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Molina Healthcare Q3 2026 Earnings Report
Molina Healthcare reports Q3 2026 earnings with $0.89 adjusted EPS and $10.5 billion premium revenue, projecting $45 billion in 2027 premium revenue.
In brief
Molina Healthcare reports Q3 2026 earnings with $0.89 adjusted EPS and $10.5 billion premium revenue, projecting $45 billion in 2027 premium revenue. Molina Healthcare reported Q3 2026 earnings of $0.89 adjusted EPS with $10.5 billion premium revenue, projecting $45 billion in 2027 premium revenue. Originally reported…
Q3 2026 Results
Molina Healthcare reported adjusted EPS of $0.89 for Q3 2026, a 52% decrease due to higher medical care ratios.
Premium Revenue
Q3 2026 premium revenue reached $10.5 billion, a 4% year-over-year decline from Medicaid and Marketplace segments.
2026 Guidance
Molina Healthcare reaffirmed 2026 adjusted EPS guidance of at least $5.25 per share, including $1.50 per share loss from Florida Medicaid contracts.
Consolidated MCR
Consolidated medical care ratio stood at 92.9% in Q3 2026, reflecting a challenging medical cost environment.
Medicaid MCR
Medicaid medical care ratio was 93% in Q3 2026, as rate updates offset a slight increase in medical costs.
Medicare MCR
Medicare medical care ratio reached 93% in Q3 2026, driven by strong duals business performance.
Marketplace MCR
Marketplace medical care ratio was 92.5% in Q3 2026, consistent with expectations and normal seasonality.
Medicaid Rate Outlook
Full-year 2026 Medicaid rate outlook increased to 4.5%, up from the previous 4% range due to rate updates.
Medicaid Trend Outlook
Full-year 2026 Medicaid trend outlook rose to 5.5%, reflecting elevated utilization and acuity shifts.
2027 Premium Revenue
Molina Healthcare projects at least $45 billion in 2027 premium revenue, down from $46.5 billion due to delayed Medicaid contracts.
Embedded Earnings
Molina Healthcare has $9 per share of embedded earnings from strategic initiatives, including RFP wins and acquisitions.
2027 Embedded Earnings Harvest
Molina Healthcare expects to harvest $4 per share of embedded earnings in 2027 from Florida contract breakeven and MAPD product exit.
Florida CMS Contract
Florida CMS contract implementation projects $1.5 billion in Q4 revenue with a 99% medical care ratio.
2027 Medicaid Rate Projection
2027 Medicaid rate projection is approximately 6%, based on known January 1 renewals averaging 7% for 55% of the full-year premium.
2027 Medical Cost Trend
2027 medical cost trend projection ranges from 5.5% to 6%, including 50 basis points of conservatism.
2027 Earnings Outlook
Molina Healthcare projects at least $9.50 per share of adjusted earnings for 2027, excluding legacy Medicaid or Medicare improvements.
The key point
Molina Healthcare reported Q3 2026 earnings of $0.89 adjusted EPS with $10.5 billion premium revenue, projecting $45 billion in 2027 premium revenue.
