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Centene Corporation CNC reported third-quarter 2025 adjusted earnings per share of 50 cents, which beat the Zacks Consensus Estimate of a loss of 21 cents. However, the bottom line fell from the year-ago profit of $1.62 per share.
Revenues advanced 18.2% year over year to $49.7 billion. The top line beat the consensus mark by 4.4%.
The quarterly results benefited from solid premium growth, fueled by expanding membership in the Prescription Drug Plan (PDP) and Commercial Marketplace businesses, along with overall growth in the Marketplace business. However, the upside was partly offset by rising medical costs, declining service revenues and year-over-year membership declines in Medicaid and Medicare businesses.
Centene Corporation price-consensus-eps-surprise-chart | Centene Corporation Quote
Revenues from Medicaid grew 9% year over year to $23.2 billion, while Medicare revenues of $9.4 billion surged 66% year over year in the quarter under review. Meanwhile, commercial revenues improved 26% year over year to $11 billion.
Centene's premium totaled $44.1 billion, which advanced 22.2% year over year on the back of higher premiums and an expanding membership base in the PDP business, coupled with overall growth in the Marketplace business and Medicaid rate hikes. The metric surpassed the Zacks Consensus Estimate by 3.1% and our estimate by 2.7%.
Service revenues of $772 million decreased 1.5% year over year in the third quarter. However, the metric beat our estimate of $723 million. Investment and other income grew 4.2% year over year to $450 million, which beat the Zacks Consensus Estimate of $381.4 million.
Total membership (excluding TRICARE) was 28 million as of Sept. 30, 2025, which grew 8% year over year, driven by growing commercial members, partially offset by membership declines in the Medicaid and Medicare businesses. The metric beat the consensus mark by 0.5%.
Centene’s health benefits ratio of 92.7% deteriorated 350 basis points year over year in the quarter under review, and slightly missed the consensus mark of 93%. Operating expenses totaled $56.6 billion, which escalated 37% year over year and came higher than our estimate of $47.6 billion. The year-over-year increase was due to higher medical costs, impairment expenses, and selling, general and administrative expenses. Medical costs alone jumped 27% year over year.
Adjusted net earnings were recorded at $245 million compared with year-ago figure of $849 million.
Centene exited the third quarter with cash and cash equivalents of $17.1 billion, which advanced from the $14.1 billion figure at 2024-end. Total assets of $82.1 billion decreased from the 2024-end level of $82.4 billion.
Long-term debt amounted to $17.5 billion, which dipped from the $18.4 billion figure as of Dec. 31, 2024. The current portion of long-term debt totaled $38 million.
Total stockholders’ equity of $21 billion fell from the 2024-end figure of $26.5 billion.
Centene generated $4.7 billion of net cash from operations in the first nine months of 2025, up from $741 million a year ago.
Centene bought back common shares worth around $473 million in the first nine months of 2025.
CNC currently carries a Zacks Rank #5 (Strong Sell).
Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.
ANI Pharmaceuticals, Inc. ANIP carries a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s bottom line for the to-be-reported quarter is pegged at $1.74 per share, indicating 29.9% year-over-year growth. ANI Pharmaceuticals’ earnings beat estimates in each of the past four quarters, with an average surprise of 22.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Option Care Health, Inc. OPCH has a Zacks Rank of 3 (Hold) at present. The Zacks Consensus Estimate for OPCH’s bottom line for the to-be-reported quarter is pegged at 43 cents per share, indicating 4.9% year-over-year growth. Option Care Health’s earnings beat estimates in each of the past four quarters, with an average surprise of 13%.
The Cigna Group CI currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CI’s bottom line for the to-be-reported quarter of $7.70 per share indicates 2.5% year-over-year growth. It remained stable over the past week. Cigna Group’s earnings beat estimates in three of the last four quarters and missed once.
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This article originally published on Zacks Investment Research (zacks.com).
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