3 2026 revenue was $50.6B, GAAP diluted EPS −$0.14 and adjusted EPS $0.58; operating cash flow was −$3.7B. Centene raised 2026 GAAP EPS guidance to more than $3.46 and adjusted EPS to more than $5.20, citing a better-than-expected Medicare HBR.
Source: 8-K filed 2026-10-27 (Exhibit 99.1)
Debt reduction
Centene redeemed $500M of its 2027 notes in August 2026 and the remaining $569M in October, cutting debt by $1.1B since June 30; debt-to-capital fell to 41.1% at September 30, 2026 from 46.5% at year-end.
Source: 8-Ks filed 2026-07-29 and 2026-10-08; 8-K filed 2026-10-27 (Exhibit 99.1); Form 10-Q (quarter ended 2026-09-30)
Leadership changes
CFO Drew Asher plans to retire at the end of 2026, with Christopher Neczypor named as successor; new group presidents lead Medicaid/Marketplace and Medicare/Specialty.
Source: 8-Ks filed 2026-05-15 and 2026-08-17
Capex ÷ D&A (FY2025)
0.60x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$767M ÷ $1,275M = 0.60x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$6.04B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $869M in FY2020 to $767M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$194.78B
As reported in the 10-K
Revenue CAGR (5 years)
+11.9%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($194,777M ÷ $111,115M) ^ (1÷5) − 1 = 11.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
-3.9%▼caution
-6.7pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$-7,623M ÷ $194,777M × 100 = -3.9%
ROE (FY2025)
-28.8%▼caution
6-year average: 1.9%
As reported in the 10-K
P/B (FY2025 end)
1.01x
formulafiscal year-end closing price ÷ book value per share
e.g.$41.15 ÷ $40.57 = 1.01x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
—
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +11.9% a year over 5 years (strong growth)
From $111.12B in FY2020 to $194.78B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 2.8% → -3.9%
How much operating profit is left per $100 of revenue. It moved -6.7 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 26.0% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ―
Free cash flow was positive in 5 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▼
ROE averaged 1.9% over 6 years (latest: -28.8%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
Medicaid
Managing members' care and paying claimsMedicare
Managing benefitsCommercial
Selling and administering individual plansOther
Services
06 · what it draws on
Key resources
Medicaid
State contracts won through procurements- Provider networks
Medicare
CMS contracts- Pharmacy and provider networks
Commercial
Broker distribution- Provider networks
Other
Specialty capabilities
02 · why customers buy
Value propositions
- Government-sponsored health coverage; Centene believes its scale, diversified offerings, strong provider relationships and local, collaborative approach help it compete.
04 · how it keeps them
Customer relationships
- Members enrolled under state contracts and annual plan enrollment.
03 · how it reaches them
Channels
- Contracts with state Medicaid agencies and CMS; Ambetter Marketplace plans sold to individuals, including ICHRA plans offered in 13 states in 2026.
01 · who it serves
Customer segments
Medicaid
State Medicaid agencies (12.5M members)Medicare
1.0M MA members and 8.1M PDP membersCommercial
5.5M Marketplace membersOther
Health plans and government
09 · where money goes
Cost structure
FY2025, share of revenue ($194.78B)
- Cost of revenue1.4%
- Selling, general & administrative6.6%
- Other operating costs95.9%
Revenue here is reported net of interest expense, so these lines overlap and add up to more than 100%.
Operating profit left: -3.9% of revenue. Depreciation & amortization (inside the costs above): $1.28B. Capital spending: $767M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
Medicaid
Capitated premiums per memberMedicare
Premiums from CMS and membersCommercial
Premiums, including federal subsidiesOther
Service revenue
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Medicaid
Managed care for Medicaid, CHIP, long-term services, and dual-eligible members under contracts with state governments.
01 what it draws on
Inputs & resources
- State contracts won through procurements
- Provider networks
02 what it does
Activities
- Managing members' care and paying claims
03 who it serves
Customers
- State Medicaid agencies (12.5M members)
04 how money comes in
How it earns
- Capitated premiums per member
Medicaid: how it makes money
- Revenue $110.4B (+9%) and gross margin $5.69B (−9%) in FY2025; membership fell to 12.5M from 13.0M after redeterminations.
Medicare
Medicare Advantage (including many dual-eligible D-SNP members) and stand-alone prescription drug plans.
01 what it draws on
Inputs & resources
- CMS contracts
- Pharmacy and provider networks
02 what it does
Activities
- Managing benefits
03 who it serves
Customers
- 1.0M MA members and 8.1M PDP members
04 how money comes in
How it earns
- Premiums from CMS and members
Medicare: how it makes money
- Revenue $37.2B (+62%) and gross margin $2.98B in FY2025.
Commercial
Health Insurance Marketplace plans (Ambetter Health) and individual and group coverage.
01 what it draws on
Inputs & resources
- Broker distribution
- Provider networks
02 what it does
Activities
- Selling and administering individual plans
03 who it serves
Customers
- 5.5M Marketplace members
04 how money comes in
How it earns
- Premiums, including federal subsidies
Commercial: how it makes money
- Revenue $42.0B (+25%) but gross margin $5.10B (−33%) in FY2025 as market morbidity rose.
Other
Specialty services and other businesses, including the remaining Magellan operations.
01 what it draws on
Inputs & resources
- Specialty capabilities
02 what it does
Activities
- Services
03 who it serves
Customers
- Health plans and government
04 how money comes in
How it earns
- Service revenue
Other: how it makes money
- Revenue $5.1B in FY2025.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Centene’s revenue is driven by Medicaid, Medicare and Marketplace programs and their rules.
Government as customer
Government programs and contracts
CMS rules on Medicare–Medicaid integrated care and the IRA’s Part D redesign affect its plans.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Regulated prices & reimbursement
Medicare Part D redesign
The IRA significantly changed Medicare Part D.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Medicaid
110,434 (57%)profit 5,690 · margin 5.2%
Medicare
37,210 (19%)profit 2,983 · margin 8.0%
Commercial
42,003 (22%)profit 5,101 · margin 12.1%
Other
5,130 (3%)profit 435 · margin 8.5%
Source: Form 10-K (FY2025) — MD&A, segment results Profit is gross margin (premium and service revenues less medical costs and cost of services), before SG&A, impairments, interest, and taxes.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Most revenue is premiums under government contracts (state Medicaid, CMS for Medicare) and subsidized Marketplace plans, so profits depend on rates set or approved by governments and on medical cost trends.
Membership
27.6M at-risk members at year-end 2025
Medicaid 12.5M, Marketplace 5.5M, Medicare Advantage 1.0M, PDP 8.1M.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
State Medicaid agencies, the federal government (CMS), and individuals in the Marketplace.
Named by the company
No customer is named.
Suppliers
Hospitals, physicians, pharmacies, and other providers in its networks.
Named by the company
None named in the 10-K or the company’s press releases.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Centene's 10-K says it competes with managed care organizations, specialty providers, and emerging non-traditional entrants for government contracts and members, without naming them; its proxy lists managed care direct competitors in its peer group.
Competitors named in the 10-K
Centene's 10-K doesn't name competitors.
Peer group the company chose
2025 Healthcare Industry peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Managed care direct competitors, healthcare distributors, services and drug retail, facilities, and insurance; Walgreens drops out going forward.
- The Cigna Groupsite ↗
- Elevance Healthsite ↗
- Humanasite ↗
- Molina Healthcaresite ↗
- UnitedHealth Groupsite ↗
- Cencorasite ↗
- Cardinal Healthsite ↗
- McKessonsite ↗
- CVS Healthsite ↗
- Walgreens Boots Alliancesite ↗
- HCA Healthcaresite ↗
- MetLifesite ↗
- Prudential Financialsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 111,115 | 125,982 | 144,547 | 153,999 | 163,071 | 194,777 |
| Operating income | 3,082 | 1,784 | 1,318 | 2,930 | 3,175 | -7,623 |
| Pretax income | 2,773 | 1,813 | 1,962 | 3,598 | 4,257 | -6,728 |
| Net income (attributable) | 1,808 | 1,347 | 1,202 | 2,702 | 3,305 | -6,674 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 13.4% | 14.7% | 6.5% | 5.9% | 19.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 2.8% | 1.4% | 0.9% | 1.9% | 1.9% | -3.9% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 1.6% | 1.1% | 0.8% | 1.8% | 2.0% | -3.4% |
| Balance sheet ($M) | ||||||
| Total assets | 68,719 | 78,375 | 76,870 | 84,641 | 82,445 | 76,747 |
| Total equity | 25,885 | 26,940 | 24,181 | 25,937 | 26,500 | 20,033 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 16,880 | 19,026 | 18,179 | 17,962 | 18,640 | 17,493 |
| Equity ratio | 37.5% | 34.2% | 31.3% | 30.5% | 32.0% | 26.0% |
| ROE | 7.0% | 5.1% | 4.7% | 10.8% | 12.7% | -28.8% |
| Cash flow ($M) | ||||||
| Operating CF | 5,503 | 4,205 | 6,261 | 8,053 | 154 | 5,088 |
| Investing CF | -6,955 | -3,299 | -2,921 | -1,191 | -1,052 | 472 |
| Financing CF | 260 | 1,362 | -4,197 | -1,658 | -2,406 | -1,621 |
| Free cash flowcalccash flow from operations − capital expenditures | 4,634 | 3,295 | 5,257 | 7,254 | -490 | 4,321 |
| Cash and equivalents | 10,800 | 13,118 | 12,074 | 17,193 | 14,063 | 17,888 |
| Per share & other | ||||||
| EPS ($) | 3.12 | 2.28 | 2.07 | 4.95 | 6.31 | -13.53 |
| BVPS ($) | 44.32 | 46.00 | 43.68 | 48.35 | 53.26 | 40.57 |
| P/E (x) | 19.2 | 36.1 | 39.6 | 15.0 | 9.6 | — |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 9.4 | 17.3 | 18.7 | 9.6 | 7.8 | — |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 1.35 | 1.79 | 1.88 | 1.53 | 1.14 | 1.01 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $50.65B+1.9% | −$307M | −$71M | $-0.14 |
| 2026-06-30 | $53.58B+9.9% | $1.2B | $1.09B | $2.19 |
| 2026-03-31 | $49.94B+7.1% | $1.86B+21.3% | $1.54B+17.5% | $3.11 |
| 2025-12-31 † | $49.73B+21.9% | −$1.75B-1097.1% | −$1.1B-489.0% | — |
| 2025-09-30 | $49.69B | −$6.95B | −$6.63B | $-13.50 |
| 2025-06-30 | $48.74B | −$458M | −$253M | $-0.51 |
| 2025-03-31 | $46.62B | $1.53B | $1.31B | $2.63 |
| 2024-12-31 † | $40.81B | $175M | $283M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
-13.6%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$-7,623M × (1 − 26.5%) ÷ $41,333M × 100 = -13.6%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
5.75%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $20.24B ÷ ($20.24B + $17.49B) = 53.6%
e.g.Debt weight: $17.49B ÷ ($20.24B + $17.49B) = 46.4%
e.g.WACC: 8.3% × 53.6% + 3.9% × (1 − 26.5%) × 46.4% = 5.75%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 4.9%–6.8% and ROIC − WACC runs −20.3 to −18.5 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 5.75% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.60 (price-derived adjusted beta, but correlation with the market is low (R² 0.01), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.25%
- Cost of debt
- 3.88%
- Tax rate
- 26.5% (effective rate, FY2022–FY2024)
- Capital structure (equity : debt)
- 54% : 46%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 5.75%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.59 (price-derived adjusted beta. Raw β 0.40, R² 0.01, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.395 + 0.33 = 0.595
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.6 × 5.5% = 8.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
-7.6%
Perpetual FCF growth: g = r − FCF ÷ EV = 5.7% − 13.3%
Past FCF growth (FY2020–FY2025)
-1.4%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+11.9%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $4.32B (operating CF − capex); enterprise value $32.42B = market cap $35.25B (latest close, 2026-11-04) + debt $17.49B − cash and short-term investments $20.32B; r = WACC of 5.7% using this page’s default assumptions (β 0.60, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$32.49B
FCF $4.32B ÷ (5.7% − -7.6%)
Theoretical ÷ actual enterprise value
1.00x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 3.7% | 4.7% | 5.7% | 6.7% | 7.7% |
|---|---|---|---|---|---|
| 0% | 3.60x | 2.84x | 2.34x | 1.99x | 1.73x |
| 2% | 7.84x | 4.94x | 3.60x | 2.84x | 2.34x |
| 4% | — | 19.04x | 7.84x | 4.94x | 3.60x |
| 6% | — | — | — | 19.04x | 7.84x |
| 8% | — | — | — | — | — |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
16
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.88x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -14.8%
A small share of profit rests on accounting estimates.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 98.8%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 1.2%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 74 of 416
- Beta (adjusted)
- 0.60
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 18% of covered companies have more
above 1 = swings more than the market
- 487.9M shares reported by 1,004 13F filers ÷ 494.0M shares outstanding on 2026-07-24. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-26 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-24)
18
Strengths & weaknessesSite analysis
Strengths
1. Scale in government programs
Its 10-K describes Centene as the largest Medicaid and Marketplace insurer and largest stand-alone PDP provider, with 27.6M members.
Evidence: Form 10-K (FY2025) Item 1
2. Recovery in 2026
Full-year 2026 GAAP EPS guidance rose from more than $1.98 (March) to more than $3.11 (July) and more than $3.46 (October), with adjusted EPS guidance above $5.20; Q3 2026 consolidated HBR of 92.7% beat expectations.
Evidence: 8-Ks filed 2026-07-28 and 2026-10-27 (Exhibit 99.1)
3. Cash generation
Operating cash flow was $5.1B in 2025 despite the net loss; cash was $17.9B at year-end.
Evidence: Form 10-K (FY2025) Item 1; SEC EDGAR XBRL
Weaknesses
1. Large 2025 loss
A $6.7B goodwill impairment and a $513M Magellan impairment led to a net loss of $6.67B (−$13.53 per share).
Evidence: Form 10-K (FY2025) MD&A
2. Thin margins
Gross margin fell to $14.2B (7.3% of revenue) in 2025 from $17.1B; Q2 2026 Medicaid HBR was 93.9%.
Evidence: Form 10-K (FY2025) MD&A; 8-K filed 2026-07-28
3. Policy dependence
OBBBA (July 2025) may reduce Medicaid eligibility through work requirements and more frequent redeterminations, and enhanced Marketplace subsidies were not renewed.
Evidence: Form 10-K (FY2025) Item 1 and Note 7
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
—
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
21.4%
(Operating CF − capex) ÷ market cap
1. Earnings recovery
2026 guidance implies a return to profit after the 2025 loss.
- What has to hold
- Marketplace repricing and Medicaid rate updates hold.
- The other side
- About $0.50 of the guidance raise came from non-recurring items.
Evidence: 8-K filed 2026-07-28
2. Share count reduction
Shares outstanding fell from 582M (2021) to 492M (2025).
- What has to hold
- Cash flow supports buybacks.
- The other side
- Only $400M of stock was repurchased in 2025.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) Item 5
P/E isn't meaningful for FY2025 because of the net loss. Centene pays no dividend.
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
100x+
$20.32B vs. $50M
Interest coverage (operating income ÷ interest expense)
-11.2x
−$7.62B vs. $678M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -340.1% in FY2025 ($3.18B → −$7.62B) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Liquidity
$17.9B of cash and equivalents at year-end 2025, much of it held by regulated subsidiaries.
Source: SEC EDGAR XBRL
Diversification
Revenue across Medicaid, Medicare, and Commercial.
Source: Form 10-K (FY2025)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Centene is defending a securities class action and five derivative suits filed after it withdrew its 2025 earnings guidance, along with routine regulatory reviews of a large government-program insurer.
1 open matter
Securities class action and derivative suits over 2025 guidance
PendingClass actionBrock Lunstrum v. Centene Corp. (S.D.N.Y.); five derivative actions (S.D.N.Y., E.D. Mo., D. Del.)
Filed from July 2025, alleging false and misleading statements about Centene's 2025 earnings guidance and related fiduciary breaches by directors and officers.
- Amounts
- Accruals for legal and regulatory matters were not material.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Company statement: Except for these suits, Centene believes pending matters should not have a material adverse effect.
Based on Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Government program changes
- Company disclosure (summarized from the 10-K)
- Medicaid eligibility changes, Marketplace subsidy expiration, and CMS rate and Star rating decisions directly affect membership and margins.
- Company’s stated mitigation
- Corrective 2026 Marketplace pricing in states covering 95% of membership; advocacy for coverage and affordability.
- This site’s assessment
- Impact High / Likelihood High
- 2Costs & inflation
Medical cost trend
- Company disclosure (summarized from the 10-K)
- Unanticipated increases in healthcare costs, including from inflation and tariffs, compress margins.
- Company’s stated mitigation
- Management of medical cost trend; the 2026 HBR midpoint was improved to 90.75% in October 2026.
- This site’s assessment
- Impact High / Likelihood Med
- 3Competition & technology shift
Contract reprocurements
- Company disclosure (summarized from the 10-K)
- Centene competes with other MCOs, specialty providers, and new entrants for state contracts and members.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Governance & quality
Further impairments
- Company disclosure (summarized from the 10-K)
- Centene says it may record additional goodwill and intangible impairments.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Information security
Cybersecurity
- Company disclosure (summarized from the 10-K)
- Cyber incidents at Centene or its vendors could disrupt operations and expose member data.
- Company’s stated mitigation
- Our cybersecurity risk management program is part of our enterprise-wide risk management practices.
- This site’s assessment
- Impact Med / Likelihood Med
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (6)
The Final Rule was published in the Federal Register on June 25, 2025. Read more
The Final Rule makes changes to policies to strengthen program integrity measures in the Marketplace. For example, the Special Enrollment Period for those under 150% of the FPL has been repealed beginning August 25, 2025. Several of the provisions of the Final Rule have been stayed due to ongoing litigation. These include a requirement for certain consumers who automatically re-enroll into a fully subsidized Marketplace plan to be re-enrolled into the same plan with a $5 premium until the consumer updates their exchange application to confirm APTC eligibility. Additionally, exchanges may no longer accept a consumer's self-attestation of projected annual household income when the IRS cannot verify it due to lack of tax return data; rather, exchanges must verify household income using other trusted data sources.
Extended eligibility for the Enhanced APTC for Marketplace members expired on December 31, 2025. Read more
In July 2025, the OBBBA placed additional restrictions on APTC requirements. For example, beginning January 1, 2026, should individuals mis-estimate their projected income, the OBBBA requires them to reimburse the IRS for the full amount of excess tax credit received. In addition, as of January 1, 2026, the OBBBA prohibits individuals from receiving APTCs if they enroll in health coverage through a Special Enrollment Period associated with their income. We anticipate that the combined effect of the expiration of the Enhanced APTCs, the Final Rule, and the OBBBA will reduce 2026 Marketplace membership and continue to increase the overall morbidity of the Marketplace population.
Future levels of funding and premium rates may be affected by continuing government efforts to contain healthcare costs and may further be affected by state and federal budgetary constraints and spending initiatives or changes in control of the legislative or executive branches at the state and federal level. Governments periodically consider reducing or reallocating the amount of money they spend for Medicaid, Medicare, CHIP, LTSS, ABD and Foster Care. For example, the OBBBA includes requirements that may reduce the number of members eligible for state Medicaid Expansion programs by requiring work or community engagement by members and for state Medicaid agencies to redetermine member eligibility at more frequent intervals, along with adding a "Cost Sharing" or "Co-Pay" for certain medical services. These changes could have the effect of increasing the overall morbidity of the Medicaid…
In addition, the OBBBA includes requirements that may reduce the number of members eligible for state Medicaid Expansion programs by requiring work or community engagement by members and for state Medicaid agencies to redetermine member eligibility at more frequent intervals, along with adding a "Cost Sharing" or "Co-Pay" for certain medical services. These changes could have the effect of increasing the overall morbidity of the Medicaid Expansion population largely beginning in 2027, subject to state implementation plans. Several other provisions of the OBBBA, such as adjustments to provider taxes and state directed payments beginning in 2028, may have the effect of reducing the amount of federal funding for Medicaid, which could result in changes in the design of Medicaid programs, including coverage of benefits, eligibility, and/or provider payment rates. In particular, New York…
The Final Rule was published in the Federal Register on June 25, 2025. Read more
The Final Rule makes changes to policies to strengthen program integrity measures in the Marketplace. For example, the Special Enrollment Period for those under 150% of the FPL has been repealed beginning August 25, 2025. Several of the provisions of the Final Rule have been stayed due to ongoing litigation. These include a requirement for certain consumers who automatically re-enroll into a fully subsidized Marketplace plan to be re-enrolled into the same plan with a $5 premium until the consumer updates their exchange application to confirm APTC eligibility. Additionally, exchanges may no longer accept a consumer's self-attestation of projected annual household income when the IRS cannot verify it due to lack of tax return data; rather, exchanges must verify household income using other trusted data sources.
Extended eligibility for the Enhanced APTC for Marketplace members expired on December 31, 2025. Read more
For example, beginning January 1, 2026, should individuals mis-estimate their projected income, the OBBBA requires them to reimburse the IRS for the full amount of excess tax credit received. In addition, as of January 1, 2026, the OBBBA prohibits individuals from receiving APTCs if they enroll in health coverage through a Special Enrollment Period associated with their income. We anticipate that the combined effect of the expiration of the Enhanced APTCs, the Final Rule, and the OBBBA will reduce 2026 Marketplace membership and continue to increase the overall morbidity of the Marketplace population.
No longer in the text (2)
In August 2022, the U.S. federal government enacted the Inflation Reduction Act, which, among other things, extended eligibility for the enhanced advance premium tax credit for Marketplace members. Read more
This enhanced credit expires on December 31, 2025, and if it is not renewed or extended, or if eligibility for this enhanced credit is limited, or if such renewal or extension is delayed, it could materially adversely impact our Marketplace membership. Submissions of the product design and pricing for the Marketplace product for the following calendar year is generally due to our state regulators in the summer. If the modifications or renewal of the credit is not known at that time, we may not be able to price our products appropriately or be able to change our product pricing or strategy in response to such modifications, which could materially adversely impact our Marketplace membership,…
Additionally, the U.S. Department of Labor issued a final rule on June 19, 2018, which expanded flexibility regarding the regulation and formation of association health plans (AHPs) provided by small employer groups and associations. Read more
On June 13, 2019, the HHS, the U.S. Department of Labor and the U.S. Treasury issued a final rule allowing employers of all sizes that do not offer a group coverage plan to fund a new kind of health reimbursement arrangement (HRA), known as an individual coverage HRA (ICHRA). Beginning January 1, 2020, employees became able to use employer-funded ICHRAs to buy individual-market insurance, including insurance purchased on the public exchanges formed under the ACA. It remains uncertain whether or when the current or future administrations will propose changes to these insurance plan options that are not required to meet ACA requirements, and what the impact…
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 17, 2026 ↗ with the 10-K filed Feb 18, 2025 ↗.
24
What to watch going forwardSite analysis
- Medicaid membership under OBBBA rules.
- Marketplace enrollment after enhanced subsidies ended.
- Medicaid HBR and state rate updates.
- Delivery on raised 2026 guidance.
- CFO transition at year-end 2026.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Built on10-K FY2025 · filed 2026-02-17
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Centene Corporation’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.