Core Insights - Health Net, a Medi-Cal managed care health plan under Centene Corporation, partnered with the Pro Football Hall of Fame to host two events in Sacramento: "Salute to Service" and "Strong Youth, Strong Communities" to honor local heroes and inspire youth ahead of Super Bowl Sunday [1][11] Group 1: Salute to Service Event - The "Salute to Service" event recognized healthcare professionals serving vulnerable communities in Sacramento, highlighting the critical work of WellSpace Health, a non-profit community health system [2][4] - Amber Kemp, VP of Medi-Cal Strategy at Health Net, emphasized the importance of community support and honoring healthcare heroes to inspire youth [3] - The event featured Pro Football Hall of Famers and local leaders, providing WellSpace Health employees with opportunities for engagement and recognition [6] Group 2: Strong Youth, Strong Communities Event - The "Strong Youth, Strong Communities" assembly at River City High School engaged over 2,000 students with motivational talks from professional athletes and community leaders, focusing on life skills and leadership [7][10] - Darrell Green, a Pro Football Hall of Famer, highlighted the importance of mental health discussions for youth empowerment [8] - River City High School Principal Jacob Geivett expressed gratitude for the partnership, emphasizing the positive impact of the event on students' resilience and future potential [10] Group 3: Organizational Background - Health Net has been operating in California for over 45 years, providing health plans for various demographics, including those eligible for Medi-Cal and Medicare, serving over three million members [12] - WellSpace Health serves 125,000 individuals annually through various health services, demonstrating a commitment to vulnerable populations in Sacramento and Placer counties [13]

Financial Data and Key Metrics Changes - The company reported a fourth quarter adjusted diluted loss per share of $1.19, contributing to a full year 2025 adjusted diluted EPS of $2.08, which was slightly ahead of expectations outlined in the previous quarter [7][8] - The fourth quarter GAAP diluted loss per share was $2.24, including a $389 million net loss from the divestiture of the remaining Magellan business [40][41] - The company anticipates full year 2026 adjusted EPS to exceed $3, representing over 40% year-over-year growth [10] Business Line Data and Key Metrics Changes - Medicaid's health benefits ratio (HBR) improved to 93.0% in Q4, showing a 40 basis points sequential improvement and a 190 basis points improvement from Q2 levels [12][42] - The Marketplace segment's HBR was about a point higher than forecasted, with slight improvements in medical cost trends [44] - The Medicare segment delivered strong results, with expectations for membership growth in the PDP business and a focus on achieving break-even in Medicare Advantage by 2027 [28][29] Market Data and Key Metrics Changes - The company closed 2025 with approximately 12.5 million Medicaid members, with expectations for a 5%-6% decline in member months in 2026 [43][52] - Marketplace membership is projected to be around 3.5 million by the end of Q1 2026, down from 5.5 million in December [24][53] - Medicare segment revenue is expected to grow by approximately $7.5 billion, driven by premium yield increases and membership growth [54] Company Strategy and Development Direction - The company is focused on restoring Medicaid business to sustainable profitability while enhancing quality outcomes for members [11] - Key strategies include optimizing networks, implementing new clinical programs, and increasing vigilance against fraud [13][16] - The company is leveraging data and technology, including AI, to improve operational efficiency and member engagement [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the 2026 outlook, citing positive momentum and opportunities for margin expansion [38] - The company acknowledged the challenges faced in 2025 but emphasized the strength gained from navigating those challenges [36] - Management highlighted the importance of proactive engagement with state partners to address rate adjustments and program reforms [100][102] Other Important Information - The company ended 2025 with approximately $400 million in cash available for corporate use and reduced debt by $189 million, resulting in a debt-to-cap ratio of 46.5% [50] - The adjusted SG&A expense ratio for Q4 was 7.5%, bringing the full year to 7.4%, reflecting continued discipline and scale [50] Q&A Session Summary Question: Medicaid rate expectation for 4.5% - Management explained that the 4.5% rate assumption is prudent, considering the favorable maturation of 2025 rates and ongoing efforts to bend trend [63][64] Question: Trend comparison for 2025 and 2026 - Management indicated that the 2025 trend was in the mid-6s, while the 2026 assumption is a net trend of mid-4s, reflecting aggressive actions taken in the latter half of 2025 [67][69] Question: Confidence in exchange member dynamics - Management expressed confidence in margin improvement for the Marketplace segment, citing improved visibility and historical data to support pricing strategies [75][84] Question: Incremental decline in Medicaid membership - Management acknowledged slight attrition in membership and discussed the impact of state eligibility tightening and program changes on future membership [86][89] Question: Actuarial soundness lookback process - Management emphasized the importance of shortening the lookback period and maximizing the inclusion of recent data in the actuarial process to inform rate adjustments [95][100] Question: Segment margins in 2026 guidance - Management provided insights into expected margins, indicating opportunities for improvement across all business lines, with specific targets for Medicaid, Marketplace, and Medicare segments [104][105]

Financial Data and Key Metrics Changes - The company reported a fourth quarter adjusted diluted loss per share of $1.19, contributing to a full year adjusted diluted EPS of $2.08 for 2025, which was slightly ahead of expectations [6][7][38] - The fourth quarter GAAP diluted loss per share was $2.24, including a $389 million net loss from divesting the remaining Magellan business [38] - The company anticipates full year 2026 adjusted EPS to exceed $3, representing over 40% year-over-year growth [8][58] Business Line Data and Key Metrics Changes - Medicaid's health benefits ratio (HBR) improved to 93.0% in Q4, showing a 40 basis points sequential improvement and 190 basis points improvement from Q2 levels [10][40] - The Marketplace segment's HPR was about a point higher than forecasted, with medical cost trends slightly better than expectations in Q4 [42] - The Medicare segment delivered strong results, with Q4 fundamentals in line with expectations, and the company aims for break-even in Medicare Advantage by 2027 [26][27][46] Market Data and Key Metrics Changes - The company closed 2025 with approximately 12.5 million Medicaid members, with expectations of a 5%-6% decline in member months for 2026 [41][51] - Marketplace membership is projected to be around 3.5 million by the end of Q1 2026, down from 5.5 million in December [22][52] - Medicare segment premium revenue is expected to grow by approximately $7.5 billion, driven by the PDP business and membership growth [53] Company Strategy and Development Direction - The company is focused on restoring Medicaid to sustainable profitability while improving quality outcomes for members [9] - Key levers for Medicaid improvement include optimizing networks, implementing clinical programs, and enhancing fraud detection [11][14] - The company is integrating data and AI into operations to enhance efficiency and member experience [32][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was challenging but expressed confidence in the ability to execute against the 2026 outlook, with expectations for margin expansion [36] - The company is proactively engaging with state partners to ensure appropriate rate adjustments and program reforms [99][102] - Management emphasized the importance of data-driven decisions and the need for timely adjustments to rates based on recent trends [100][102] Other Important Information - The company ended 2025 with about $400 million in cash available for corporate use and reduced debt by $189 million, resulting in a debt-to-cap ratio of 46.5% [48] - The adjusted SG&A expense ratio for Q4 was 7.5%, bringing the full year to 7.4%, reflecting continued discipline [48] Q&A Session Summary Question: Medicaid rate expectation for 4.5% - Management explained that the 4.5% rate assumption is prudent, considering the favorable maturation of 2025 rates and ongoing efforts to manage trends [63][65] Question: Trend comparison for Medicaid in 2025 - Management indicated that the 2025 trend was in the mid-6s, with the 2026 assumption reflecting a net trend of mid-4s based on recent performance [67][69] Question: Confidence in exchange member dynamics - Management expressed confidence in margin improvement for exchanges, citing improved visibility and historical data to support pricing strategies [76][78] Question: Membership attrition in Medicaid - Management discussed expectations for continued attrition in membership, considering state eligibility tightening and program changes [88][90] Question: Actuarial soundness lookback process - Management highlighted efforts to shorten the lookback period for actuarial adjustments and the importance of recent data in rate negotiations [96][98] Question: Segment margins in 2026 guidance - Management provided insights into expected margins, indicating opportunities for improvement across all business lines, with specific targets for Medicaid and Medicare segments [105][106]

Financial Data and Key Metrics Changes - The company reported a fourth quarter adjusted diluted loss per share of $1.19, contributing to a full year 2025 adjusted diluted EPS of $2.08, which was slightly ahead of expectations outlined in the previous quarter [4][22] - The fourth quarter GAAP diluted loss per share was $2.24, including a $389 million net loss from the divestiture of the remaining Magellan business [22] - The company anticipates full year 2026 adjusted EPS to exceed $3, representing over 40% year-over-year growth [5][32] Business Line Data and Key Metrics Changes - Medicaid's health benefits ratio (HBR) improved to 93.0% in Q4, showing a 40 basis points sequential improvement and 190 basis points improvement from Q2 levels [6][22] - The Marketplace segment experienced a slight improvement in medical cost trends, with Q4 results better than expectations [10][24] - The Medicare segment delivered strong results, with fourth quarter performance in line with expectations, setting a solid foundation for 2026 [15][25] Market Data and Key Metrics Changes - The company closed 2025 with approximately 12.5 million Medicaid members, reflecting slight attrition [23] - Marketplace membership is expected to decline to around 3.5 million by the end of Q1 2026, down from 5.5 million in December [12][29] - Medicare Advantage revenue is projected to be flat from 2025 to 2026, with membership intentionally reduced [29] Company Strategy and Development Direction - The company is focused on restoring Medicaid business to sustainable profitability while maintaining quality outcomes for members [5][7] - There is a strong emphasis on leveraging data and technology, including AI, to enhance operational efficiency and member engagement [18][19] - The company aims to achieve break-even results in Medicare Advantage by 2027, with ongoing improvements in service and member experience [15][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year but expressed confidence in the company's ability to execute against the 2026 outlook [20][21] - The company expects continued margin expansion opportunities while keeping members at the center of its operations [21] - Management highlighted the importance of proactive engagement with state partners to ensure program sustainability and address cost pressures [34][38] Other Important Information - The company ended 2025 with approximately $400 million in cash available for corporate use and reduced debt by $189 million, resulting in a debt-to-cap ratio of 46.5% [27] - The medical claims liability totaled $20.5 billion, representing 46 days in claims payable, a decrease of 2 days compared to the previous quarter [28] Q&A Session Summary Question: Medicaid rate expectation for 2026 - Management explained that the 4.5% rate expectation for Medicaid is based on constructive conversations with state partners and reflects a prudent assumption given the data available [33][34] Question: Trend comparison for Medicaid in 2025 - Management indicated that the 2025 trend was in the mid-6s, and the 2026 assumption of mid-4s is a net trend expectation, considering the elevated baseline and actions taken in the latter half of 2025 [35][36] Question: Confidence in Marketplace margin improvement - Management expressed confidence in margin improvement for the Marketplace segment due to effective repricing and repositioning strategies, as well as favorable membership dynamics observed during open enrollment [39][40] Question: Membership attrition in Medicaid - Management acknowledged slight attrition in membership and discussed the impact of state eligibility tightening and program changes on future membership [43][44] Question: Actuarial soundness lookback process - Management emphasized the importance of shortening the lookback period for actuarial soundness and maximizing the inclusion of recent data in rate adjustments [46][49] Question: Segment margins in 2026 guidance - Management provided insights into expected margins across segments, indicating opportunities for improvement while noting that long-term targets are still being assessed due to ongoing policy changes [51][52]

Core Viewpoint - Centene has forecasted its 2026 profit to exceed Wall Street expectations, which stands in contrast to other peers that have indicated ongoing challenges due to high medical costs [1] Group 1 - Centene's profit forecast for 2026 is positioned above market expectations, highlighting a positive outlook for the company [1] - Other companies in the industry are facing persistent pressure from elevated medical costs, indicating a contrasting performance trend within the sector [1]

CENTENE CORPORATION 2026 GUIDANCE $7.5 $0 ($ IN BILLIONS) Medicaid $88 $34.5 $45 $4.5 Medicaid Com mercial Medicare Other Marketplace Medicare Advantage $174.6 $172.0 2026 Estimated Segment Premium & Service Revenue1 2026 Guidance Mid-point 2025 Actual Medicare PDP ($8.1) ($2.0) FEBRUARY 2026 Forward-Looking Statements All statements, other than statements of current or historical fact, contained in this presentation are forward-looking statements. Without limiting the foregoing, forward-looking statements ...

Core Insights - Centene reported a quarterly loss of $1.19 per share, which was better than the Zacks Consensus Estimate of a loss of $1.25, marking an earnings surprise of +4.76% [1] - The company generated revenues of $49.73 billion for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 3.08% and showing a year-over-year increase from $40.81 billion [2] Financial Performance - Over the last four quarters, Centene has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $48 billion, and for the current fiscal year, it is $2.89 on revenues of $191.31 billion [7] Market Position - Centene shares have declined about 3% since the beginning of the year, while the S&P 500 has only declined by 0.7% [3] - The Zacks Industry Rank for Medical - HMOs, which includes Centene, is currently in the bottom 7% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with management's commentary on the earnings call being particularly important [3][4] - The estimate revisions trend for Centene was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Core Insights - Centene reported a fourth-quarter loss despite an increase in revenue, indicating ongoing challenges in achieving profitability and stabilizing its Medicaid business [1] Financial Performance - The company experienced a loss in the fourth quarter, which contrasts with its higher revenue figures [1] Business Operations - Centene is actively working to restore profitability and stabilize its Medicaid operations, highlighting the focus on improving its core business segment [1]

Core Insights - Centene Corporation reported a GAAP diluted loss per share of $(13.53) for the full year 2025, primarily due to a goodwill impairment of $6.7 billion, while the adjusted diluted earnings per share (EPS) was $2.08 [1][19] - For 2026, the company expects adjusted diluted EPS to exceed $3.00, indicating a positive outlook for profitability and margin improvement [1] Financial Performance - Total revenues for Q4 2025 were $49.725 billion, a 23% increase from $36.296 billion in Q4 2024; full-year revenues reached $194.777 billion, up 20% from $145.505 billion in 2024 [1][12] - Premium and service revenues for Q4 2025 were $44.727 billion, compared to $36.296 billion in Q4 2024, driven by growth in the PDP and Marketplace businesses [1][12] - The health benefits ratio (HBR) for Q4 2025 was 94.3%, up from 89.6% in Q4 2024, while the full-year HBR was 91.9%, an increase from 88.3% in 2024 [1][12] Membership Trends - Total at-risk membership as of December 31, 2025, was 27.634 million, a slight decrease from 28.601 million in 2024; traditional Medicaid membership decreased to 10.933 million from 11.408 million [6] - Marketplace membership increased significantly to 5.541 million from 4.382 million in 2024, indicating strong growth in this segment [6] Operational Efficiency - The SG&A expense ratio for Q4 2025 was 7.5%, down from 8.9% in Q4 2024; the full-year SG&A expense ratio was also 7.4%, compared to 8.5% in 2024, reflecting improved expense management [1][12] - Cash flow from operations for the full year 2025 was $5.088 billion, driven by improved timing of pharmacy rebates and higher medical claims liabilities [1][19] Strategic Developments - In December 2025, Centene signed an agreement to divest the remaining Magellan Health businesses, resulting in non-cash impairment charges of $513 million [2][12] - The company has engaged in community support initiatives, including contributions to food banks and partnerships aimed at addressing housing insecurity [5][9]

Centene Corporation (NYSE:CNC) will release earnings for its first quarter before the opening bell on Friday, Feb. 6.Analysts expect the Saint Louis, Missouri-based company to report quarterly loss of $1.22 per share. That's up from 80 cents per share in the year-ago period. The consensus estimate for Centene's quarterly revenue is $48.35 billion (it reported $40.8 billion last year), according to Benzinga Pro.On Oct. 29, Centene reported better-than-expected third-quarter financial results.Shares of Centen ...