US healthcare insurance provider Centene Corporation (NYSE:CNC) stock surged on Wednesday after reporting a third-quarter 2025 adjusted earnings of 50 cents, beating the consensus loss of 14 cents per share, down from $1.62 a year ago.
Centene’s sales surged 18.2% year-over-year to $49.69 billion, exceeding the consensus estimate of $47.75 billion.
“Our third quarter results and increased full year outlook demonstrate tangible progress against the near-term milestones we laid out for investors in July,” said the CEO of Centene, Sarah London.
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The company's premium and service revenues climbed 22% to $44.89 billion, primarily fueled by premium and membership growth in the PDP business, overall market growth in the Marketplace business, and rate increases in the Medicaid business, partially offset by lower Medicaid membership.
Centene's Health Benefits Ratio (HBR) climbed to 92.7% in the quarter, up from 89.2% in the corresponding period last year.
Total membership across Centene's portfolio declined to 27.97 million from 28.64 million a year ago, predominantly due to a reduction in Medicaid membership from 13.07 million to 12.71 million.
Conversely, the company experienced strong membership growth in other key areas, with Marketplace enrollment increasing 29.5% to 5.83 million and Medicare PDP expanding 17.8% to 7.97 million.
Guidance: Centene raised fiscal 2025 adjusted earnings per share from $1.75 to $2.00 compared to the consensus of $1.68.
How To Buy Centene Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Centene’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Price Action: CNC stock is up 10.4% at $36.67 during the premarket session at the last check on Wednesday.
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