Molina Healthcare profit halves on higher medical costs; insurer reaffirms full-year guidance

Molina Healthcare's third-quarter earnings fell by roughly half as the Medicaid-focused insurer paid out more of its premiums in medical costs, but it stood by its full-year forecast and said Medicaid margins may be starting to turn.

GAAP net income dropped to $38 million, or 73 cents a share, from $79 million, or $1.51, a year earlier, according to the earnings release Molina filed with an 8-K on Wednesday. Adjusted EPS fell 53% to 89 cents from $1.84. The company attributed the decline mainly to a higher medical care ratio.

Premium revenue fell 4% to about $10.5 billion, reflecting lower Medicaid and Marketplace membership partly offset by rate updates. Molina served about 4.9 million members at Sept. 30.

Cost ratios

The consolidated medical care ratio, the share of premiums spent on care, rose to 92.9% from 92.6%. The Medicaid and Medicare ratios were each 93.0% and the Marketplace ratio was 92.5%, all in line with the company's expectations, Molina said.

"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," President and CEO Joseph Zubretsky said in the release.

Guidance held

Molina reaffirmed its 2026 outlook for premium revenue of about $42 billion and adjusted EPS of at least $5.25. For the first nine months, adjusted EPS was $4.74, down from $13.49.

By the numbers

• Premium revenue: about $10.5 billion, down 4%
• GAAP EPS: $0.73, vs. $1.51
• Adjusted EPS: $0.89, vs. $1.84
• Medical care ratio: 92.9%
• 2026 adjusted EPS guide: at least $5.25

Sources

1. Molina Healthcare, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0001179929-26-000042

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