Molina Healthcare missed Q4 adjusted EPS estimates

Molina Healthcare

05/02/2026 21:25

Overview

Healthcare provider's Q4 adjusted EPS missed analyst expectations

Company's full year premium revenue rose 11% yr/yr, driven by acquisitions and rate increases

Company issued 2026 guidance with premium revenue expected to decline slightly

Outlook

Molina Healthcare expects full-year 2026 premium revenue of approximately $42 bln

Company anticipates full-year 2026 adjusted EPS of at least $5.00

Molina Healthcare plans to exit Medicare Advantage Part D in 2027

Result Drivers

RETROACTIVE REVENUE ADJUSTMENTS - Q4 results were burdened by $2.00 per share of unfavorable retroactive premium adjustments, particularly in the Medicaid business in California

HIGH MEDICAL COSTS - Continued high levels of utilization in Medicaid and Medicare increased medical costs, impacting the medical care ratio

ACQUISITIONS AND RATE INCREASES - Full-year premium revenue rose 11% due to recent acquisitions, rate increases, and organic growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Premium Revenue
$10.72 bln
Q4 Adjusted EPS
Miss
- $2.75
$0.33 (15 Analysts)
Q4 EPS
-$3.15


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the managed healthcare peer group is "buy."

Wall Street's median 12-month price target for Molina Healthcare Inc is $172.00, about 3.4% below its February 4 closing price of $178.04

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw2p7cBsa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)