Centene Corporation reported third‑quarter 2025 results with adjusted diluted earnings per share of $0.50, surpassing analyst expectations that ranged from a loss of $0.21 to a loss of $0.14 per share. Total revenue rose 18.2% year‑over‑year to $49.69 billion, while premium‑and‑service revenue increased 22% to $44.90 billion. The health‑benefits ratio climbed to 92.7% from 89.2% a year earlier, and the SG&A expense ratio improved to 7.0%. Operating cash flow for the quarter was $1.356 billion.
Centene recorded a $6.7 billion non‑cash goodwill impairment charge, which contributed to a GAAP diluted loss per share of $13.50 for the quarter. The impairment was driven by a sustained decline in the company’s stock price throughout 2025 and the anticipated impact of President Trump’s “One Big Beautiful Bill,” which includes substantial cuts to Medicaid and Affordable Care Act subsidies.
The company updated its full‑year 2025 outlook, projecting a GAAP diluted loss per share not to exceed $12.85 and raising its adjusted diluted EPS guidance to at least $2.00, an increase of $0.25 from the $1.75 forecast issued in July.
Centene’s strategic focus on Medicaid rate adjustments and Marketplace repricing is showing results. Over 95% of its Marketplace membership has been repriced, with average rate increases in the mid‑30s, and the company is targeting a full‑year health‑benefits ratio of approximately 93.7%. In Medicare, Prescription Drug Plans contribute about half of the segment’s revenue, and the company is positioning its Medicare Advantage business to achieve breakeven on a pretax margin basis by 2027.
Analysts note that Centene currently holds a Zacks Rank of #5 (Strong Sell) as of the reporting date, but the earnings beat and upward guidance revision may influence future analyst sentiment.
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