Centene expects to deliver improved profitability in its three government-backed healthcare insurance businesses in 2026, it said on Friday, sending its shares up 5% and reversing previous premarket losses.

The managed-care company pointed to increased medical spending in Medicaid, due to behavioral health, home health and high-cost drugs.

In its second quarter, the Clayton-based company lost $253 million dollars, 51 cents a share. In the same period last year, Centene saw earnings of $2.26 a share.