Centene Corporation (NYSE:CNC) reported a fourth-quarter adjusted loss even as revenue topped expectations, with investor attention drawn to a difficult period in the company’s Commercial business. The stock fell nearly 3% in premarket trading following the release.
The healthcare group posted an adjusted loss of $1.19 per share for the quarter, slightly narrower than the $1.22 loss analysts had forecast. Revenue rose 23% year on year to $49.73 billion, comfortably ahead of the $48.39 billion consensus. Despite the top-line beat, Centene’s consolidated health benefits ratio climbed to 94.3% in the quarter, a sharp deterioration from 89.6% a year earlier.
Pressure was most evident in the Commercial segment, where the health benefits ratio reached 95.4%, around 100 basis points above the company’s expectations due to net out-of-period items. By contrast, the Medicaid business showed some improvement, with an HBR of 93.0%, representing a 40 basis point sequential improvement from the third quarter.
“We are pleased to end a challenging year carrying positive momentum from the extensive and decisive actions taken in the back half of 2025 with the goal of restoring Marketplace profitability and stabilizing the trajectory of our Medicaid business,” said Sarah M. London, Chief Executive Officer of Centene Corporation.
For the full year 2025, Centene reported adjusted earnings of $2.08 per share on revenue of $194.78 billion, up 20% from 2024. Looking ahead, the company issued 2026 guidance calling for adjusted earnings per share above $3.00, underscoring management’s confidence in its recovery and profitability improvement plans.