Centene Corp

Centene Corporation delivered a decisive adjusted earnings beat in Q3 2025, posting adjusted diluted EPS of $0.50 against a consensus estimate of negative $0.16, a 404.32% positive surprise, even as a $6.72 billion non-cash goodwill impairment charge drove a GAAP loss of $13.50 per share. Revenue climbed 18.2% year-over-year to $49.69 billion, beating the $47.83 billion consensus by 3.88%, with premium and service revenues surging 22% to $44.90 billion on strong Medicare PDP membership growth and Marketplace expansion. The quarter's core story, however, was cost pressure: the health benefits ratio deteriorated to 92.7% from 89.2% a year ago, weighed down by elevated Marketplace medical costs, unfavorable risk adjustment estimates, and rising Medicaid utilization in behavioral and home health services. Partially offsetting that pressure, the SG&A ratio improved to 7.0% from 8.3%, reflecting expense discipline and PDP business leverage. Management raised full-year 2025 adjusted EPS guidance by $0.25 to at least $2.00, signaling cautious confidence in Medicaid margin recovery despite a still-challenging regulatory and medical cost environment.