Centene’s stock pulled a sharp U-turn into the green, after the health insurer helped assuage investor worries by providing details on its full-year outlook, and by suggesting the worst will pass soon.

Wall Street regained confidence in Medicaid insurers after Centene said on Friday it expects to be able to raise rates charged to states for 2026 health plans for low-income Americans and strengthen profit margins.

Shares of health coverage company Centene (NYSE:CNC) jumped 5.9% in the afternoon session after the company reported second-quarter results that missed earnings estimates, but the stock rallied as investors looked past the disappointment as sales came in ahead of expectations.

Centene is responding by repricing plans for 2026 and focusing on cost controls while Medicare Advantage and Prescription Drug segments outperform expectations. Learn more on CNC stock here.

Centene posted a $253 million loss in the second quarter as it navigates significant cost pressures on the Affordable Care Act's marketplaces. | Centene posted a $253 million loss in the second quarter as it navigates significant cost pressures on the Affordable Care Act's marketplaces.

Centene Corp. issued fresh annual guidance and laid out a plan to address problems in its Affordable Care Act business, offering investors a ray of hope in a year when insurers across the industry have struggled to cope with rising costs and changing government policies.

The managed-care specialist's troubles began in April when its quarterly results were overshadowed by membership declines in Medicaid and Medicare. Centene in July then withdrew its financial guidance for 2025 after warning that its earnings would fall well short of expectations.

Intel stock falls after the chip maker reports a wider loss in the second quarter, while Centene rises even as it posts a surprise quarterly loss.