Molina Healthcare's third quarter 2026 results beat estimates as medical cost trends plateau

Molina Healthcare reported total revenue of $11.08 billion and GAAP EPS of $0.73 for the third quarter 2026, exceeding analyst expectations. The company reaffirmed its full-year 2026 adjusted EPS guidance of at least $5.25 despite year-over-year declines in membership across Medicaid and Marketplace segments.

Key Highlights

• The consolidated Medical Care Ratio (MCR) was 92.9%, slightly better than the 93.0% estimate but elevated compared to 92.6% in the prior year.
• Premium revenue declined 4% year-over-year to $10.5 billion, driven by lower membership totals, which fell to approximately 4.9 million compared to 5.6 million a year ago.
• Management noted an apparent plateauing of medical cost trends and expects a margin turnaround in Medicaid following recent rate updates for 2027.
• Guidance includes specific implementation headwinds of $1.50 per share for the Florida Medicaid contract and a $1.00 per share loss from the traditional MAPD product performance.