MOH · Molina Healthcare, Inc.

Molina Healthcare's first quarter 2026 results showed significant year-over-year declines in both GAAP and adjusted earnings per share, with GAAP diluted EPS dropping 95% to $0.27 and adjusted diluted EPS falling 61% to $2.35. The GAAP results were impacted by a $93 million impairment of intangible assets related to the company's planned exit from the Medicare Advantage-Part D product for 2027. Premium revenue decreased 4% year-over-year to approximately $10.2 billion, driven by lower Medicaid membership due to general market contraction and the expiration of the Medicaid contract in Virginia, along with decreased Marketplace membership resulting from product and pricing strategy changes. The consolidated Medical Care Ratio increased to 91.1% from 89.2% in the prior year quarter, with segment MCRs of 92.0% for Medicaid, 89.8% for Medicare, and 84.0% for Marketplace. Management noted that medical cost trend was modestly favorable to expectations and reaffirmed full-year 2026 guidance of approximately $42 billion in premium revenue and adjusted earnings of at least $5.00 per diluted share. The company expects to update full-year guidance when reporting second quarter results and will provide a three-year outlook at its Investor Day event on May 8, 2026. Operating cash flow improved significantly to $1,082 million compared to $190 million in the prior year quarter, driven mainly by timing of government receivables and payables.