Molina implodes after earnings miss, gloomy guidance
Molina Healthcare tanked after it reported earnings results that missed Wall Street expectations and gave disappointing full-year guidance.
For the last three months of 2025, Molina reported:
An adjusted loss per share of $2.75, compared to the $0.34 earnings per share analysts polled by FactSet were expecting. The company said about $2 per share of its earnings miss was due to “retroactive premium adjustments attributable to the Company’s Medicaid business in California and ongoing medical cost pressure in Medicare and Marketplace.”
Revenue of $11.3 billion, compared to the $10.8 billion the Street was penciling in.
A medical cost ratio of 94.6%, higher than the 93.1% analysts expected.
For the full year in 2026, Molina expects:
Adjusted earnings per share of at least $5.00, compared to the $13.66 analysts had forecast. Molina said its guidance takes into account ongoing losses in its traditional Medicare Advantage Part D business, which it now plans to exit in 2027.
Revenues of about $42.2 billion, compared to the $46.6 billion analysts had penciled in.
Its medical cost ratio to sit at 92.6%, while analysts had expected 91.4%.
Health insurers have been under pressure for the past year amid rising health costs. Molina, one of the largest providers of ACA Marketplace plans, has taken a hit as tax credits for the program lapsed in January.
Molina’s report also dragged down competitors, including Centene, which is also a major provider of ACA plans and reports earnings Friday morning.
