Centene’s third quarter results were driven by a combination of operational improvements in Medicaid and targeted risk management in its Marketplace segment. Management highlighted actions like rate advocacy—particularly in Florida—and program changes aimed at high-cost drugs, network optimization, and fraud prevention. CEO Sarah London described Medicaid performance as a key contributor, citing “fundamental improvement” due to these actions and a positive revenue adjustment in Florida. The company also noted that investment income and lower tax rates provided one-time benefits that lifted adjusted earnings above expectations.

Is now the time to buy CNC? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Centene’s Q3 Earnings Call

• Joshua Raskin (Nephron Research) asked how Centene is managing trend risk in Marketplace and if competitor exits threaten stability; CEO Sarah London emphasized data-driven pricing and said, “our pricing took into account...all of those actually being in place.”
• Albert Rice (UBS) inquired about the company’s ability to re-engage members if eAPTCs are extended mid-enrollment; London explained preparations for special enrollment periods but expects some membership loss regardless of policy outcome.
• Justin Lake (Wolfe Research) questioned whether Centene’s competitive positioning in Marketplace will hold in 2026; London stated the focus was on margin recovery over membership, while CFO Andrew Asher projected lower margin contributions from Part D next year.
• Andrew Mok (Barclays) sought clarity on Medicaid margin expectations and whether recent improvements are sustainable; London said the company expects stability but is “not taking our foot off the gas on HBR improvement.”
• Kevin Fischbeck (Bank of America) pressed on whether 2026 would be a trough year for Medicaid margins; London replied that margin normalization is a multi-year process, with work requirement impacts expected to emerge in 2027 and beyond.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will closely monitor (1) the impact of Marketplace repricing and policy developments around eAPTCs on both membership and margins, (2) further evidence of cost containment and rate advocacy effectiveness in Medicaid, and (3) continued progress in Medicare Advantage Star ratings and risk adjustment mechanisms. Shifts in state and federal regulatory policy, as well as execution on digital member engagement, will also be critical markers of Centene’s performance trajectory.

Centene currently trades at $35.89, up from $33.19 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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