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Investing.com -- Centene Corporation (NYSE:CNC) shares surged more than 10% premarket on Wednesday after the healthcare insurer reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year outlook.
The St. Louis-based company posted adjusted earnings of $0.50 per share for the third quarter, handily beating the analyst consensus estimate of -$0.16. Revenue came in at $49.69 billion, surpassing the $47.83 billion analysts had expected and representing a 22% increase from the same period last year. The company also raised its full-year 2025 adjusted earnings guidance to at least $2.00 per share, up from its previous forecast of $1.75 and well above the analyst consensus of $1.67.
"Our third quarter results and increased full year outlook demonstrate tangible progress against the near-term milestones we laid out for investors in July," said Sarah M. London, Chief Executive Officer of Centene. "While much work remains ahead, our organization remains focused on driving margin improvement, delivering outcomes for our members, and positioning the business for long-term success."
Despite the strong adjusted results, Centene reported a GAAP loss of $13.50 per share due to a $6.7 billion non-cash goodwill impairment charge. The company attributed this impairment to market conditions in July 2025, including the One Big Beautiful Bill Act and a decline in its stock price.
Premium and service revenues increased 22% YoY to $44.9 billion, driven primarily by growth in the Medicare Prescription Drug Plan business, Marketplace expansion, and Medicaid rate increases, which offset lower Medicaid membership.
The company’s health benefits ratio rose to 92.7% from 89.2% in the same quarter last year, reflecting increased Marketplace medical costs and higher Medicaid costs, particularly in behavioral health and home health services.
Centene’s selling, general and administrative expense ratio improved to 7.0% from 8.3% in the prior-year quarter, as the company continued to leverage expenses over higher revenues.