Centene reported a $6.6 billion loss in 2025’s third quarter but landed $49.7 billion in revenue, the company shared in its Oct. 29 earnings release.
The company cited the One Big Beautiful Bill Act and a dip in its stock as drivers behind a quantitative goodwill impairment analysis, which is a comparison of a reporting unit’s fair value and its book value. Centene noted a noncash goodwill impairment of $6.7 billion.
Revenues increased 18.2% year over year. The company also increased its full-year outlook, upping its forecast for adjusted diluted earnings per share by $0.25 to reach at least $2.
“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 CEO Sarah London. “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.”
The company’s medical loss ratio was 92.7%, up from the same period last year. Centene’s rationale for the increase aligned with what was outlined in its Q2 earnings statement. Centene attributed the jump to steeper ACA medical costs, Medicaid costs driven by behavioral and home health, lower estimated risk adjustment revenue for its exchange business, and shifts to Medicare Part D prescription drug plans stemming from the Inflation Reduction Act.
Centene’s total membership neared 28 million as of the end of Q3. Medicaid membership was down 2.8% year over year at 12.7 million members. Its Medicare population was 1 million, a 10.3% decrease. The company also had 6.3 million commercial members and 8 million Medicare prescription drug plan members.
