Molina Q2 Profit Plunges 76% on Membership Drop, But Raises 2026 Guidance
MOH sits 70% above its 52-week low of $121.06.
Summary
Molina Healthcare's Q2 net income crashed 76% to $60M ($1.19/share) from $255M a year ago, driven by a 6% drop in premium revenue and higher medical costs. Adjusted EPS of $1.51 beat the $1.39 consensus, but the headline miss on membership and margin pressure is stark. The company raised its full-year adjusted EPS guidance to at least $5.25, up $0.25, but that includes a $1.50/share loss from the new Florida Medicaid contract and a $1.00/share hit from the MAPD product it plans to exit in 2027. CEO Zubretsky called 2026 a trough year for Medicaid margins, betting on rate increases to restore profitability. This follows the earlier guidance raise headline, but the full earnings release reveals the depth of the membership decline and the drag from specific contracts. The stock may react to the mixed picture: a beat on adjusted EPS but a sharp GAAP decline and cautious outlook.
At the time of this announcement, MOH was trading at $206.26 on NYSE in the Life Sciences sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $121.06 to $244.89. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.