Centene Corporation (CNC) AI Stock Analysis
CNC AI stock analysis summary
AI ResearchCentene Corporation is a managed healthcare organization delivering Medicaid, Medicare, and commercial insurance plans to underserved populations across the United States. Over the trailing twelve months, revenue reached $180.30B despite a net profit margin of -2.8% and diluted EPS of -$10.44. CNC shares gained 94.1% over the past year and trade at a forward P/E of 11.2x.
- Market cap
- $34.16B
- Revenue (TTM)
- $180.30B
- P/E
- — fwd 11.2x
- 1Y return
- 94.1% S&P 500 16.8%
- Avg. target
- $71.78 3.8% vs last close
Bull case
- Centene's forward P/E of 11.2x and EV/EBITDA of 3.9x represent a substantial discount to the median of its S&P 500 Healthcare peers at 16.6x and 15.7x.
- The balance sheet provides $27.06B in cash and short-term investments against $16.11B in debt, yielding net cash of $10.95B.
- Analysts expect EPS to expand 134.8% to $4.88 for the current fiscal year following 4 consecutive quarterly earnings beats.
Bear case
- Centene posted net income of -$6.67B in FY2025 alongside a trailing twelve-month profit margin of -2.8% and EPS of -$10.44.
- Trailing twelve-month return on equity stands at -20.4%, reflecting recent net losses.
- Consensus estimates project revenue to fall 1.6% to $192.84B in the next fiscal year from $196.02B projected for the current fiscal year.
What Centene does
Centene Corporation operates as a multinational healthcare organization focused on providing comprehensive healthcare programs to underserved populations in the United States. Through its Managed Care segment, the company delivers health plan coverage via government-subsidized programs including Medicaid, CHIP (Children's Health Insurance Program), foster care, and Medicare-Medicaid plans, alongside commercial group and individual health policies. Its Specialty Services segment provides pharmacy benefits management, nurse advice lines, vision and dental care, and staffing solutions for correctional facilities and government agencies, including Military Health System beneficiaries.
Growth and profitability
Centene grew annual revenue from $125.98B in FY2021 to $194.78B in FY2025, recording a 5-year revenue CAGR of 11.9%. Revenue increased 19.4% in FY2025, though operating margin declined to -3.9% and net income fell to -$6.67B, resulting in a net margin of -3.4%. Over the trailing twelve months, Centene generated $180.30B in revenue with an operating margin of 3.8% and EPS of -$10.44. In the latest quarter ended June 30, 2026, quarterly revenue rose 4.6% year-over-year while quarterly earnings grew 18.3%.
Balance sheet and cash flow
As of June 30, 2026, Centene held $27.06B in cash and short-term investments compared to $16.11B in total debt, giving the company net cash of $10.95B. Total assets stood at $83.01B and shareholders' equity was $22.56B, with a current ratio of 1.15 and a debt-to-equity ratio of 0.71. Operating cash flow in FY2025 was $5.09B, producing free cash flow of $4.32B. During FY2025, capital expenditures reached $767.0M and share buybacks totaled $475.0M, contributing to a 15.9% reduction in share count over 5 years.
Valuation and performance
Centene trades at a forward P/E of 11.2x, an EV/EBITDA of 3.9x, and a price-to-sales ratio of 0.2x, each sitting below the median of its S&P 500 Healthcare peers at 16.6x, 15.7x, and 3.4x, respectively. The company carries an enterprise value of $19.72B and a market capitalization of $34.16B. CNC stock appreciated 94.1% over the past year, outperforming the S&P 500 (SPY) return of 16.8%. However, its 5-year gain of 5.9% trails the S&P 500 return of 83.0%.
What analysts expect
Wall Street analyst coverage consists of 7 Strong Buy, 1 Buy, 12 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target of $71.78 represents a 3.8% premium over the last close of $69.16. For the fiscal year ending December 31, 2026, analysts estimate EPS of $4.88, reflecting 134.8% growth, on revenue of $196.02B. Centene has topped consensus EPS estimates in each of the last 4 quarters, with its next earnings announcement scheduled for October 27, 2026.
Key risks and what to watch
- Centene's trailing twelve-month operating margin of 3.8% trails the median of its S&P 500 Healthcare peers of 19.1%.
- Operating performance remains volatile after the company reported an operating margin of -3.9% and a net margin of -3.4% in FY2025.
- At $69.16, the stock trades 27.7% above its 200-day moving average and near its 52-week high of $71.21.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CNC AI stock analysis
This page is an AI-written research summary of Centene Corporation (CNC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CNC income statement, CNC balance sheet, CNC key metrics, CNC analyst forecast, CNC chart. See the CNC stock overview for the latest quote and news.
CNC AI stock analysis FAQ
Does Centene Corporation pay a dividend?
Centene Corporation does not pay a dividend. The company directs capital toward capital expenditures, which were $767.0M in FY2025, and share buybacks, which totaled $475.0M in FY2025.
What is Centene's debt and liquidity position?
As of June 30, 2026, Centene held $27.06B in cash and short-term investments and $16.11B in total debt, providing a net cash surplus of $10.95B. Its current ratio was 1.15 and debt-to-equity ratio was 0.71.
What are analysts' earnings expectations for Centene?
For the fiscal year ending December 31, 2026, analysts estimate EPS of $4.88, representing a 134.8% increase, on revenue of $196.02B. For the following fiscal year, 21 analysts project EPS of $5.35 and revenue of $192.84B.
When is Centene reporting its next quarterly results?
Centene is scheduled to release its next quarterly financial results on October 27, 2026.