Centene Corp

Centene delivered a deeply troubled second quarter for fiscal 2025, swinging to an adjusted loss of $0.16 per diluted share and missing the $0.23 consensus estimate by 170.52%, even as revenues surged 22.4% year-over-year to $48.74 billion, beating expectations by 10.28%. The stark disconnect between top-line strength and bottom-line collapse traces directly to a dramatic deterioration in the health benefits ratio, which climbed to 93.0% from 87.6% a year ago, as the company absorbed a significant reduction in its net 2025 Marketplace risk adjustment revenue estimate alongside elevated medical costs across its Commercial, Medicaid, and Medicare segments. The revenue beat was largely driven by Medicare Prescription Drug Plan growth and Marketplace membership expansion to 5.9 million members, yet those gains were overwhelmed by worsening cost dynamics. A shareholder lawsuit filed following the company's earlier guidance withdrawal, which sent shares tumbling more than 40% in a single session, underscores the severity of investor concern. Looking ahead, Centene slashed its 2025 earnings outlook to approximately $1.75 per share, with a potential further reduction to $1.25, and is repositioning pricing for 2026.