Centene Corporation Reports Q1 2025 Adjusted EPS of $2.90 and Revenue of $46.62B, Raises Full-Year Guidance Amid 1% Share Decline

Centene Corporation reported its first quarter 2025 financial results, exceeding expectations with an adjusted earnings per share (EPS) of $2.90, a 28% increase from the previous year, surpassing the consensus estimate of $2.50. The company's revenue for the quarter reached $46.62 billion, marking a 15% increase year-over-year and beating the forecasted $42.94 billion. The company's performance was driven by a 17% year-over-year increase in premium and service revenues, totaling $42.489 billion. This growth was attributed to a significant rise in membership, with Marketplace and Medicare Prescription Drug Plan (PDP) memberships increasing by 29% and 22% respectively, compared to the first quarter of 2024. Revenue growth was seen across segments with Medicaid up by 4%, Commercial by 31%, Medicare by 48%, and Other by 8%. Centene has raised its full-year 2025 revenue guidance by $6 billion, projecting premium and service revenues to be between $164.0 billion and $166.0 billion. The company maintains its full-year adjusted EPS guidance above $7.25, despite the consensus estimate of $7.30. Despite the strong financial results, Centene's shares experienced a 1% decline in premarket trading, attributed to concerns over high costs associated with its Medicaid plans. The health benefits ratio increased to 87.5% from 87.1% in the previous year, reflecting higher costs. The SG&A expense ratio for the quarter was 7.9%, down from 8.9% last year, with the adjusted SG&A expense ratio also at 7.9%, down from 8.7% last year.