Centene Reports Rare Loss, Withdraws 2025 Guidance

Centene Corporation reported a rare second-quarter loss of $253 million, or $0.51 per share, compared to a $1.1 billion profit a year earlier, marking its first quarterly loss since 2012. The adjusted loss came in at $0.16 per share, missing Wall Street expectations, as medical costs surged in Medicaid, Medicare, and ACA markets. The health benefits ratio rose to 93%, driven by higher spending on behavioral health, home health, expensive drugs, and lower-than-expected ACA risk adjustment revenue. Total membership fell to about 28 million, with declines across Medicaid and Medicare. Centene withdrew its 2025 guidance and announced plans to reprice all its marketplace books to address ongoing cost pressures. CEO Sarah London acknowledged the disappointing results but reaffirmed the company's focus on strategic adaptation and restoring earnings growth.