Centene

CNC Q1 2025 Earnings

Reported Apr 24, 2025 at 8:19 PM ET · SEC Source

Q1 25 EPS

$2.90

BEAT +15.27%

Est. $2.52

Q1 25 Revenue

$46.62B

BEAT +7.80%

Est. $43.25B

vs S&P Since Q1 25

-44.3%

TRAILING MARKET

CNC -13.4% vs S&P +30.9%

Market Reaction

Did CNC Beat Earnings? Q1 2025 Results

Centene opened 2025 with a standout quarter, posting adjusted diluted EPS of $2.90 against a consensus estimate of $2.52, a beat of 15.27%, while revenue of $46.62 billion topped expectations by 7.80% and climbed 15.4% from the year-ago period. The d… Read more Centene opened 2025 with a standout quarter, posting adjusted diluted EPS of $2.90 against a consensus estimate of $2.52, a beat of 15.27%, while revenue of $46.62 billion topped expectations by 7.80% and climbed 15.4% from the year-ago period. The driving force behind the outperformance was a 29% surge in Marketplace membership to 5.63 million enrollees, which propelled premium and service revenues to $42.49 billion and helped swing operating cash flow to a positive $1.51 billion from negative $456 million a year earlier. Medicaid costs drew some investor attention, with the Medicaid health benefits ratio rising to 93.6% from 90.9%, largely due to elevated influenza-related claims, though improved Medicare HBR of 86.3% provided a meaningful offset. On the strength of Marketplace enrollment momentum and Medicare Advantage retention, Centene raised its full-year premium and service revenue guidance by $6 billion to a range of $164 billion to $166 billion, while reiterating its adjusted diluted EPS floor of greater than $7.25 for the full year.

Key Takeaways

  • 17% year-over-year premium and service revenue growth driven by PDP business expansion and Marketplace growth
  • 29% year-over-year membership growth in Marketplace to 5,626,000 members
  • 22% year-over-year Medicare PDP membership growth to 7,867,800 members
  • Adjusted diluted EPS of $2.90 representing 28% year-over-year growth
  • SG&A expense ratio improvement to 7.9% from 8.9% driven by operating leverage
  • Medicare HBR improvement to 86.3% from 90.8% due to Inflation Reduction Act Part D program changes
  • Operating cash flow of $1.5 billion driven by net earnings and increase in medical claims liabilities
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CNC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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CNC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our first quarter results demonstrate the resiliency of Centene's platform and the progress we are making as an organization while navigating a dynamic policy landscape.”

— Sarah M. London, Q1 2025 Earnings Press Release