Centene Corporation Reports Strong Q1 2025 Results

Centene ( (CNC) ) has released its Q1 earnings. Here is a breakdown of the information Centene presented to its investors.

Centene Corporation is a leading healthcare enterprise that provides integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals across the United States. The company offers products to Medicaid and Medicare members, as well as individuals and families served by the Health Insurance Marketplace.

In its first quarter of 2025, Centene Corporation reported strong financial results with a significant increase in earnings. The company achieved a diluted EPS of $2.63 and an adjusted diluted EPS of $2.90, reflecting a 28% rise from the previous year. The company also saw a 17% increase in premium and service revenue, driven by growth in its Marketplace and Medicare Prescription Drug Plan (PDP) memberships.

Key financial highlights include total revenues of $46.62 billion and premium and service revenues of $42.49 billion. The health benefits ratio stood at 87.5%, and the SG&A expense ratio was reduced to 7.9%. Centene’s cash flow from operations was $1.51 billion, supported by net earnings and increased medical claims liabilities. The company also announced strategic expansions, including new contracts in Nevada and Illinois, which are expected to commence in 2026.

Centene’s management remains optimistic about future growth, reiterating its full-year 2025 adjusted diluted EPS outlook of greater than $7.25. The company has increased its premium and service revenues guidance by $6.0 billion, anticipating continued strong performance in its core businesses, particularly in the Marketplace and Medicare Advantage sectors.

Looking ahead, Centene is poised to capitalize on its robust platform and strategic initiatives to drive growth and deliver value to its stakeholders. The company’s focus on expanding its service offerings and enhancing operational efficiencies positions it well for sustained success in the evolving healthcare landscape.