Centene projects adjusted EPS of over $3 for 2026, implying over 40% YoY growth, with premium and service revenue of $170-$174 billion and a consolidated HBR of 90.9%-91.7%. Medicaid showed improvement, while Marketplace membership base decreased. Medicare is being repositioned for break-even by 2027.

The company reported a Q4 adjusted diluted loss per share of $1.19, contributing to a full-year 2025 adjusted diluted EPS of $2.08. Full-year revenue totaled $174.6 billion. Centene anticipates a rebound in 2026 after a challenging 2025, focusing on improving Medicaid profitability and Marketplace margins.

Centene is strategically managing Medicaid costs with network optimization, new clinical programs, and a focus on reducing outlier costs. The company is deploying operational levers and an ABA task force to address behavioral health issues, aiming for stable Medicaid margins and improved Marketplace pre-tax margins in 2026.

The company expects ongoing Medicaid membership attrition, closing 2025 with 12.5 million members. Medicaid trends, including flu-related costs, remain consistent with expectations. Centene foresees a decline in Medicaid member months in 2026. Marketplace segment experienced changes post-EAPTC expiration, impacting membership and pricing.

Management emphasized a shift in metallic tier mix in the Marketplace segment and expects meaningful pre-tax margin expansion in 2026. Centene aims for Medicare Advantage break-even by 2027, with strong results in 2025. Part D enrollment is tracking high single-digit growth in 2026, with revenue driven by PDP.

Centene guided to a consolidated 2026 HBR of 90.9% to 91.7%, driven by Marketplace recovery. Costs and capital structure are well-managed, with earnings seasonality expected in 2026. The company emphasizes stable Medicaid margins and ongoing improvements in Marketplace and Medicare segments.

Read more at Yahoo Finance: Centene Q4 Earnings Call Highlights