Molina Healthcare Reports Second Quarter 2026 Financial Results

About this update from Molina Healthcare Inc

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/

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