$CNC

CENTENE CORP

CIK:0001071739|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Premium and service revenues	$ 44,375	$ 42,467	$ 89,030	$ 84,956
Premium tax	9,204	6,275	14,493	10,406
Total revenues	53,579	48,742	103,523	95,362
Expenses:
Medical costs	39,029	38,808	77,332	75,311
Cost of services	729	641	1,431	1,339
Selling, general and administrative expenses	3,103	3,036	6,500	6,389
Depreciation expense	139	141	273	283
Amortization of acquired intangible assets	161	173	327	346
Premium tax expense	9,220	6,346	14,601	10,563
Impairment	0	55	0	55
Total operating expenses	52,381	49,200	100,464	94,286
Earnings (loss) from operations	1,198	(458)	3,059	1,076
Other income (expense):
Investment and other income	435	371	842	753
Gain on debt extinguishment	6	0	1	0
Interest expense	(153)	(170)	(317)	(340)
Earnings (loss) before income tax	1,486	(257)	3,585	1,489
Income tax expense	399	2	959	434
Net earnings (loss)	1,087	(259)	2,626	1,055
Loss attributable to noncontrolling interests	4	6	6	3
Net earnings (loss) attributable to Centene Corporation	$ 1,091	$ (253)	$ 2,632	$ 1,058
Net earnings (loss) per common share attributable to Centene Corporation:
Basic earnings (loss) per common share (in dollars per share)	$ 2.21	$ (0.51)	$ 5.34	$ 2.14
Diluted earnings (loss) per common share (in dollars per share)	$ 2.19	$ (0.51)	$ 5.30	$ 2.13
Weighted average number of common shares outstanding:
Basic (in shares)	493,819	493,548	492,949	494,896
Diluted (in shares)	497,637	493,548	496,605	496,328
Premium
Revenues:
Premium and service revenues	$ 43,582	$ 41,740	$ 87,469	$ 83,452
Service
Revenues:
Premium and service revenues	$ 793	$ 727	$ 1,561	$ 1,504

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net earnings	$ 2,626	$ 1,055
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	600	629
Stock compensation expense	126	94
Impairment	0	55
(Gain) loss on debt extinguishment	(1)	0
Deferred income taxes	(34)	(116)
Loss on divestitures	0	10
Changes in assets and liabilities
Premium and trade receivables	(6)	(1,801)
Other assets	(488)	(543)
Medical claims liabilities	(268)	1,809
Unearned revenue	(30)	21
Accounts payable and accrued expenses	4,249	209
Other long-term liabilities	1,162	1,857
Other operating activities, net	20	16
Net cash provided by operating activities	7,956	3,295
Cash flows from investing activities:
Capital expenditures	(374)	(343)
Purchases of investments	(2,328)	(3,593)
Sales and maturities of investments	2,438	2,508
Net cash (used in) investing activities	(264)	(1,428)
Cash flows from financing activities:
Proceeds from long-term debt	0	750
Payments and repurchases of long-term debt	(1,304)	(1,707)
Common stock repurchases	(33)	(473)
Proceeds from common stock issuances	18	18
Other financing activities, net	(3)	(12)
Net cash (used in) financing activities	(1,322)	(1,424)
Net increase in cash, cash equivalents and restricted cash and cash equivalents	6,370	443
Cash and cash equivalents reclassified (to) held for sale	(73)	0
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period	17,957	14,156
Cash, cash equivalents and restricted cash and cash equivalents, end of period	24,254	14,599
Supplemental disclosures of cash flow information:
Interest paid	302	320
Income tax net payments (refunds)	(225)	504
The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported within the Consolidated Balance Sheets to the totals above:
Cash and cash equivalents	24,151	14,513
Restricted cash and cash equivalents, included in restricted deposits	103	86
Total cash, cash equivalents and restricted cash and cash equivalents	$ 24,254	$ 14,599

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 24,151	$ 17,888
Premium and trade receivables	18,076	18,105
Short-term investments	2,906	2,432
Other current assets	1,552	1,945
Total current assets	46,685	40,370
Long-term investments	16,302	17,035
Restricted deposits	1,487	1,412
Property, software and equipment, net	2,130	2,037
Goodwill	10,835	10,835
Intangible assets, net	4,203	4,530
Other long-term assets	1,370	528
Total assets	83,012	76,747
Current liabilities:
Medical claims liability	20,262	20,544
Accounts payable and accrued expenses	17,965	13,796
Return of premium payable	1,751	1,592
Unearned revenue	706	736
Current portion of long-term debt	75	50
Total current liabilities	40,759	36,718
Long-term debt	16,030	17,351
Deferred tax liability	756	833
Other long-term liabilities	2,810	1,789
Total liabilities	60,355	56,691
Commitments and contingencies
Redeemable noncontrolling interests	23	23
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000 shares; no shares issued or outstanding at June 30, 2026 and December 31, 2025	0	0
Common stock, $0.001 par value; authorized 800,000 shares; 625,693 issued and 493,987 outstanding at June 30, 2026, and 623,463 issued and 491,757 outstanding at December 31, 2025	1	1
Additional paid-in capital	20,890	20,777
Accumulated other comprehensive (loss)	(194)	(58)
Retained earnings	11,306	8,674
Treasury stock, at cost (131,706 and 131,706 shares, respectively)	(9,441)	(9,441)
Total Centene stockholders' equity	22,562	19,953
Nonredeemable noncontrolling interest	72	80
Total stockholders' equity	22,634	20,033
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 83,012	$ 76,747