Centene Q3 Surprise Profit, Raises EPS After $6.7B Impairment

Centene reported third-quarter revenue of $49.69 billion and an adjusted profit of $0.50 per share, topping estimates and surprising the market after earlier expectations of a loss. Results were driven by stronger PDP membership, higher Medicaid premiums, Marketplace and commercial growth, and benefited from an unusually low effective tax rate. The company recorded a $6.7 billion non‑cash goodwill impairment that produced a GAAP net loss of $13.50 per share. Management raised full‑year 2025 adjusted EPS guidance by $0.25 to at least $2.00 (from about $1.75) and updated GAAP guidance to a diluted loss not exceeding $(12.85). Centene flagged higher medical costs (medical cost ratio 92.7%) and slightly lower Medicaid membership (~27.97 million), while SG&A leverage and free cash flow improved to $1.15 billion. Shares jumped roughly 8–12% on the news but remain down about 40–45% year‑to‑date after a steep July selloff tied to ACA‑exchange worries.