CNCHIGH SIGNALFINANCIAL10-K

CNC shows dramatic operational deterioration with an 85% collapse in share buybacks, 17% gross profit decline despite 19% revenue growth, and 24% equity destruction.

The massive reduction in share buybacks from $3.1B to $475M signals severe capital allocation constraints or management's loss of confidence in the stock. The simultaneous collapse in gross profit margins while revenue grew indicates fundamental operational problems or unsustainable pricing pressures that are destroying shareholder value.

Comparing 2026-02-17 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

CNC's financials reveal a company in operational distress - while revenue surged 19% to $194.8B, gross profit plummeted 17% to $14.2B, indicating severe margin compression. The company dramatically cut share buybacks by 85% from $3.1B to $475M while stockholders' equity fell 24% to $20.0B, despite cash increasing 27% to $17.9B. This combination suggests management is hoarding cash due to operational challenges while the core business deteriorates, creating significant value destruction for investors.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-84.8%
$3.1B$475.0M

Buyback activity reduced 84.8% — capital being redeployed elsewhere or cash conservation underway.

Cash & Equivalents
Balance Sheet
+27.2%
$14.1B$17.9B

Cash grew 27.2% — improving liquidity position supports investment and shareholder returns.

Stockholders Equity
Balance Sheet
-24.4%
$26.4B$20.0B

Equity decreased 24.4% — buybacks or losses reducing book value, monitor solvency ratios.

Revenue
P&L
+19.4%
$163.1B$194.8B

Revenue growing 19.4% — solid top-line momentum, watch margins for quality of growth.

Gross Profit
P&L
-16.8%
$17.1B$14.2B

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-02-18
ADDED
As of February 13, 2026, the registrant had 491,771 thousand shares of common stock issued and outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Item 7A.
In particular, these statements include, without limitation, statements about our expected future operating or financial performance, changes in laws and regulations, market opportunity, expectations concerning pricing actions, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments and the adequacy of our available cash resources.
In addition, the year ended December 31, 2025, includes a tax benefit of $4 million, or $0.01 per share, related to tax adjustments on previously reported divestitures and impacts of the One Big Beautiful Bill Act (OBBBA).
(3) Reflects the $0.01 impact of using 494,502 thousand shares in the calculation of adjusted diluted EPS for the year ended December 31, 2025.
+7 more — sign up free →
REMOVED
As of February 14, 2025, the registrant had 496,044 thousand shares of common stock issued and outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 7A.
In particular, these statements include, without limitation, statements about our expected future operating or financial performance, changes in laws and regulations (including but not limited to, renewal and modification of the enhanced advance premium tax credits associated with the Marketplace product), market opportunity, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments and the adequacy of our available cash resources.
Medical Management (USMM) due to the finalization of working capital adjustments of $13 million, or $0.02 per share ($0.02 after-tax) and costs related to the pharmacy benefits management (PBM) legal settlement of $6 million, or $0.01 per share ($0.00 after-tax).
The year ended December 31, 2022, includes tax expense of $107 million, or $0.18 per share, related to the Magellan Specialty Health divestiture and a $15 million, or $0.03 per share, tax benefit related to the RxAdvance impairment.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
CRMHIGHSalesforce significantly increased debt by 71% to $14.4B while simultaneously ac...
2026-03-02
UNHHIGHUNH's operating income plummeted 41% despite 12% revenue growth, indicating seve...
2026-03-02
PFEHIGHPfizer achieved a dramatic 87.3% reduction in total debt from $31.4B to $4.0B, r...
2026-02-26
GILDHIGHGILD dramatically increased R&D spending by 81.5% to $9.1B while introducing new...
2026-02-24
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →