By Connor Hart

Centene swung to a fourth-quarter loss despite logging higher revenue, as the company continues working to restore profitability and stabilize its Medicaid business.

The managed-care company on Friday posted a loss of $1.1 billion, or $2.24 a share, compared with a profit of $283 million, or 56 cents a share, a year earlier.

Stripping out certain one-time items--such as a $513 million impairment charge tied to the divestiture of its remaining Magellan Health businesses--Centene reported a loss of $1.19 a share. Analysts polled by FactSet expected an adjusted loss of $1.22 a share.

Revenue climbed 22% to $49.73 billion, topping the $48.39 billion that Wall Street modeled.

Premium and service revenue increased 23% to $44.7 billion. The company attributed the increase to premium yield and membership growth in its Medicare Prescription Drug Plan business, overall market growth in its marketplace business, and rate increases and state-directed payments in its Medicaid business.

Centene's health-benefits ratio, a measure of how much was paid out to cover enrollees' medical expenses, was 94.3%, up from 89.6% a year earlier and just ahead of analyst views for a medical-cost ratio of 94.1%.

Chief Executive Sarah London said the company ended the year with some momentum, thanks to "the extensive and decisive actions taken in the back half of 2025 with the goal of restoring Marketplace profitability and stabilizing the trajectory of our Medicaid business."

Looking forward, Centene is positioned to deliver margin improvement and adjusted earnings growth in 2026, London added.

The company guided for earnings of at least $1.98 a share in 2026, or at least $3 a share on an adjusted basis. Analysts are looking for earnings of $2.30 a share and adjusted earnings of $2.95 a share.

Revenue for the year is projected to come in between $186.5 billion and $190.5 billion, compared with analyst views for $194.09 billion.

Shares ebbed 2.9% to $38.77 in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 06, 2026 06:49 ET (11:49 GMT)

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