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Molina Healthcare Reports Second Quarter 2026 Financial Results

July 22, 2026 4:15 PM

Increases Full Year 2026 Earnings Guidance

LONG BEACH, Calif.--(BUSINESS WIRE)-- 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

“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)

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.

Investor Contact: Jeffrey Geyer, [email protected], 305-317-3012

Media Contact: Caroline Zubieta, [email protected], 562-542-1845

Source: Molina Healthcare, Inc.

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