Bernstein reiterates Molina Healthcare stock rating on strong earnings

MOH reported Q3 revenue of $11.08B, beating estimates, with adjusted EPS of $0.89, also above expectations. Management maintained full-year EPS guidance. Medicaid margins stabilized due to rate increases, but membership declined. The company launched a $6B Florida CMS contract, expecting initial losses before break-even. Medicare duals performed well, while Marketplace business is being reduced.

Mizuho reiterated an Outperform rating and $255.00 price target on Molina Healthcare (MOH) after its Q3 2026 earnings beat. The company reported adjusted EPS of $0.89, exceeding estimates of $0.74, driven by premium revenue. MOH stock has gained 24% over six months, trading at $216.64. The company maintained its full-year guidance but noted pressures from Florida contracts and Medicare Advantage losses.

Molina Healthcare (MOH) reported Q3 2026 adjusted pre-tax margin of 0.6% and reaffirmed guidance. Medicaid cost trend rose to 5.5%, and new contracts in Georgia/Texas were delayed. Marketplace and Medicare MAPD segments are expected to lose $0.75 and $1 per share, respectively, in 2026. CEO Joe Zubretsky and CFO Mark Keim discussed Medicaid MLR improvements, Florida CMS contract, and enrollment declines.

Molina Healthcare (MOH) expects its legacy Medicaid business to achieve a 1.6% pretax margin in 2026, with a 6% rate increase projected for 2027. The company anticipates a 6% membership decline in 2027 due to federal work requirements. Its Florida CMS contract, started in Q3, is expected to create a $1.50-per-share earnings drag in 2026. Molina's 2027 premium revenue is projected at $45 billion, down from $46.5 billion. The company's Medicare and Marketplace segments show mixed performance.

Molina Healthcare (MOH) reported Q3 2026 adjusted EPS of $0.89 on $10.5B premium revenue. CEO Joseph noted a 92.9% medical cost ratio, indicating solid performance in a challenging environment. The company outlined 2027 premiums of at least $45B and EPS building blocks summing to over $9.50.

Molina Healthcare (MOH) reported Q3 2026 adjusted EPS of $0.89B on $10.5B premium revenue, with a 92.9% MCR. Full-year 2026 guidance remains $42B in premium revenue and at least $5.25 EPS. 2027 premium revenue is expected to be at least $45B, with known rate increases averaging 6% and medical cost trend projected at 5.5%-6%. The company reaffirmed its Medicaid and Medicare strategies, including exiting the MAPD business and reducing Marketplace footprint.