Molina Healthcare Q1 premium revenue falls due to lower Medicaid membership

Molina Healthcare

22/04/2026 21:28

Overview

US managed healthcare provider's Q1 premium revenue fell 4% yr/yr due to lower Medicaid membership

Adjusted EPS for Q1 declined 61% yr/yr, impacted by impairment and contract expiration

Company reaffirmed full yr 2026 premium revenue and adjusted earnings guidance

Outlook

Molina Healthcare reaffirms 2026 premium revenue guidance of about $42 bln, down 2% from 2025

Company expects 2026 adjusted EPS of at least $5.00 and GAAP EPS of at least $1.90

Molina Healthcare plans to update 2026 guidance after second quarter results

Result Drivers

MEDICAID & MARKETPLACE MEMBERSHIP - Premium revenue declined due to lower Medicaid membership from market contraction and contract expiration, and decreased Marketplace membership from product and pricing strategy

MEDICARE ADVANTAGE IMPAIRMENT - Net income was reduced by a $93 mln impairment related to planned exit of Medicare Advantage-Part D product for 2027

MEDICAL COST TREND - Medical cost trend was modestly favorable to expectations, supporting MCR performance

Company press release: ID:nBw3Y3Nlta

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Premium Revenue
$10.17 bln
Q1 EPS
$0.27


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 15 "hold" and 2 "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 $144.00, about 4.6% below its April 21 closing price of $151.00

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 13 three months ago

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(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.)