| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | — | 17.8x | Top tier | |
Growth | 32 | 13.9% | 7.1% | Bottom tier | |
Quality | 12 | -14.4% | 4.5% | Bottom tier | |
Safety | 53 | — | 2.6x | Around median | |
Capital Return | 43 | — | 2.12% | Around median | |
Momentum | 98 | 124.0% | 2.9% | Top tier | |
Sentiment | 63 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Centene Corp. operates in the management of government-sponsored healthcare and insurance programs, generating revenue from premiums and services through Medicaid, Medicare, and the individual health insurance Marketplace. In Q2 FY2026, its Medicaid portfolio included approximately 12.1 million members, while Marketplace membership reached about 3.5 million, annual PDP premium revenue exceeded approximately $25 billion, and Medicare Advantage accounted for slightly more than 40% of Medicare segment revenue. The company also uses more than $60 billion in pharmaceutical spending through its partnership with ESI to support its cost structure.
In Q2 FY2026, Centene recorded total revenue of $53.6 billion and gross profit of $4.6 billion, equivalent to a calculated gross margin of approximately 8.6%, while net income reached $1.1 billion and earnings per share according to EDGAR were approximately $2.19. On an adjusted basis, the company reported diluted earnings per share of $2.51 and premium and service revenue of $44.4 billion. The consolidated health benefits ratio improved to 89.6% from 93% in Q2 FY2025, while the adjusted selling, general, and administrative expense ratio declined to 6.9% from 7.1%.
Performance varied across segments in Q2 FY2026: the health benefits ratio was approximately 93.9% in Medicaid, approximately 89.5% in Medicare, and approximately 79.2% in the commercial segment led by Marketplace, compared with 90.6% in Q2 FY2025. The company ended the quarter with operating cash flow of $3.6 billion, while cash flow since the beginning of FY2026 reached approximately $8 billion, and the debt-to-capital ratio declined to 41.6% from 46.5% at the end of FY2025. In contrast, trailing twelve-month data for FY2026 showed revenue of $218.1 billion, a net loss of $5.1 billion, and negative earnings per share of approximately $10.25.
The average analyst price target is $68.29, close to the upper end of the 52-week range of $69.36, while the target range extends from $39 to $80, and the breadth of this spread indicates significant divergence in estimates of the pace of the earnings recovery. The analyst consensus is “Buy,” and Morgan Stanley raised its target on July 29, 2026, from $57 to $66 following the increase in the FY2026 adjusted earnings per share outlook. However, comparison based on the price-to-earnings multiple remains unavailable because of negative earnings per share in the trailing twelve-month data, and justification for the targets depends heavily on the sustainability of the Marketplace and PDP recovery after excluding nonrecurring settlement benefits.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Centene raised its FY2026 adjusted earnings per share forecast to more than $4.80, compared with more than $3.40 in its April 2026 update. The increase followed adjusted earnings per share of $2.51 in Q2 FY2026 and an improvement in the expected Marketplace margin to 4.5%–5%. The PDP pretax margin forecast also increased to more than 3% from 2%, but approximately $0.50 of the quarter's earnings was related to FY2025 settlements and is not expected to recur in FY2027.
The commercial health benefits ratio was 79.2% in Q2 FY2026, compared with approximately 90.6% in Q2 FY2025. Wakely data confirmed that Centene's silver-tier members had relatively higher acuity, supporting the company's risk-adjustment position, alongside a moderation in the medical utilization trend. The quarter also benefited from $180 million related to the final FY2025 risk settlement, and management raised its FY2026 Marketplace pretax margin forecast to 4.5%–5%.
Centene ended Q2 FY2026 with approximately 12.1 million Medicaid members and expects membership to decline by 8%–9% compared with the end of FY2025, rather than the previous estimate of 6%. The departure of members with lower service utilization, particularly from the expansion population, increases the acuity of remaining members and puts pressure on the health benefits ratio. The company raised its expected rate impact to approximately 5%, but retained a 50-basis-point benefit within its outlook in anticipation of declining membership and increasing acuity in the second half of FY2026.
Automated analysis for informational purposes only — not investment advice.
The Medicare segment's health benefits ratio was approximately 89.5% in Q2 FY2026 and included settlements related to FY2025. Centene raised its FY2026 PDP pretax margin forecast to more than 3%, compared with an original forecast of 2%, while PDP premium revenue is approximately $25 billion. Medicare Advantage also approached breakeven in FY2026, and management is targeting breakeven or better in FY2027, with increased focus on the dual-eligible population, which represents approximately 40% of its portfolio.
Centene generated operating cash flow of $3.6 billion in Q2 FY2026 and approximately $8 billion since the beginning of the fiscal year. The company repurchased $260 million of senior notes, and the debt-to-capital ratio declined to 41.6% from 46.5% at the end of FY2025. Cash available for general corporate uses was $715 million, with more than $3 billion in pass-through Medicaid payments expected in Q3 FY2026, which do not affect key operating metrics, according to management.
The average analyst target is $68.29, compared with an upper end of $69.36 within the 52-week range of $28.24–$69.36. Individual targets range from $39 to $80, reflecting broad disagreement about the sustainability of margin recovery following the disruptions of FY2025. The analyst consensus is “Buy,” and Morgan Stanley raised its target from $57 to $66 on July 29, 2026, but the absence of a positive price-to-earnings multiple because of the trailing loss leaves the valuation dependent on the expected earnings recovery rather than earnings realized over the past twelve months.
