Molina Healthcare Q3 premium revenue declines on lower Medicaid, Marketplace membership

Molina Healthcare

21/10/2026 21:23

Overview
US managed healthcare firm's Q3 premium revenue fell 4% yr/yr on lower Medicaid and Marketplace membership
Adjusted EPS for Q3 beat analyst expectations
Company reaffirmed full-year 2026 premium revenue and adjusted EPS guidance

Outlook
Molina reaffirms 2026 premium revenue guidance at about $42 bln
Company expects 2026 adj EPS of at least $5.25, GAAP EPS of at least $2.38
2026 earnings guidance includes $1.50/share loss from Florida Medicaid contract and $1.00/share loss from MAPD product

Result Drivers
MEMBERSHIP DECLINE - Co said lower Medicaid and Marketplace membership drove decrease in premium revenue
HIGHER MEDICAL COST RATIO - Co attributed lower net income to higher consolidated medical care ratio
RATE UPDATES AND COST TRENDS - Co said Medicaid MCR reflected rate updates and stable medical cost trend

Company press release: ID:nBw9NKGJMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Premium Revenue
 
$10.46 bln
 
Q3 Adjusted EPS
Beat
$0.89
$0.74 (17 Analysts)
Q3 EPS
 
$0.73
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 16 "hold" and 1 "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 $209.00, about 4.9% below its October 20 closing price of $219.72
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads
Oct 21 - Elevance Health Q3 adjusted EPS beats estimates, raises outlook
Oct 20 - Synchrony Financial's Q3 net earnings fall 17%

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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.)