Companies

Molina Reaffirms 2026 Outlook After Third-Quarter Earnings Drop

The Tip Desk · October 26, 2026 · 3 min read

GAAP earnings fell to $0.73 a share as the medical care ratio reached 92.9%, while the company kept full-year adjusted earnings at least $5.25 a share.

Molina Healthcare (MOH), a managed-care provider in Medicaid, Medicare and state marketplaces, reported third-quarter 2026 GAAP income of $38 million, or $0.73 a share, a 52% year-over-year decline. Adjusted net income was $46 million, or $0.89 a share.

The year-over-year drop in GAAP earnings slowed from the 76% decline recorded in the second quarter. The company attributed the third-quarter decrease mainly to a higher consolidated medical care ratio.

Premium revenue was $10,457 million, down 4% from a year earlier, after a 6% year-over-year decline in the second quarter. Molina said the lower premium reflected lower membership in Medicaid and Marketplace, partially offset by rate updates. Total revenue was $11,082 million.

The consolidated MCR rose to 92.9% in the third quarter from 92.2% in the second quarter. Medicaid MCR was 93.0%, which the company said was in line with expectations and reflected rate updates and a stable medical cost trend. Medicare MCR was 93.0%, also in line with expectations and reflecting a stable medical cost trend. Marketplace MCR was 92.5%, which Molina said was in line with normal seasonality and its expectations.

GAAP G&A ratio was 6.4% and adjusted G&A was 6.3%, down from 6.7% and 6.5% in the second quarter. GAAP pre-tax margin was 0.5%; adjusted pre-tax margin was 0.6%.

Ending membership was 4,862,000 at September 30, 2026, versus 5,628,000 at September 30, 2025. Medicaid membership was 4,372,000, Medicare 222,000 and Marketplace 267,000. Medicaid premium revenue was $8,199 million. Marketplace premium revenue was $642 million.

President and Chief Executive Officer Joseph Zubretsky said the company was pleased with third-quarter results in a challenging environment and reaffirmed full-year guidance.

Molina reaffirmed full-year 2026 premium revenue of approximately $42 billion and adjusted earnings of at least $5.25 a share, the level it had raised by $0.25 in the second-quarter release. Full-year GAAP earnings guidance is at least $2.38 a share. Guidance metrics across all segments were also reaffirmed.

Full-year earnings guidance includes a $1.50 a share loss from implementation of a new Florida Medicaid contract in the fourth quarter of 2026 and a $1.00 a share loss from performance of the traditional MAPD product, which the company previously said it will exit for 2027.

Zubretsky said that with the apparent plateauing of medical cost trend, which remains at elevated levels, and the strength of recent rate updates for 2027, the company believes it is likely observing the beginning of the turn in Medicaid margins.

Cash and investments at the parent company were approximately $608 million as of September 30, 2026, compared with approximately $290 million at June 30, 2026. Days in claims payable was 44, consistent with June 30, 2026.

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MOLINA HEALTHCARE, INC. — all coverage and financials