- 28% increase in adjusted diluted EPS to $2.90
- 17% growth in premium and service revenues to $42.5 billion
- New contract wins in Nevada and Illinois
Centene Corporation (CNC, Financial) has reported strong financial results for the first quarter of 2025, showcasing a significant increase in its key financial metrics. Adjusted diluted earnings per share (EPS) soared to $2.90, marking a 28% rise from $2.26 in the same period last year. This surge is attributed to robust membership growth in high-performing market segments.
The company recorded a 17% year-over-year increase in premium and service revenues, reaching $42.5 billion. This growth was primarily driven by a 29% increase in Marketplace membership and a 22% uptick in Medicare Prescription Drug Plan (PDP) membership compared to the first quarter of 2024.
In light of this performance, Centene raised its 2025 premium and service revenue guidance by $6.0 billion, setting it between $164.0 billion and $166.0 billion. The upward adjustment reflects strong Marketplace enrollment and solid Medicare Advantage retention.
Noteworthy developments during the quarter included securing contracts in Nevada for Medicaid managed care and the Marketplace public option, as well as a significant contract in Illinois for services to dual-eligible beneficiaries, starting January 2026. This expansion bolsters Centene's government program offerings through 2026 and beyond.
Despite the impressive growth, Centene reported a slight increase in its health benefits ratio to 87.5%, up from 87.1% year-over-year, primarily due to higher Medicaid costs related to influenza-like illnesses.
Operational efficiency improvements were evident with a decrease in the selling, general, and administrative (SG&A) expense ratio to 7.9%, reflecting cost management success amid an expanding membership base. Total cash flow from operations stood at a robust $1.5 billion.
