CNC stock sank more than 10% in pre-market trading after Centene’s Q revenue beat but earnings missed expectations.

Earnings Highlights

Centene reported second-quarter 2025 total revenues of $48.74 billion, up 22% year-over-year from $39.84 billion. 

• GAAP net loss of $253 million, or $(0.51) per share, versus EPS of $2.16 a year ago. 
• Adjusted diluted loss per share of $(0.16), compared with adjusted EPS of $2.42 in Q2 2024. 
• Premium and service revenues rose 18% to $42.5 billion, driven by membership growth and rate increases in Medicaid and Medicare PDP. 
• Health benefits ratio widened to 93.0% from 87.6%, reflecting higher medical costs across Medicaid (behavioral health, home care, specialty drugs) and reduced Marketplace risk-adjustment revenue. 
• SG&A expense ratio improved to 7.1% from 8.0%, benefiting from leveraging expenses over higher revenues and PDP growth.

Stock Market Reaction

CNC stock plunged over 10% in pre-market trading on July 25, opening around $23.44, down from the prior close of $26.76. After the release, shares remained weak in after-hours. 
Analysts cited the rare earnings miss and withdrawn 2025 guidance as catalysts for the sell-off. Several brokerages downgraded CNC to “Hold” or “Equal-Weight,” cutting price targets into the low-$30s.

Company Outlook

The company expects to provide updated guidance on its July 25 earnings call and is adjusting 2026 marketplace rates to better align with morbidity trends.

Centene withdrew its full-year 2025 guidance on July 2 after internal data showed slower ACA marketplace enrollments and worse-than-expected risk pools, trimming outlook by $1.8 billion of adjusted EPS. 

Management emphasized long-term strength in Medicaid, Medicare, and Individual Marketplace but acknowledged “urgent focus” on restoring earnings trajectory. 

What It Means for Investors

Factor	Implication
Valuation	Deeply oversold at ~10× expected 2025 adjusted EPS.
Risk	Elevated uncertainty around ACA enrollments and risk pools.
Analyst Sentiment	Mostly neutral to cautious—consensus rating: Hold.
Technical Signals	Mixed—short-term oversold bounce possible amid capitulation.
Investors considering CNC stock should weigh the upside of robust revenue growth and defensive healthcare exposure against persistent margin pressures and guidance uncertainty.

Closing Thoughts

Centene’s Q2 results underscore a tension between top-line expansion and profitability. With 2025 guidance pulled and analysts adjusting forecasts downward, CNC stock faces near-term headwinds. Watch for management’s updated outlook on the conference call and monitor Marketplace enrollment trends closely.