Centene Corporation (CNC) FY2025 10-K Annual Report

Filed: Feb 17, 2026
Financials
Hospital & Medical Service PlansSEC EDGAR

Centene Corporation (CNC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Centene Corporation FY2025 10-K Analysis

Business Overview

  • Core business model not directly described; document is primarily governance and regulatory disclosures
  • No new products, services, or segments introduced or emphasized in this section
  • Strategic shifts or competitive positioning not addressed in this text
  • Independent auditor for FY 2026 confirmed as KPMG LLP, Auditor Firm ID 185
  • Filing mainly references Proxy Statement for detailed governance, executive compensation, and ownership information

Management Discussion & Analysis

  • Revenue details not explicitly provided; 2025 Medicaid membership 12.5M, Marketplace 5.5M, Medicare Advantage 1.0M, PDP 8.1M members
  • No direct profitability or margin % figures disclosed in the text
  • Best segments by membership: Medicaid 12.5M members, weakest not specified
  • Capital allocation specifics (buybacks, dividends, capex) not detailed; $1.3B Magellan Rx divestiture gain $269M pre-tax; other divestitures totaling ~$1.6B in proceeds and related gains
  • Forward outlook: 2026 Marketplace morbidity expected to increase; medical costs rising accelerated by policy and market changes; OBBBA impacts Medicaid eligibility and funding by 2027; CMS Medicare risk-sharing adjustments and integrated D-SNP requirement beginning 2027

Risk Factors

  • CMS audit intensification risk with expanded risk adjustment data validation audits since 2025, potentially causing premium refunds and reducing revenue materially
  • Texas and Georgia Medicaid reprocurement loss risk, involving protests due to unsuccessful bidding, threatening contract renewals and associated revenues
  • Elevated medical cost risk from 2025 Marketplace membership with unexpectedly higher morbidity reducing net risk adjustment revenue significantly
  • Part D bid risk from IRA-induced increased costs and enrollment volatility, with PDP membership boosted to 8.7 million in 2026 due to below-benchmark bids
  • Medicare Advantage Star ratings risk with 40% of membership below 3.5 stars and contract terminations notices for 2025 impacting profitability and contract retention

Centene Corporation FY2025 Key Financial Metrics
XBRL

Revenue

$174.6B

+20.0% YoY

Net Income

-$6.7B

-301.9% YoY

Gross Margin

8.1%

-359bp YoY

Operating Margin

-4.4%

-655bp YoY

Net Margin

-3.8%

-609bp YoY

ROE

-33.4%

-4596bp YoY

Total Assets

$76.7B

-6.9% YoY

EPS (Diluted)

$-13.53

-314.4% YoY

Operating Cash Flow

$5.1B

+3203.9% YoY

Source: XBRL data from Centene Corporation FY2025 10-K filing on SEC EDGAR. All figures in USD.

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