Centene Reports Strong Q1 2025 Results, Boosts Revenue Guidance

Centene Corporation, a major player in the managed care sector, has reported robust financial results for the first quarter of 2025, surpassing Wall Street expectations and prompting an increase in its full-year revenue guidance. The company's performance underscores its resilience in a dynamic healthcare landscape and signals continued growth in key market segments.

Q1 Financial Highlights

Centene posted impressive numbers for the quarter ending March 31, 2025:

• Revenue: $46.6 billion, up from $40.4 billion in Q1 2024
• Net earnings: $1.3 billion, slightly higher than the $1.2 billion reported in the same quarter last year
• Earnings per share: $2.63, exceeding analysts' expectations of $2.36
• Medical loss ratio: 87.5%, in line with industry peers

The company's strong performance was attributed to growth across its diverse portfolio of health plans and services. Centene's CEO, Sarah London, stated, "Our first quarter results demonstrate the resiliency of Centene's platform and the progress we are making as an organization while navigating a dynamic policy landscape."

Membership Growth and Market Expansion

As of March 31, 2025, Centene reported a total membership of 27.9 million individuals across its various health plans:

• Medicaid: Nearly 13 million enrollees
• Affordable Care Act (ACA) marketplace plans: 5.6 million members
• Medicare Advantage and supplement plans: Approximately 1 million beneficiaries
• Medicare prescription drug plans: 7.7 million enrollees

The company also highlighted key contract wins and extensions during the quarter, including:

• A renewed contract to serve Nevada's Medicaid managed care program
• An extended Medicaid relationship in Illinois

These developments reinforce Centene's position as a leading managed care organization and demonstrate its ability to maintain and expand its presence in critical markets.

Revised 2025 Outlook

Based on its strong Q1 performance, Centene has increased its revenue guidance for the full year 2025:

• New revenue projection: $164 billion to $166 billion, a $6 billion increase from previous estimates
• Earnings guidance: Reaffirmed at a minimum of $7.25 per share

The company attributed the upward revision primarily to outperformance in enrollment for both ACA marketplace plans and Medicare Advantage programs. This adjustment reflects Centene's optimism about its growth trajectory and its ability to capitalize on opportunities in the evolving healthcare market.