Molina Healthcare Reports Second Quarter 2026 Financial Results

Increases Full Year 2026 Earnings Guidance LONG BEACH, Calif.--(BUSINESS WIRE)--Jul. 22, 2026-- Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported second quarter 2026 GAAP income per diluted share of $1.19 and adjusted income per diluted share of $1.51. Financial results are summarized below: Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 (In millions, except per-share results) Premium Revenue $10,244 $10,868 $20,416 $21,496 Total Revenue $10,874 $11,427 $21,670 $22,574 GAAP: Net Income $60 $255 $74 $553 EPS – Diluted $1.19 $4.75 $1.46 $10.19 Medical Care Ratio (MCR) 92.2% 90.4% 91.6% 89.8% G&A Ratio 6.7% 6.2% 6.9% 6.6% Pre-tax Margin 0.8% 2.8% 0.6% 3.2% Adjusted: Net Income $77 $294 $197 $627 EPS – Diluted $1.51 $5.48 $3.86 $11.56 G&A Ratio 6.5% 6.1% 6.7% 6.4% Pre-tax Margin 1.0% 3.3% 1.3% 3.6% See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release. Quarter Highlights As of June 30, 2026, the Company served approximately 4.9 million members. Premium revenue was approximately $10.2 billion for the second quarter of 2026. Second quarter 2026 GAAP income per diluted share was $1.19 and adjusted income per diluted share was $1.51. The Company increased its full year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share. “Our second quarter results and full year guidance reflect solid performance in our Medicaid and Medicare segments,” said Joseph Zubretsky, President and Chief Executive Officer. “The imbalance between Medicaid rates and medical cost trend appears to have stabilized and is well positioned to be corrected with future rate increases. This reinforces our belief that 2026 is the trough year for Medicaid pretax margins. We remain confident in our disciplined approach to medical cost management and believe the premium and EPS building blocks position us well for profitable growth in 2027.” Premium Revenue Premium revenue was approximately $10.2 billion for the second quarter of 2026, a decrease of 6% year over year. The lower premium revenue reflects the impact of lower membership, partially offset by rate updates. Net Income GAAP net income for the second quarter of 2026 was $60 million, or $1.19 per diluted share, a decrease of 76% year over year. Adjusted net income for the second quarter of 2026 was $77 million, or $1.51 per diluted share, a decrease of 74% year over year. The decrease is attributed mainly to the lower premium revenues and increase in MCR. Medical Care Ratio (MCR) The consolidated MCR for the second quarter of 2026 was 92.2%. The Medicaid MCR for the second quarter of 2026 was 92.7% and in line with the Company’s expectation, reflecting rate updates and stable medical cost trend. The Medicare MCR for the second quarter of 2026 was 90.7% and better than the Company’s expectation, reflecting lower medical cost trend and pricing implemented for 2026. The Marketplace MCR for the second quarter of 2026 was 88.9% and higher than the Company’s expectations, reflecting prior year risk adjustment and program integrity initiatives and the impact of current year unfavorable member acuity mix. General and Administrative Expense Ratio The G&A ratio and the adjusted G&A ratio for the second quarter of 2026 were 6.7% and 6.5%, respectively, reflecting continued operating discipline. Balance Sheet Cash and investments at the parent company were approximately $290 million as of June 30, 2026, compared to $223 million as of December 31, 2025. Days in claims payable at June 30, 2026, was 44. Cash Flow Operating cash flow for the six months ended June 30, 2026, was $788 million, compared to an outflow of $112 million for the six months ended June 30, 2025. The increase compared to the prior year was driven mainly by the timing of government receivables and payables. 2026 Guidance Premium revenue guidance for the full year is unchanged at approximately $42 billion. The Company increased its full year 2026 GAAP earnings to at least $2.15 per diluted share and its full year 2026 adjusted earnings to at least $5.25 per diluted share. The increase to earnings guidance reflects first half performance in Medicaid. Based on developing medical cost trends, a $1.50 increase in earnings per share in Medicare is offset by a $1.50 decrease related to Marketplace. Excluding the downward revision in the Marketplace guidance, the full year guidance would have increased to $6.75 per share. Full year guidance includes a loss of $1.50 per share due to the implementation of the new Florida Medicaid contract in the fourth quarter of 2026 and a loss of $1.00 per share due to performance of the traditional MAPD product, which the Company previously announced it will exit for 2027. Conference Call Management will host a conference call and webcast to discuss Molina Healthcare’s second quarter ended June 30, 2026 results, at 8:00 a.m. Eastern Time on Thursday, July 23, 2026. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 8631129. A telephonic replay of the conference call will be available through Thursday, July 30, 2026, by dialing (855) 669-9658 and entering confirmation number 6469068. A live audio broadcast of this conference call will be available on Molina Healthcare’s investor relations website, investors.molinahealthcare.com. A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast. About Molina Healthcare Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit molinahealthcare.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This earnings release and the Company’s accompanying oral remarks contain forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements provide current expectations of future events based on certain assumptions, and all statements other than statements of historical fact contained in this earnings release and the Company’s accompanying oral remarks may be forward-looking statements. In some cases, you can identify forward-looking statements by words such as “guidance,” “future,” “anticipates,” “assumes,” “believes,” “embedded,” “estimates,” “expects,” “growth,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this earnings release include, but are not limited to, statements regarding the Company’s 2026 guidance and long-term performance outlook, trends with respect to rates, pretax margins, utilization, and medical costs, including the timing thereof and the anticipated impact on the Company’s business, and our management’s plans and objectives for future operations and business strategy. Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings “Forward-Looking Statements,” and “Risk Factors,” in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025, which is on file with the U.S. Securities and Exchange Commission (the “SEC”), and in the Company’s other filings with the SEC, including its Quarterly Report on Form 10-Q for the period ended March 31, 2026 filed with the SEC and Quarterly Report on Form 10-Q for the period ended June 30, 2026, to be filed with the SEC. These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of July 22, 2026, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations. MOLINA HEALTHCARE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (In millions, except per-share amounts) Revenue: Premium revenue $ 10,244 $ 10,868 $ 20,416 $ 21,496 Premium tax revenue 505 431 1,009 819 Investment income 101 106 199 214 Other revenue 24 22 46 45 Total revenue 10,874 11,427 21,670 22,574 Operating expenses: Medical care costs 9,440 9,829 18,710 19,308 General and administrative expenses 724 711 1,503 1,485 Premium tax expenses 505 431 1,009 819 Depreciation and amortization 40 58 79 106 Impairment — — 93 — Other 20 25 48 50 Total operating expenses 10,729 11,054 21,442 21,768 Operating income 145 373 228 806 Interest expense 54 48 108 91 Income before income tax expense 91 325 120 715 Income tax expense 31 70 46 162 Net income $ 60 $ 255 $ 74 $ 553 Net income per share – Diluted $ 1.19 $ 4.75 $ 1.46 $ 10.19 Diluted weighted average shares outstanding 51.3 53.7 51.2 54.3 MOLINA HEALTHCARE, INC. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2026 2025 Unaudited (Dollars in millions, except per-share amounts) ASSETS Current assets: Cash and cash equivalents $ 4,985 $ 4,248 Investments 3,930 4,008 Receivables 3,485 3,533 Prepaid expenses and other current assets 528 655 Total current assets 12,928 12,444 Property, equipment, and capitalized software, net 311 301 Goodwill and intangible assets, net 2,082 2,195 Restricted investments 313 299 Deferred income taxes, net 229 178 Other assets 140 147 Total assets $ 16,003 $ 15,564 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Medical claims and benefits payable $ 4,841 $ 4,887 Amounts due government agencies 1,651 1,326 Accounts payable, accrued liabilities and other 1,139 1,093 Deferred revenue 69 66 Total current liabilities 7,700 7,372 Long-term debt 3,769 3,766 Finance lease liabilities 184 184 Other long-term liabilities 179 173 Total liabilities 11,832 11,495 Stockholders’ equity: Common stock, $0.001 par value, 150 million shares authorized; outstanding: 52 million shares at June 30, 2026, and 51 million at December 31, 2025 — — Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding — — Additional paid-in capital 511 452 Accumulated other comprehensive (loss) income (16 ) 15 Retained earnings 3,676 3,602 Total stockholders’ equity 4,171 4,069 Total liabilities and stockholders’ equity $ 16,003 $ 15,564 MOLINA HEALTHCARE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2026 2025 (In millions) Operating activities: Net income $ 74 $ 553 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 79 106 Deferred income taxes (41 ) 22 Share-based compensation 59 30 Impairment 93 — Other, net (2 ) — Changes in operating assets and liabilities: Receivables 48 (466 ) Prepaid expenses and other current assets 9 10 Medical claims and benefits payable (46 ) (50 ) Amounts due government agencies 325 (81 ) Accounts payable, accrued liabilities and other 66 (301 ) Deferred revenue 3 (59 ) Income taxes 121 124 Net cash provided by (used in) operating activities 788 (112 ) Investing activities: Purchases of investments (626 ) (421 ) Proceeds from sales and maturities of investments 672 717 Purchases of property, equipment, and capitalized software (57 ) (64 ) Net cash paid in business combinations — (245 ) Other, net (8 ) 18 Net cash (used in) provided by investing activities (19 ) 5 Financing activities: Proceeds from borrowings under credit facility and term loans — 650 Common stock purchases — (500 ) Repayment of credit facility and term loans — (200 ) Common stock withheld to settle employee tax obligations (14 ) (36 ) Other, net (10 ) 44 Net cash used in financing activities (24 ) (42 ) Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents 745 (149 ) Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period 4,348 4,741 Cash, cash equivalents, and restricted cash and cash equivalents at end of period $ 5,093 $ 4,592 MOLINA HEALTHCARE, INC. UNAUDITED SEGMENT DATA (Dollars in millions) June 30, December 31, June 30, 2026 2025 2025 Ending Membership by Segment: Medicaid 4,418,000 4,568,000 4,774,000 Medicare 224,000 262,000 267,000 Marketplace 283,000 655,000 690,000 Other 1,000 6,000 15,000 Total 4,926,000 5,491,000 5,746,000 Three Months Ended June 30, 2026 2025 Premium Revenue Medical Margin MCR (1) Premium Revenue Medical Margin MCR (1) Medicaid $ 8,049 $ 585 92.7 % $ 8,029 $ 697 91.3 % Medicare 1,565 146 90.7 1,608 161 90.0 Marketplace 628 69 88.9 1,200 175 85.4 Other (2) 2 4 NM 31 6 NM Consolidated $ 10,244 $ 804 92.2 % $ 10,868 $ 1,039 90.4 % Six Months Ended June 30, 2026 2025 Premium Revenue Medical Margin MCR (1) Premium Revenue Medical Margin MCR (1) Medicaid $ 15,976 $ 1,216 92.4 % $ 16,159 $ 1,488 90.8 % Medicare 3,082 300 90.3 3,076 333 89.2 Marketplace 1,352 185 86.3 2,204 358 83.7 Other (2) 6 5 NM 57 9 NM Consolidated $ 20,416 $ 1,706 91.6 % $ 21,496 $ 2,188 89.8 % (1) The MCR represents medical costs as a percentage of premium revenue. (2) The Other MCRs are not meaningful. MOLINA HEALTHCARE, INC. CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE (Dollars in millions) The Company’s claims liabilities include additional reserves to account for moderately adverse conditions based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. The Company’s reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior year” represent the amounts by which the original estimates of claims and benefits payable at the beginning of the year were more than the actual liabilities based on information (principally the payment of claims) developed since those liabilities were first reported. The following table presents the components of the change in medical claims and benefits payable for the periods indicated: Six Months Ended June 30, 2026 2025 Unaudited Medical claims and benefits payable, beginning balance $ 4,887 $ 4,640 Components of medical care costs related to: Current year 18,995 19,509 Prior year (285 ) (201 ) Total medical care costs 18,710 19,308 Payments for medical care costs related to: Current year 15,062 15,700 Prior year 3,918 3,918 Total paid 18,980 19,618 Acquired balances, net of post-acquisition adjustments — 295 Change in non-risk and other payables 224 260 Medical claims and benefits payable, ending balance $ 4,841 $ 4,885 Days in Claims Payable (1) 44 43 __________________ (1) The Company calculates Days in Claims Payable using claims incurred but not paid, or IBNP, and other fee-for-service payables included in medical claims and benefits payable, and quarterly fee-for-service related costs included in medical care costs within the Company’s consolidated financial statements. MOLINA HEALTHCARE, INC. RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (In millions, except per diluted share amounts) The Company believes that certain non-GAAP (generally accepted accounting principles) financial measures are useful supplemental measures to investors in comparing the Company’s performance to the performance of other public companies in the health care industry. The non-GAAP financial measures are also used internally to enable management to assess the Company’s performance consistently over time. These non-GAAP financial measures, presented below, should be considered as supplements to, and not as substitutes for or superior to, GAAP measures. Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, impairments, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations. Adjusted G&A Ratio represents the GAAP G&A ratio, recognizing adjustments. Adjusted net income represents GAAP net income recognizing the adjustments, net of tax. The Company believes that adjusted net income is helpful to investors in assessing the Company’s financial performance. Adjusted net income per diluted share represents adjusted net income divided by weighted average common shares outstanding on a fully diluted basis. Adjusted pre-tax margin represents adjusted income before income tax expense, divided by total revenue. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share GAAP Net income $ 60 $ 1.19 $ 255 $ 4.75 $ 74 $ 1.46 $ 553 $ 10.19 Adjustments: Amortization of intangible assets $ 9 $ 0.18 $ 32 $ 0.60 $ 19 $ 0.38 $ 53 $ 0.99 Acquisition-related expenses (1) 12 0.23 19 0.37 33 0.64 42 0.78 Impairment (2) — — — — 93 1.82 — — Other (3) — — — — 21 0.41 2 0.03 Subtotal, adjustments 21 0.41 51 0.97 166 3.25 97 1.80 Income tax effect (4 ) (0.09 ) (12 ) (0.24 ) (43 ) (0.85 ) (23 ) (0.43 ) Adjustments, net of tax 17 0.32 39 0.73 123 2.40 74 1.37 Adjusted net income $ 77 $ 1.51 $ 294 $ 5.48 $ 197 $ 3.86 $ 627 $ 11.56 __________________ (1) Reflects non-recurring costs associated with acquisitions, including various transaction and certain integration costs. (2) This impairment charge results from the Company’s decision to exit the Medicare Advantage Prescription Drug product for 2027 as that product does not align with the Company’s strategic shift to focus exclusively on dual eligible members in Medicare. (3) The six months ended June 30, 2026 primarily includes non-recurring termination benefits, and the six months ended June 30, 2025 includes non-recurring litigation costs. MOLINA HEALTHCARE, INC. RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED) 2026 GUIDANCE Amount Per Diluted Share (2) GAAP Net income $ 110 $ 2.15 Adjustments: Acquisition-related expenses 64 1.24 Amortization of intangible assets 36 0.71 Impairment 93 1.83 Other 21 0.41 Subtotal, adjustments 214 4.19 Income tax effect (1) (56 ) (1.09 ) Adjustments, net of tax 158 3.10 Adjusted net income $ 268 $ 5.25 __________________ (1) Income tax effect calculated at the statutory tax rate of approximately 26.0%. (2) Computations assume approximately 51.1 million diluted weighted average shares outstanding. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722885249/en/ Investor Contact: Jeffrey Geyer, [email protected], 305-317-3012 Media Contact: Caroline Zubieta, [email protected], 562-542-1845 Source: Molina Healthcare, Inc.