Let’s dig into the relative performance of Centene (NYSE: CNC) and its peers as we unravel the now-completed Q2 health insurance providers earnings season.

Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.

The 12 health insurance providers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 9.8% on average since the latest earnings results.

Centene (NYSE: CNC)

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Centene reported revenues of $48.74 billion, up 22.4% year on year. This print exceeded analysts’ expectations by 11.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ customer base estimates.

"We are disappointed by our second quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory," said Chief Executive Officer of Centene, Sarah M. London.

Centene scored the biggest analyst estimates beat of the whole group. The company added 60,900 customers to reach a total of 28 million. Unsurprisingly, the stock is up 7.6% since reporting and currently trades at $28.80.

Is now the time to buy Centene? Access our full analysis of the earnings results here, it’s free.

Best Q2: CVS Health (NYSE: CVS)

With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE: CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.

CVS Health reported revenues of $98.92 billion, up 8.4% year on year, outperforming analysts’ expectations by 5.1%. The business had a stunning quarter with a solid beat of analysts’ same-store sales and EPS estimates.

The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $70.43.

Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it’s free.

Oscar Health (NYSE: OSCR)

Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.

Oscar Health reported revenues of $2.86 billion, up 29% year on year, falling short of analysts’ expectations by 3.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Oscar Health delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 45.3% since the results and currently trades at $20.08.

Read our full analysis of Oscar Health’s results here.

Cigna (NYSE: CI)

With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.

Cigna reported revenues of $67.18 billion, up 11.1% year on year. This number beat analysts’ expectations by 8%. It was a very strong quarter as it also put up customer base in line with analysts’ estimates and a narrow beat of analysts’ EPS estimates.

The company lost 9,000 customers and ended up with a total of 16.36 million. The stock is up 1% since reporting and currently trades at $301.10.

Read our full, actionable report on Cigna here, it’s free.

Molina Healthcare (NYSE: MOH)

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Molina Healthcare reported revenues of $11.43 billion, up 15.7% year on year. This result surpassed analysts’ expectations by 4.4%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ customer base estimates.

Molina Healthcare had the weakest full-year guidance update among its peers. The company lost 6,000 customers and ended up with a total of 5.75 million. The stock is down 7.9% since reporting and currently trades at $175.55.

Read our full, actionable report on Molina Healthcare here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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