Molina Healthcare, Inc. Q3 2026 Earnings Recap

Molina’s shares rose 0.8%, a roughly flat reaction, as the company reaffirmed 2026 guidance and outlined a preliminary 2027 earnings outlook. The outlook includes delayed Georgia and Texas contract starts and higher projected Medicaid medical cost trend, tempering the positive rate outlook.

Key Takeaways

• Q3 adjusted EPS was $0.89 on $10.5 billion of premium revenue; consolidated MCR was 92.9%, and adjusted pre-tax margin was 0.6%.
• Molina reaffirmed 2026 adjusted EPS guidance of at least $5.25 and premium revenue guidance of approximately $42 billion.
• For 2026 Medicaid, the company raised its rate outlook and increased its medical cost trend outlook to 5%–5.5% from 4%–4.5% for trend, while leaving the 92.9% full-year MCR guidance unchanged.
• Preliminary 2027 premium revenue is expected to be at least $45 billion. Delayed Georgia and Texas contracts defer $1.3 billion of premium; Molina expects overall Medicaid rate increases may approximate 6%, against projected medical cost trend of 5.5%–6%.
• Preliminary 2027 earnings building blocks exceed $9.50 per share from known items, but do not assume improvement in legacy Medicaid or Medicare MCRs.