Centene Corporation (NYSE:CNC) shares jumped more than 10% in premarket trading Wednesday after the healthcare insurer reported third-quarter results that sharply outperformed expectations and raised its full-year guidance, signaling continued progress in its turnaround strategy.
The St. Louis-based company posted adjusted earnings of $0.50 per share, beating the analyst consensus of -$0.16, while revenue rose 22% year-over-year to $49.69 billion, surpassing expectations of $47.83 billion.
Centene also raised its full-year 2025 adjusted EPS forecast to at least $2.00, up from $1.75 previously and well above the $1.67 consensus estimate.
“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, Centene’s Chief Executive Officer.
“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 underlying performance, Centene reported a GAAP loss of $13.50 per share, reflecting a $6.7 billion non-cash goodwill impairment charge tied to the One Big Beautiful Bill Act and a decline in stock price during July 2025.
Premium and service revenue climbed 22% year-on-year to $44.9 billion, boosted by growth in Medicare Prescription Drug Plans, Marketplace expansion, and higher Medicaid rates, which helped offset a reduction in Medicaid membership.
The health benefits ratio — a measure of medical expenses as a percentage of premiums — increased to 92.7% from 89.2% a year earlier, driven by rising medical costs in Marketplace and Medicaid segments, particularly in behavioral and home health services.
Meanwhile, the company’s selling, general, and administrative expense ratio improved to 7.0% from 8.3%, reflecting stronger cost discipline and operating leverage amid revenue growth.
The results reinforced investor confidence in Centene’s ability to balance cost management with growth initiatives as it continues to restructure operations and improve profitability.