Overview
Molina Healthcare Inc. (NYSE:MOH) posted Q2 2026 results that beat earnings expectations but guided FY revenue below consensus, leading to a 6.9% after‑hours decline in its share price on 23 July 2026.
Financial Performance
- Adjusted earnings per share for the quarter were $1.51, surpassing the analyst consensus of $1.39 by $0.12.
- Quarterly revenue was $10.87 billion, marginally above the $10.83 billion estimate but 5% lower than the $11.43 billion recorded in Q2 2025, reflecting reduced membership partially offset by rate updates.
- The company raised its FY 2026 adjusted EPS guidance by $0.25 to a minimum of $5.25 per diluted share, above the consensus estimate of $5.16.
- FY 2026 revenue guidance remained at approximately $42 billion, well under the $44.28 billion analyst forecast, which contributed to the negative market reaction.
Operational Metrics
- Consolidated medical care ratio (MCR) increased to 92.2% in Q2 2026 from 90.4% a year earlier.
- Segment MCRs: Medicaid 92.7%, Medicare 90.7%, Marketplace 88.9%; the Marketplace figure was higher than expected due to prior‑year risk‑adjustment and an unfavorable member‑acuity mix.
- A $1.50 per‑share increase in Medicare earnings was offset by a $1.50 per‑share decrease related to the Marketplace segment.
- Management described 2026 as a trough year for Medicaid pretax margins and expressed confidence in positioning for profitable growth in 2027.
Membership and Cash Flow
- As of 30 June 2026, Molina served approximately 4.9 million members.
- Operating cash flow for the first half of 2026 was $788 million, a turnaround from an $112 million cash outflow in the comparable period of the prior year.
Management Commentary
Joseph Zubretsky, President and Chief Executive Officer, said the Q2 results and full‑year guidance reflect solid performance in Medicaid and Medicare, and that the imbalance between Medicaid rates and medical cost trends appears to have stabilized, positioning the company for future rate increases.