Molina Healthcare Reports Third Quarter 2026 Financial Results

Reaffirms Full Year 2026 Earnings Guidance LONG BEACH, Calif.--(BUSINESS WIRE)--Oct. 21, 2026-- Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported third quarter 2026 GAAP income per diluted share of $0.73 and adjusted income per diluted share of $0.89. Financial results are summarized below: Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 (In millions, except per-share results) Premium Revenue $10,457 $10,841 $30,873 $32,337 Total Revenue $11,082 $11,477 $32,752 $34,051 GAAP: Net Income $38 $79 $112 $632 EPS – Diluted $0.73 $1.51 $2.19 $11.79 Medical Care Ratio (MCR) 92.9% 92.6% 92.1% 90.8% G&A Ratio 6.4% 6.4% 6.8% 6.5% Pre-tax Margin 0.5% 0.8% 0.5% 2.4% Adjusted: Net Income $46 $97 $243 $724 EPS – Diluted $0.89 $1.84 $4.74 $13.49 G&A Ratio 6.3% 6.3% 6.6% 6.4% Pre-tax Margin 0.6% 1.0% 1.1% 2.7% See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release. Quarter Highlights As of September 30, 2026, the Company served approximately 4.9 million members. Premium revenue was approximately $10.5 billion for the third quarter of 2026. Third quarter 2026 GAAP income per diluted share was $0.73 and adjusted income per diluted share was $0.89. The Company reaffirmed its full year 2026 guidance of expected premium revenue of approximately $42 billion and adjusted earnings of at least $5.25 per diluted share. “We are pleased with our third quarter results in this challenging environment and reaffirm our full year guidance,” said Joseph Zubretsky, President and Chief Executive Officer. “With the apparent plateauing of medical cost trend, which remains at elevated levels, and the strength of recent rate updates for 2027, we believe we are likely observing the beginning of the turn in Medicaid margins.” Premium Revenue Premium revenue was approximately $10.5 billion for the third quarter of 2026, a decrease of 4% year over year. The lower premium revenue reflects the impact of lower membership in Medicaid and Marketplace, partially offset by rate updates. Net Income GAAP net income for the third quarter of 2026 was $38 million, or $0.73 per diluted share, a decrease of 52% year over year. Adjusted net income for the third quarter of 2026 was $46 million, or $0.89 per diluted share, a decrease of 53% year over year. The decrease is attributed mainly to a higher consolidated MCR. Medical Care Ratio (MCR) The consolidated MCR for the third quarter of 2026 was 92.9%. The Medicaid MCR for the third quarter of 2026 was 93.0% and in line with the Company’s expectations, reflecting rate updates and stable medical cost trend. The Medicare MCR for the third quarter of 2026 was 93.0% and in line with the Company’s expectations, reflecting stable medical cost trend. The Marketplace MCR for the third quarter of 2026 was 92.5% and in line with normal seasonality and the Company’s expectations. General and Administrative Expense Ratio The G&A ratio and the adjusted G&A ratio for the third quarter of 2026 were 6.4% and 6.3%, respectively, reflecting continued operating discipline. Balance Sheet Cash and investments at the parent company were approximately $608 million as of September 30, 2026, compared to $223 million as of December 31, 2025. Days in claims payable at September 30, 2026, was 44, consistent with June 30, 2026. Cash Flow Operating cash flow for the nine months ended September 30, 2026, was $629 million, compared to an outflow of $237 million for the nine months ended September 30, 2025. The increase compared to the prior year was driven mainly by lower government receivable and payable settlements in 2026. 2026 Guidance Premium revenue guidance for the full year is unchanged at approximately $42 billion. The Company expects its full year 2026 GAAP earnings to be at least $2.38 per diluted share and reaffirmed its full year 2026 adjusted earnings of at least $5.25 per diluted share. Guidance metrics across all segments are also reaffirmed. Full year earnings 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 third quarter ended September 30, 2026 results, at 8:00 a.m. Eastern Time on Thursday, October 22, 2026. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 6534841. A telephonic replay of the conference call will be available through Thursday, October 29, 2026, by dialing (855) 669-9658 and entering confirmation number 4361465. 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 Reports on Form 10-Q for the period ended March 31, 2026 and June 30, 2026 filed with the SEC and Quarterly Report on Form 10-Q for the period ended September 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 October 21, 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 Nine Months Ended September 30, September 30, 2026 2025 2026 2025 (In millions, except per-share amounts) Revenue: Premium revenue $ 10,457 $ 10,841 $ 30,873 $ 32,337 Premium tax revenue 500 506 1,509 1,325 Investment income 102 108 301 322 Other revenue 23 22 69 67 Total revenue 11,082 11,477 32,752 34,051 Operating expenses: Medical care costs 9,719 10,044 28,429 29,352 General and administrative expenses 710 729 2,213 2,214 Premium tax expenses 500 506 1,509 1,325 Depreciation and amortization 38 45 117 151 Impairment — — 93 — Other 9 16 57 66 Total operating expenses 10,976 11,340 32,418 33,108 Operating income 106 137 334 943 Interest expense 53 49 161 140 Income before income tax expense 53 88 173 803 Income tax expense 15 9 61 171 Net income $ 38 $ 79 $ 112 $ 632 Net income per share – Diluted $ 0.73 $ 1.51 $ 2.19 $ 11.79 Diluted weighted average shares outstanding 51.5 52.5 51.3 53.6 MOLINA HEALTHCARE, INC. CONSOLIDATED BALANCE SHEETS September 30, December 31, 2026 2025 Unaudited (Dollars in millions, except per-share amounts) ASSETS Current assets: Cash and cash equivalents $ 4,479 $ 4,248 Investments 4,100 4,008 Receivables 3,359 3,533 Prepaid expenses and other current assets 576 655 Total current assets 12,514 12,444 Property, equipment, and capitalized software, net 324 301 Goodwill and intangible assets, net 2,073 2,195 Restricted investments 345 299 Deferred income taxes, net 267 178 Other assets 129 147 Total assets $ 15,652 $ 15,564 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Medical claims and benefits payable $ 4,988 $ 4,887 Amounts due government agencies 1,141 1,326 Accounts payable, accrued liabilities and other 1,183 1,093 Deferred revenue 82 66 Total current liabilities 7,394 7,372 Long-term debt 3,771 3,766 Finance lease liabilities 179 184 Other long-term liabilities 153 173 Total liabilities 11,497 11,495 Stockholders’ equity: Common stock, $0.001 par value, 150 million shares authorized; outstanding: 52 million shares at September 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 536 452 Accumulated other comprehensive (loss) income (95 ) 15 Retained earnings 3,714 3,602 Total stockholders’ equity 4,155 4,069 Total liabilities and stockholders’ equity $ 15,652 $ 15,564 MOLINA HEALTHCARE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2026 2025 (In millions) Operating activities: Net income $ 112 $ 632 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 117 151 Deferred income taxes (54 ) 37 Share-based compensation 85 27 Impairment 93 — Other, net (21 ) (2 ) Changes in operating assets and liabilities: Receivables 174 (118 ) Prepaid expenses and other current assets 11 (25 ) Medical claims and benefits payable 101 (157 ) Amounts due government agencies (185 ) (467 ) Accounts payable, accrued liabilities and other 88 (195 ) Deferred revenue 16 (44 ) Income taxes 92 (76 ) Net cash provided by (used in) operating activities 629 (237 ) Investing activities: Purchases of investments (1,245 ) (607 ) Proceeds from sales and maturities of investments 1,020 1,017 Purchases of property, equipment, and capitalized software (94 ) (102 ) Net cash paid in business combinations — (245 ) Other, net (9 ) 19 Net cash (used in) provided by investing activities (328 ) 82 Financing activities: Proceeds from borrowings under credit facility and term loans — 1,100 Common stock purchases — (1,000 ) Repayment of credit facility and term loans — (360 ) Common stock withheld to settle employee tax obligations (15 ) (37 ) Other, net (16 ) 35 Net cash used in financing activities (31 ) (262 ) Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents 270 (417 ) 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 $ 4,618 $ 4,324 MOLINA HEALTHCARE, INC. UNAUDITED SEGMENT DATA (Dollars in millions) September 30, December 31, September 30, 2026 2025 2025 Ending Membership by Segment: Medicaid 4,372,000 4,568,000 4,639,000 Medicare 222,000 262,000 266,000 Marketplace 267,000 655,000 713,000 Other 1,000 6,000 10,000 Total 4,862,000 5,491,000 5,628,000 Three Months Ended September 30, 2026 2025 Premium Revenue Medical Margin MCR (1) Premium Revenue Medical Margin MCR (1) Medicaid $ 8,199 $ 577 93.0 % $ 8,015 $ 639 92.0 % Medicare 1,616 113 93.0 1,610 103 93.6 Marketplace 642 48 92.5 1,197 53 95.6 Other (2) — — NM 19 2 NM Consolidated $ 10,457 $ 738 92.9 % $ 10,841 $ 797 92.6 % Nine Months Ended September 30, 2026 2025 Premium Revenue Medical Margin MCR (1) Premium Revenue Medical Margin MCR (1) Medicaid $ 24,175 $ 1,793 92.6 % $ 24,174 $ 2,127 91.2 % Medicare 4,698 413 91.2 4,686 436 90.7 Marketplace 1,994 233 88.3 3,401 411 87.9 Other (2) 6 5 NM 76 11 NM Consolidated $ 30,873 $ 2,444 92.1 % $ 32,337 $ 2,985 90.8 % _____________ (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: Nine Months Ended September 30, 2026 2025 Unaudited Medical claims and benefits payable, beginning balance $ 4,887 $ 4,640 Components of medical care costs related to: Current year 28,781 29,476 Prior year (352 ) (124 ) Total medical care costs 28,429 29,352 Payments for medical care costs related to: Current year 24,692 25,425 Prior year 3,963 4,059 Total paid 28,655 29,484 Acquired balances, net of post-acquisition adjustments — 361 Change in non-risk and other payables 327 (25 ) Medical claims and benefits payable, ending balance $ 4,988 $ 4,844 Days in Claims Payable (1) 44 46 _____________ (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 September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share GAAP Net income $ 38 $ 0.73 $ 79 $ 1.51 $ 112 $ 2.19 $ 632 $ 11.79 Adjustments: Amortization of intangible assets $ 10 $ 0.19 $ 20 $ 0.37 $ 29 $ 0.56 $ 73 $ 1.35 Acquisition-related expenses (1) — — 4 0.07 33 0.61 46 0.86 Impairment (2) — — — — 93 1.82 — — Other (3) — — (1 ) (0.01 ) 21 0.44 1 0.02 Subtotal, adjustments 10 0.19 23 0.43 176 3.43 120 2.23 Income tax effect (2 ) (0.03 ) (5 ) (0.10 ) (45 ) (0.88 ) (28 ) (0.53 ) Adjustments, net of tax 8 0.16 18 0.33 131 2.55 92 1.70 Adjusted net income $ 46 $ 0.89 $ 97 $ 1.84 $ 243 $ 4.74 $ 724 $ 13.49 _____________ (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 nine months ended September 30, 2026 primarily includes non-recurring termination benefits, and the nine months ended September 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 $ 122 $ 2.38 Adjustments: Acquisition-related expenses 48 0.89 Amortization of intangible assets 36 0.70 Impairment 93 1.82 Other 21 0.44 Subtotal, adjustments 198 3.85 Income tax effect (1) (50 ) (0.98 ) Adjustments, net of tax 148 2.87 Adjusted net income $ 270 $ 5.25 _____________ (1) Income tax effect calculated at the statutory tax rate of approximately 25.5%. (2) Computations assume approximately 51.4 million diluted weighted average shares outstanding. View source version on businesswire.com: https://www.businesswire.com/news/home/20261021455974/en/ Investor Contact: Jeffrey Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012 Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-542-1845 Source: Molina Healthcare, Inc.