Q4 2025 Centene Corp Earnings Call Transcript
Key Points
- Centene Corp (CNC) reported a fourth quarter adjusted diluted loss per share of $1.19, but full year 2025 adjusted diluted EPS of $2.08, slightly ahead of expectations.
- Medicaid profitability improved, with a health benefits ratio of 93.0% in Q4, showing significant progress and momentum.
- The company expects full year 2026 adjusted EPS to be greater than $3, representing over 40% year-over-year growth.
- Centene Corp (CNC) anticipates meaningful margin recovery within its marketplace business and continued progress towards breakeven in Medicare Advantage.
- The company has been proactive in addressing fraud and optimizing networks, which has contributed to cost management and quality improvement.
- Centene Corp (CNC) faced a challenging 2025, with a fourth quarter GAAP diluted loss per share of $2.24 due to a $389 million net loss from divesting the remaining Magellan business.
- The Marketplace segment experienced a higher than expected health benefits ratio due to costs related to the No Surprises Act and a 2023 CMS reconciliation.
- Medicaid membership is expected to decline by 5% to 6% in 2026, impacting revenue.
- The company anticipates a pressured view of Medicare rates for 2027, which could affect future profitability.
- Centene Corp (CNC) faces ongoing challenges with policy-related variability influencing its core business lines.
Good day, and welcome to the Centene Corporation fourth quarter and full year 2025 earnings conference call. (Operator Instructions) Please note today's event is being recorded.
I would now like to turn the conference over to Jennifer Gilligan, Senior Vice President, Investor Relations. Please go ahead.
Thank you, Rocco, and good morning, everyone. Thank you for joining us on our fourth quarter and year end 2025 Earnings Results Conference Call. Sarah London, Chief Executive Officer; and Drew Asher, Executive Vice President and Chief Financial Officer of Centene, will host this morning's call, which also can be accessed through our website at centene.com. Also, guidance slides can be found on our website alongside the webcast.
Any remarks that Centene may make about future expectations, plans and prospects constitute forward-looking statements for the purpose of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Specifically, our
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