Centene Corporation announced its first quarter 2025 financial results, reporting adjusted diluted earnings per share (EPS) of $2.90, which surpassed analyst estimates. Premium and service revenues increased 17% year-over-year to $42.489 billion, also exceeding market expectations, with total revenues reaching $46.620 billion.
The company raised its full-year 2025 premium and service revenues guidance by $6.0 billion, to a new range of $164.0 billion to $166.0 billion. This increase is attributed to a $5.0 billion outperformance in Marketplace enrollment and a $1.0 billion outperformance in Medicare Advantage member retention. Centene reaffirmed its 2025 adjusted diluted EPS guidance floor of greater than $7.25.
Despite the strong revenue and EPS beat, Centene's shares experienced a dip due to concerns over higher medical costs in its Medicaid business, with a Medicaid Health Benefits Ratio (HBR) of 93.6%, above estimates. The company's total Medicaid memberships fell 2.5% to 12.958 million, while Commercial Marketplace membership grew 29% to 5.626 million and Medicare PDP membership grew 22% to 7.867 million.
In other developments, Centene's subsidiary, SilverSummit Healthplan, was selected by the Nevada Department of Health and Human Services to continue providing Medicaid managed care and to offer the Marketplace public option, the Battle Born State Plan, expected to cover 16,000 individuals in its first year. Meridian Health Plan of Illinois also secured a contract to serve dually eligible Medicare and Medicaid members.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.