Centene Shares Surge on Stellar Quarterly Performance

Centene Corporation witnessed a dramatic resurgence in its stock value following unexpectedly robust quarterly results. The healthcare insurer delivered a powerful performance that surpassed revenue projections and exceeded adjusted earnings forecasts, achieving this feat despite absorbing a multi-billion dollar non-cash impairment charge.

Demonstrating strong faith in its ongoing operational momentum, Centene has raised its full-year guidance for adjusted earnings per share. Management now anticipates achieving at least $2.00 per share, a significant increase from the previous forecast of $1.75. This upward revision reflects confidence in both sustained core business performance and enhanced returns from investments.

Quarterly Results Exceed Expectations

The company's third-quarter 2025 report revealed impressive financial strength. Centene posted adjusted earnings of $0.50 per share, dramatically outperforming analyst expectations that had projected a loss of $0.21 per share. Revenue climbed to $49.69 billion, representing a 4.35% beat over estimates and marking a 22% year-over-year increase.

Three primary drivers fueled this growth: strategic expansion within Medicare services, increased Marketplace segment enrollment, and favorable Medicaid rate adjustments. These positive developments effectively offset reductions in Medicaid membership rolls.

Understanding the Goodwill Impairment

While operational performance shone, Centene recorded a substantial $6.7 billion goodwill impairment charge during the quarter. This accounting adjustment, triggered by market conditions observed in July 2025, resulted in a reported GAAP loss of $13.50 per share.

Should investors sell immediately? Or is it worth buying Centene?

However, this non-cash charge carries no impact on the company's fundamental operational health or cash generation capabilities. The impairment simply represents a technical accounting adjustment that aligns the recorded book value with current market valuations.

Key Performance Indicators:
* Adjusted EPS (Q3): $0.50 (versus expected -$0.21)
* Revenue Growth: +22% to $49.69 billion
* Operating Cash Flow: $1.4 billion
* Medical Care Ratio: 92.7% (compared to 89.2% previous year)

Navigating Ongoing Challenges

Despite the quarter's strong showing, Centene continues to face operational headwinds. The medical care ratio increased to 92.7%, primarily driven by elevated healthcare spending in both Medicaid and Marketplace business segments. Utilization rates across these areas remain at heightened levels.

Looking ahead to the fourth quarter, the company is preparing for potential cost increases within its Affordable Care Act operations. This anticipation stems from the possible expiration of ACA plan subsidies scheduled for late 2025. In a proactive response, Centene has already implemented premium increases for 2026 to help mitigate this potential financial pressure.

Following a challenging period that saw shares decline more than 45% year-to-date, this quarterly performance marks a potential inflection point for Centene. Market participants are clearly recognizing the underlying operational strength, looking beyond temporary accounting adjustments to reward the company's fundamental progress.