Will Centene's (CNC) Upbeat 2025 Outlook Offset Concerns Over Its Goodwill Impairment?

• Centene Corporation reported third-quarter 2025 financial results that exceeded analyst expectations for both revenue, which reached US$49.69 billion, and adjusted earnings, despite recording a US$6.7 billion non-cash goodwill impairment and a net loss of US$6.63 billion.
• Operational improvements in Medicaid, higher investment income, and strong Marketplace and Medicare segment performance led Centene to raise its full-year adjusted earnings outlook, signaling renewed confidence in its ongoing business fundamentals.
• With Centene raising its 2025 adjusted earnings guidance, we'll examine how this optimism could reshape its investment narrative.

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Centene Investment Narrative Recap

To be a shareholder in Centene, you need to believe in the resilience of its government-backed healthcare model and its ability to recover margins through operational improvements, especially in Medicaid and Marketplace segments. The recent strong revenue performance and upward revision of adjusted earnings guidance have shifted near-term sentiment positively, but the most important catalyst, Medicaid margin recovery, remains exposed to ongoing uncertainties in rate adjustments and medical cost inflation, while the biggest risk continues to be policy-related volatility. This news reinforces the business fundamentals, but policy developments could still play a material role in future earnings swings.

Among recent announcements, the updated full-year 2025 guidance stands out. Centene's move to raise its adjusted EPS outlook to at least US$2.00 per share directly supports investor focus on operational turnaround as a catalyst. This is particularly relevant given pressures from recent impairment charges and ongoing Medicaid rate discussions, signaling management's continued emphasis on restoring earnings quality and margin stability.

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Read the full narrative on Centene (it's free!)

Centene's outlook anticipates $195.6 billion in revenue and $2.1 billion in earnings by 2028. This is based on an annual revenue growth rate of 7.0% with earnings forecast to remain flat, showing no change from the current $2.1 billion in earnings.

Uncover how Centene's forecasts yield a $36.00 fair value, in line with its current price.

Exploring Other Perspectives

Sixteen Simply Wall St Community fair value estimates for Centene stretch from US$31.58 to US$169.67 per share. With ongoing regulatory risk around Medicaid and policy stability, it is clear that opinions on Centene's future and value can widely differ, explore several alternative viewpoints for a fuller view.

Explore 16 other fair value estimates on Centene - why the stock might be worth 11% less than the current price!

Build Your Own Centene Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Centene research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Centene research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Centene's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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