Centene Corporation, a major U.S. healthcare insurance provider, reported mixed fourth-quarter 2025 results as it grapples with shrinking Medicaid membership and rising medical costs. The company’s stock fell on Friday following the announcement of a mixed outlook for fiscal 2026.
The company reported a fourth-quarter adjusted loss of $1.19 per share, exceeding the consensus loss estimate of $1.22. However, sales surged from $40.81 billion to $49.73 billion, exceeding the consensus estimate of $48.39 billion. Centene’s health benefits ratio (HBR)—a key measure of medical costs relative to premiums—rose to 94.3% from 89.6% a year ago, primarily driven by higher Marketplace morbidity in 2025 and program changes from the Inflation Reduction Act.
Total membership across Centene’s portfolio declined to 27.63 million from 28.60 million a year ago, with the most significant drop in Medicaid membership falling from 13.00 million to 12.52 million. Commercial membership, however, increased substantially from 4.81 million to 5.99 million. The company’s CEO stated: “As we look to 2026, we are positioned to deliver meaningful margin improvement and renewed adjusted diluted EPS growth. We expect full year 2026 adjusted diluted EPS to be greater than $3.00.”
The company expects 2026 sales of $186.5 billion to $190.5 billion compared to consensus estimates of $193.43 billion, with premium revenues projected between $170 billion and $174 billion. The health benefits ratio is expected to range between 90.9% and 91.7%. Centene shares closed down 5.87% at $37.57 at the time of publication on Friday.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.benzinga.com/markets/earnings/26/02/50458584/centene-takes-a-hit-as-medicaid-membership-shrinks