Centene

CNC Q3 2025 Earnings

Reported Oct 28, 2025 at 8:02 PM ET · SEC Source

Q3 25 EPS

$0.50

BEAT +404.32%

Est. $-0.16

Q3 25 Revenue

$49.69B

BEAT +3.88%

Est. $47.83B

vs S&P Since Q3 25

+55.6%

BEATING MARKET

CNC +60.4% vs S&P +4.8%

Market Reaction

Did CNC Beat Earnings? Q3 2025 Results

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… Read more 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.

Key Takeaways

  • Premium and membership growth in PDP business drove significant revenue increase
  • Overall market growth in the Marketplace business
  • Medicaid rate increases partially offset lower Medicaid membership
  • SG&A expense ratio improved to 7.0% from 8.3% due to expense leverage over higher revenues
  • Medicaid HBR of 93.4% included ~40 bps benefit from retroactive revenue adjustment from a large state
  • Commercial and Medicare segment results in line with expectations
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CNC YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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CNC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our third quarter results and increased full year outlook demonstrate tangible progress against the near-term milestones we laid out for investors in July.”

— Sarah M. London, Q3 2025 Earnings Press Release