EL7.AI
StocksMedium•21 October 2026•
2 min read

Molina's adjusted profit falls 53% as medical costs rise

Key Facts

1Molina's adjusted net income fell 53% year on year, primarily because of a higher medical care ratio.
2The consolidated ratio of medical care costs to premium revenue was 92.9%.
3Molina shares fell 4.6% following the results announcement, according to Investing.com.
4The company maintained its annual premium revenue forecast at about $42 billion.
5Molina reaffirmed its annual adjusted earnings forecast of at least $5.25 per share.

Molina Healthcare reported a 53% year-on-year decline in adjusted net income in the third quarter of 2026, attributing the drop primarily to a higher medical care ratio. Adjusted diluted earnings per share were $0.89, compared with $1.84 in the corresponding period of 2025 and $1.51 in the second quarter of 2026, according to company disclosures. GAAP diluted earnings per share were $0.73. Total revenue was $11,082 million for the quarter. Despite the decline in profit, adjusted earnings exceeded analysts' estimate of $0.79 per share by $0.10, according to Investing.com. Revenue also topped analysts' expectations of $10.86 billion, according to the website.

The consolidated ratio of medical care costs to premium revenue was 92.9% in the third quarter, according to Molina's statement. The ratio stood at 92.2% in the previous quarter and 92.6% in the corresponding period a year earlier, according to its disclosures for those periods. Premium revenue fell 4% year on year, which the company attributed to lower Medicaid and health insurance marketplace membership. Rate updates partly offset the impact of lower membership on premium revenue. Molina served about 4.9 million members at the end of September 2026. The company provides managed healthcare services through Medicaid, Medicare and state insurance marketplaces.

Molina shares fell 4.6% following the results announcement on October 21, 2026, as investors focused on the challenging operating environment and pressure on margins, according to Investing.com. The chief executive said the company could see "the beginning of a turnaround in Medicaid margins." Molina maintained its 2026 premium revenue forecast at about $42 billion. It also reaffirmed its annual adjusted earnings forecast of at least $5.25 per share. The guidance includes a loss of $1.50 per share related to the implementation of its new Florida Medicaid contract in the final quarter of 2026. It also includes a loss of $1.00 per share from its traditional Medicare Advantage product that includes prescription drug coverage, which the company has decided to exit in 2027. Molina is scheduled to hold its earnings call on October 22, 2026, at 8:00 a.m. Eastern Daylight Time.