Centene Stock Earnings Reports

Centene reported Q3 2025 adjusted EPS of $0.50, beating prior expectations, and raised full-year adjusted EPS guidance to at least $2. Key operational takeaways: Medicaid HBR improved sequentially to 93.4% (partly driven by a $150M positive revenue adjustment in Florida, $90M retroactive), reflecting progress from rate advocacy, clinical/ network changes and fraud/waste/abuse actions; Marketplace finished Q3 roughly in line but saw higher utilization in September, prompting Centene to hold $125M of a prior Q4 provision and add $75M of additional prudent cover for potential year‑end utilization/eAPTC volatility; Centene repriced Marketplace for 2026 (average mid‑30s rate increases across ~95% of membership) to reflect higher baseline morbidity, trend, program integrity and potential eAPTC expirations and expects 2026 margin improvement in Marketplace; Medicare (MA and PDP) performed in line with expectations, with PDP results benefiting from risk corridors and MA progressing toward a 2027 breakeven pretax margin; SG&A remains a focus and the company is on track for the $500M pretax SG&A benefit; investment income outperformed in Q3 largely from one‑time gains and timing, and management may take Q4 investment portfolio losses to re-position for 2026; Q3 GAAP loss per share of $13.50 reflects a $6.7B noncash goodwill impairment, which management says does not affect cash, statutory capital or adjusted EPS; operating cash flow was strong at $1.4B, debt covenants remain comfortable (debt-to-cap ~45.5%), and Centene will provide formal 2026 guidance on the Q4 call in early February. Main risks remain policy uncertainty (eAPTCs), marketplace morbidity and utilization, program integrity/legal stays, and state‑by‑state Medicaid policy changes (including potential future work requirements).