Overview

* Centene Q3 2025 revenue rises 22% yr/yr, beating analyst expectations

* Adjusted EPS of $0.50 for Q3 beats analyst expectations

* $6.7 bln non-cash goodwill impairment leads to GAAP loss in Q3

Outlook

* Centene ( CNC ) raises 2025 adjusted diluted EPS forecast by $0.25 to at least $2.00

* Company updates 2025 GAAP forecast to a diluted loss per share not exceeding $(12.85)

Result Drivers

* PREMIUM AND MEMBERSHIP GROWTH - Increase in premium and service revenues driven by PDP and Marketplace growth, and Medicaid rate increases, despite lower Medicaid membership

* HIGHER MEDICAL COSTS - Health benefits ratio increased due to higher medical costs in Marketplace and Medicaid, partially offset by Medicaid rate increases

* LOWER SG&A RATIO - SG&A expense ratio decreased due to leveraging expenses over higher revenues and growth in PDP business, which has a lower SG&A ratio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $49.69 $47.75

Revenue bln bln (14

Analysts

)

Q3 Beat $0.50 -$0.13

Adjusted (15

EPS Analysts

)

Q3 EPS -$13.50

Q3 Net -$6.63

Income bln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 16 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the managed healthcare peer group is "buy."

* Wall Street's median 12-month price target for Centene Corp ( CNC ) is $36.00, about 7.8% above its October 28 closing price of $33.19

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)