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Centene stock crashes 40% as enrollments drop and costs surge, 2025 outlook pulled

Centene stock took a major hit as the healthcare company pulled its 2025 earnings outlook, sending shares crashing to their lowest point since 2017. Centene, known for its Medicaid and Affordable Care Act (ACA) coverage, revealed that slower enrollment growth and higher-than-expected patient illness would cut $2.75 per share off its earnings. The update slashed its projected revenue by $1.8 billion, causing widespread analyst downgrades. Centene also announced it would reprice its 2026 marketplace plans to reflect these unexpected costs. This sudden shift has left investors and analysts worried about the future of healthcare stocks in the ACA market. Tired of too many ads? Remove Ads Why did Centene pull its 2025 outlook? How much will Centene earnings drop in 2025? Tired of too many ads? Remove Ads What's happening with Centene's enrollments and federal reimbursements? How are analysts reacting to Centene's surprise guidance withdrawal? Centene stock sees sharpest fall in years Recent performance snapshot: Metric Value Latest Price $34.42 Day's High $43.14 Day's Low $33.97 Opening Price $37.44 Volume ~53.8 million shares YTD Performance Approx. -15% 52-Week Range $33.97 – $80.59 Forward P/E Ratio Around 4.7 Why is Centene stock falling so fast? Outlook withdrawn : Centene pulled its full-year 2025 earnings forecast, citing higher-than-expected patient illness and a sharp slowdown in ACA enrollment growth. : Centene pulled its full-year 2025 earnings forecast, citing higher-than-expected patient illness and a sharp slowdown in ACA enrollment growth. Earnings cut : The company warned of a $2.75 per share cut , translating to a $1.8 billion impact on its 2025 results. : The company warned of a , translating to a on its 2025 results. Downgrades: Analysts reacted quickly, downgrading the stock and lowering price targets due to rising uncertainty in ACA-related margins and risk pool assumptions. What does this mean for the healthcare insurance industry? Tired of too many ads? Remove Ads Can Centene bounce back? FAQs: Centene stock plunged to its lowest point since 2017 after the healthcare giant pulled its 2025 earnings guidance and revealed unexpected enrollment trends and rising patient costs. The managed-care company, which primarily provides Medicaid and Affordable Care Act (ACA) plans, now expects 2025 adjusted earnings to be $2.75 per share lower than previously forecasted—wiping out about $1.8 billion from its outlook. This sudden shift triggered panic on Wall Street, causing Centene (CNC) shares to lose nearly a third of their value in early trading, making it the worst-performing stock in the S&P 500 on decision to scrap its full-year guidance was driven by new internal data from 22 of its 29 ACA marketplaces. The data showed that membership growth was slower than expected, and more critically, the health status of new enrollees was significantly worse than mismatch impacted the company's risk adjustment revenue assumptions—a key factor in calculating federal reimbursements under ACA programs. As a result, Centene warned that these unexpected shifts would have a $1.8 billion negative impact on next year's in April, Centene had forecast 2025 adjusted earnings per share (EPS) of over $7.25. But after analyzing the new risk pool data, the company slashed its forecast by $2.75 per share, bringing the revised estimate closer to $4.50 is a massive revision for a company that has been a dominant player in Medicaid and ACA coverage. It also reflects deeper structural challenges in the healthcare insurance sector—especially around pricing plans to cover sicker-than-expected reported that enrollment growth has slowed sharply. Meanwhile, the health profile—or morbidity rate—of many of its newly enrolled members is far worse than anticipated. This means patients are using more care, which increases costs, while risk adjustment payments from the federal government may not be enough to offset that adapt, Centene is now refiling its 2026 rate proposals, adjusting for a 'higher projected baseline of Marketplace morbidity,' a clear signal that this trend isn't just market's reaction was swift and brutal. Centene stock sank to levels not seen since 2017, and several analysts quickly downgraded the stock. Both Jefferies and UBS lowered their price targets, citing concerns over earnings visibility, growing uncertainty in ACA margins, and potential further deterioration in enrollment isn't the first time a major healthcare provider has run into trouble this year. Earlier in 2025, UnitedHealth Group (UNH) also trimmed its forecast due to higher-than-expected medical Corp. (CNC) is currently trading around, marking a massive drop of nearly. This crash came after the company pulled its 2025 earnings guidance due to rising costs and slower enrollment growth. Earlier in the day, the stock hit an intraday low of, itsCentene's situation reflects a broader challenge facing companies in the Affordable Care Act and Medicaid markets. As patient health trends shift and federal reimbursement models lag behind, insurers are struggling to balance premium pricing, risk pool assumptions, and real-world company's move to re-price its 2026 plans shows it's taking corrective action, but it also underlines how volatile the business can be when market assumptions break leadership didn't offer a revised full-year forecast but made it clear that the 2025 results will fall short. Investors will now be watching closely to see how the company adjusts its future pricing and risk models—and whether it can restore now, though, the sharp drop in Centene stock reflects deeper anxiety across the healthcare insurance sector, particularly among those who rely heavily on ACA marketplaces. With policy changes and patient trends evolving quickly, this may not be the last shake-up we see in the stock dropped after it pulled its 2025 earnings forecast due to lower enrollments and higher patient slashed its 2025 EPS by $2.75, wiping out $1.8 billion in projected earnings.