Centene withdraws 2025 EPS guidance on $1.8 billion Marketplace risk adjustment hit
Centene withdrew its previously issued 2025 GAAP and adjusted diluted earnings per share guidance after preliminary Marketplace data showed a lower-than-expected market and higher morbidity. The company estimates a reduction of about $1.8 billion in its full-year net risk adjustment revenue transfer, an adjusted diluted EPS impact of about $2.75, and expects further reductions from its seven remaining Marketplace states, which lowers the earnings outlook shareholders were relying on.
- Withdraws previous 2025 GAAP and adjusted diluted EPS guidance, including underlying guidance elements, announced July 1, 2025
- Preliminary estimate of about $1.8 billion reduction to full-year net risk adjustment revenue transfer across 22 Marketplace states, with adjusted diluted EPS impact of about $2.75
- Medicaid second quarter 2025 Health Benefits Ratio expected to be higher than first quarter 2025 HBR
- Second quarter 2025 results expected to be reported on July 25, 2025