third quarter 2026
Filed Oct 21, 2026Molina Healthcare Reports Third Quarter 2026 Financial Results Reaffirms Full Year 2026 Earnings Guidance
Third-quarter premium revenue, GAAP net income, and adjusted net income declined year over year, while the consolidated MCR increased. The Company reaffirmed full-year premium revenue and earnings guidance, citing stable medical cost trend and recent rate updates.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $11.08B | – | – |
| Premium revenue, three months ended September 30GAAP | $10.46B | – | a decrease of 4% year over year |
| Premium tax revenue, three months ended September 30GAAP | 500 | – | – |
| Investment income, three months ended September 30GAAP | 102 | – | – |
| Other revenue, three months ended September 30GAAP | 23 | – | – |
| Medical care costs, three months ended September 30GAAP | 9,719 | – | – |
| General and administrative expenses, three months ended September 30GAAP | 710 | – | – |
| Premium tax expenses, three months ended September 30GAAP | 500 | – | – |
| Depreciation and amortization, three months ended September 30GAAP | 38 | – | – |
| Other operating expenses, three months ended September 30GAAP | 9 | – | – |
| Total operating expenses, three months ended September 30GAAP | 10,976 | – | – |
| Operating income, three months ended September 30GAAP | 106 | – | – |
| Interest expense, three months ended September 30GAAP | 53 | – | – |
| Income before income tax expense, three months ended September 30GAAP | 53 | – | – |
| Income tax expense, three months ended September 30GAAP | 15 | – | – |
| Net income, three months ended September 30GAAP | $38M | – | a decrease of 52% year over year |
| Net income per share – Diluted, three months ended September 30GAAP | $ 0.73 | – | – |
| Diluted weighted average shares outstanding, three months ended September 30GAAP | 51.5 | – | – |
| Medical Care Ratio, three months ended September 30GAAP | 92.9 % | – | – |
| G&A Ratio, three months ended September 30GAAP | 6.4 % | – | – |
| Pre-tax Margin, three months ended September 30GAAP | 0.5 % | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $46M | – | a decrease of 53% year over year |
| Adjusted net income per diluted share, three months ended September 30non-GAAP | $ 0.89 | – | – |
| Adjusted G&A Ratio, three months ended September 30non-GAAP | 6.3 % | – | – |
| Adjusted pre-tax margin, three months ended September 30non-GAAP | 0.6 % | – | – |
| Total revenue, nine months ended September 30GAAP | 32,752 | – | – |
| Premium revenue, nine months ended September 30GAAP | 30,873 | – | – |
| Operating income, nine months ended September 30GAAP | 334 | – | – |
| Impairment, nine months ended September 30GAAP | 93 | – | – |
| Net income, nine months ended September 30GAAP | $112M | – | – |
| Net income per share – Diluted, nine months ended September 30GAAP | $ 2.19 | – | – |
| Medical Care Ratio, nine months ended September 30GAAP | 92.1 % | – | – |
| G&A Ratio, nine months ended September 30GAAP | 6.8 % | – | – |
| Pre-tax Margin, nine months ended September 30GAAP | 0.5 % | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $243M | – | – |
| Adjusted net income per diluted share, nine months ended September 30non-GAAP | $ 4.74 | – | – |
| Adjusted G&A Ratio, nine months ended September 30non-GAAP | 6.6 % | – | – |
| Adjusted pre-tax margin, nine months ended September 30non-GAAP | 1.1 % | – | – |
| Total membership, ending membership by segmentother | 4,862,000 | – | – |
| Operating cash flow, nine months ended September 30GAAP | 629 | – | – |
| Days in Claims Payableother | 44 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Medicaid, three months ended September 30, 2026The Medicaid MCR for the third quarter of 2026 was 93.0% and in line with the Company’s expectations, reflecting rate updates and stable medical cost trend. | $8.20B | – | – |
| Medicare, three months ended September 30, 2026The Medicare MCR for the third quarter of 2026 was 93.0% and in line with the Company’s expectations, reflecting stable medical cost trend. | 1.62B | – | – |
| Marketplace, three months ended September 30, 2026The Marketplace MCR for the third quarter of 2026 was 92.5% and in line with normal seasonality and the Company’s expectations. | 642M | – | – |
| Other, three months ended September 30, 2026The Other MCRs are not meaningful. | — | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- Revenueapproximately $42 billion
- Tax rateapproximately 25.5%
- NoteGAAP earnings of at least $2.38 per diluted share
- Noteadjusted earnings of at least $5.25 per diluted share
- NoteFull year earnings 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.
- NoteFull year earnings guidance includes a loss of $1.00 per share due to performance of the traditional MAPD product.
Capital returns
- Common stock purchases: — for the nine months ended September 30, 2026, compared to (1,000) for the nine months ended September 30, 2025.
- Common stock withheld to settle employee tax obligations: (15) for the nine months ended September 30, 2026, compared to (37) for the nine months ended September 30, 2025.
What drove it
- The lower premium revenue reflects the impact of lower membership in Medicaid and Marketplace, partially offset by rate updates.
- The decrease in third-quarter GAAP and adjusted net income is attributed mainly to a higher consolidated MCR.
- The increase in operating cash flow compared to the prior year was driven mainly by lower government receivable and payable settlements in 2026.
- The 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.
- The Company cited the apparent plateauing of medical cost trend and the strength of recent rate updates for 2027.
Concerns
- Premium revenue was approximately $10.5 billion for the third quarter of 2026, a decrease of 4% year over year.
- Consolidated MCR was 92.9% for the third quarter of 2026, compared to 92.6% for the third quarter of 2025.
- Marketplace ending membership was 267,000 at September 30, 2026, compared to 713,000 at September 30, 2025.
- Full-year earnings guidance includes a loss of $1.50 per share due to implementation of the new Florida Medicaid contract in the fourth quarter of 2026.
- Full-year earnings guidance includes 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.
What to watch
- Medical cost trend and the Company’s expectation for the beginning of a turn in Medicaid margins.
- Execution of the new Florida Medicaid contract in the fourth quarter of 2026.
- Performance of the traditional MAPD product ahead of the planned 2027 exit.
- Rate updates for 2027.
- Membership trends in Medicaid and Marketplace.
Balance sheet and cash flow
- Cash and cash equivalents: $ 4,479 at September 30, 2026, compared to $ 4,248 at December 31, 2025.
- Investments: 4,100 at September 30, 2026, compared to 4,008 at December 31, 2025.
- Cash and investments at the parent company were approximately $608 million as of September 30, 2026, compared to $223 million as of December 31, 2025.
- Total assets: $ 15,652 at September 30, 2026, compared to $ 15,564 at December 31, 2025.
- Medical claims and benefits payable: $ 4,988 at September 30, 2026, compared to $ 4,887 at December 31, 2025.
- Long-term debt: 3,771 at September 30, 2026, compared to 3,766 at December 31, 2025.
- Total liabilities: 11,497 at September 30, 2026, compared to 11,495 at December 31, 2025.
- Total stockholders’ equity: 4,155 at September 30, 2026, compared to 4,069 at December 31, 2025.
- Net cash provided by (used in) operating activities: 629 for the nine months ended September 30, 2026, compared to (237) for the nine months ended September 30, 2025.
- Net cash (used in) provided by investing activities: (328) for the nine months ended September 30, 2026, compared to 82 for the nine months ended September 30, 2025.
- Net cash used in financing activities: (31) for the nine months ended September 30, 2026, compared to (262) for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash and cash equivalents at end of period: $ 4,618 for the nine months ended September 30, 2026, compared to $ 4,324 for the nine months ended September 30, 2025.
Analysis
Molina Healthcare reported third-quarter total revenue of $ 11,082 and premium revenue of $ 10,457, versus $ 11,477 and $ 10,841, respectively, in the prior-year quarter. The Company said premium revenue decreased 4% year over year as lower Medicaid and Marketplace membership was partially offset by rate updates. Total ending membership was 4,862,000 at September 30, 2026, compared with 5,628,000 at September 30, 2025, with Marketplace membership at 267,000 compared with 713,000.
Profitability remained under pressure. GAAP net income was $ 38, or $ 0.73 per diluted share, versus $ 79, or $ 1.51 per diluted share. Adjusted net income was $ 46, or $ 0.89 per diluted share, versus $ 97, or $ 1.84 per diluted share. The Company attributed the year-over-year decline mainly to a higher consolidated MCR. The third-quarter consolidated MCR was 92.9 %, compared with 92.6 %, while GAAP pre-tax margin was 0.5 %, compared with 0.8 %.
Segment performance showed a Medicaid MCR of 93.0 %, a Medicare MCR of 93.0, and a Marketplace MCR of 92.5 %. Management characterized Medicaid and Medicare MCRs as in line with expectations, citing rate updates and stable medical cost trend, while Marketplace was described as in line with normal seasonality and expectations. The GAAP G&A ratio was unchanged at 6.4 %, and the adjusted G&A ratio was unchanged at 6.3 %, which the Company attributed to continued operating discipline.
For the nine months ended September 30, GAAP net income was $ 112, compared with $ 632, and adjusted net income was $ 243, compared with $ 724. The nine-month period included a 93 impairment charge associated with the planned 2027 exit from the Medicare Advantage Prescription Drug product. Operating cash flow was 629, compared with an outflow of (237), driven mainly by lower government receivable and payable settlements in 2026. Cash and investments at the parent company were approximately $608 million, and long-term debt was 3,771 at September 30, 2026.
The Company reaffirmed full-year 2026 guidance for premium revenue of approximately $42 billion, GAAP earnings of at least $2.38 per diluted share, and adjusted earnings of at least $5.25 per diluted share. The guidance includes a loss of $1.50 per share from the new Florida Medicaid contract in the fourth quarter and a loss of $1.00 per share from the traditional MAPD product. Management pointed to apparent plateauing in medical cost trend and recent 2027 rate updates as support for its view that Medicaid margins may be beginning to turn.
Management, verbatim
We are pleased with our third quarter results in this challenging environment and reaffirm our full year guidance.
Joseph Zubretsky, President and Chief Executive Officer
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.
Joseph Zubretsky, President and Chief Executive Officer
Not in the filing
stated, not guessed- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Dividends were not reported.
- A gross margin was not reported.
- Prior guidance was not provided, so no comparison of actual results with prior guidance is available.
- Quantified full-year segment guidance metrics were not provided.
- Quarterly prior-period balance sheet and cash-flow figures were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.