Centene (CNC) Q2 2025: Surprise Loss on Medicaid/ACA Costs, Revenue Beats; Stock Rebates on 2026 Outlook
Centene Q2 Loss Highlights Rising Costs Key Takeaways Centene posted a $253M Q2 loss , flipping from a $1.1B profit in 2024 . Medical cost ratio (MCR) surged to 93% , far exceeding Wall Street’s 89.3% forecast . Stock plunged 14.5% premarket, hitting a decade low and dragging down peers Elevance Health and Molina Healthcare . Loss drivers : Medicaid behavioral/home health costs, ACA risk-adjustment revenue cuts, and high-cost drugs . Corrective action : Premium hikes for 2026 ACA plans in "substantial majority" of states . The Earnings Shock Centene bled red. $253 million vanished in Q2. Last year? A crisp $1.1 billion profit . Premium revenue climbed to $42.5 billion, up 18%, but medical costs devoured it . The street expected an $0.86 per share profit. Instead, Centene coughed up a $0.16 loss . Analysts stared at their screens. Julie Utterback at Morningstar called the 93% medical cost ratio "surprisingly high" . All business lines burned. The ACA marketplace? Th...