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Molina Healthcare Incurs a Loss in Q4 as Medical Costs Surge
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Key Takeaways
MOH reported a Q4 adjusted loss of $2.75 per share as medical costs and expenses sharply increased.
MOH's 2025 revenues climbed to $45.4B, but adjusted EPS fell to $11.03 from $22.65 a year earlier.
Molina saw medical care costs surge, with the medical care ratio jumping 440 basis points to 94.6%.
Molina Healthcare, Inc. (MOH - Free Report) reported a fourth-quarter 2025 adjusted loss of $2.75 per share, which missed the Zacks Consensus Estimate of an adjusted EPS of 43 cents. The company reported an EPS of $5.05 in the prior-year quarter.
Revenues amounted to $11.4 billion, which improved 8.3% year over year. The top line beat the consensus mark by 5.3%.
Molina’s quarterly performance was affected by lower medical membership, higher medical care costs and interest expense. Nevertheless, the downside was partly offset by higher premium revenues.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
The company reported total revenues of $45.4 billion in 2025, up from $40.7 billion a year ago. The figure beat the consensus estimate of $44.8 billion. Adjusted EPS declined to $11.03 from $22.65 in 2024 but beat the consensus estimate of $10.65. Adjusted net income decreased to $584 million from $1.3 billion a year ago. Premium revenues totaled $43.1 billion, up from $38.6 billion a year ago, driven by recent acquisitions, rate increases and organic growth.
MOH’s Q4 Operational Update
Premium revenues totaled $10.7 billion in the quarter under review, representing a 7.3% year-over-year increase and exceeding both the Zacks Consensus Estimate and our estimate of $10.2 billion.
As of Dec. 31, 2025, total membership declined 0.8% year over year to approximately 5.49 billion, missing the Zacks Consensus Estimate of 5.52 billion. Membership growth in the Medicare and Marketplace segments was offset by a decline in the Medicaid business.
Investment income fell 11.7% year over year to $98 million, below the consensus estimate of $100.1 million.
Total operating expenses rose 14% year over year to $11.5 billion, exceeding our model estimate of $10.7 billion, primarily due to higher medical care costs, along with increased general and administrative and premium tax expenses. The adjusted general and administrative expense ratio increased 60 basis point to 6.9%. Interest expense of $52 reflected 52.9% year-over-year growth.
The consolidated medical care ratio (MCR), which represents medical costs as a percentage of premium revenues, increased 440 basis points year over year to 94.6%, exceeding both the consensus estimate and our estimate of 93%.
Molina Healthcare incurred an adjusted net loss of $140 million for the quarter against an adjusted net income of $286 million in the prior-year period.
MOH’s Financial Update (as of Dec. 31, 2025)
Molina Healthcare exited the fourth quarter with cash and cash equivalents of $4.2 billion, which declined from the 2024-end level of $4.7 billion. Total assets of $15.56 billion declined marginally from $15.63 billion at 2024-end.
Long-term debt of $3.8 billion rose from $2.9 billion at 2024-end.
Total stockholders’ equity of $4.1 billion decreased from $4.5 billion a year ago.
Net cash used in operating activities was $535 million against net cash provided by operating activities of $644 million a year back. The decline primarily reflected differences in the timing of government receivables and payables.
MOH’s 2026 Guidance
Management expects premium revenues of 42.2 billion, suggesting a 2% decline year over year. Adjusted earnings are estimated to be at least $5.00 per share compared with $11.03 per share in 2025.
Adjusted net income is projected to be $256 million, while GAAP net income is expected to reach $164 million in 2026. Total membership is estimated to be 5.1 million by the end of 2026 compared with 5.5 million at the end of 2025. The MCR is expected to be 92.6%, and the effective tax rate is anticipated to be 30%.
MOH’s Zacks Rank
Molina currently carries a Zacks Rank #5 (Strong Sell).
Other Medical sector players like UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and The Cigna Group (CI - Free Report) have also reported December-quarter results. Here’s how they have performed:
UnitedHealth reported fourth-quarter 2025 adjusted earnings per share of $2.11, which beat the Zacks Consensus Estimate of $2.09 on higher commercial fee-based membership and the strength witnessed in Optum Rx. However, the bottom line declined 69% year over year due to elevated medical costs. UnitedHealth’s revenues rose 12% year over year to $113.2 billion.
Elevance Health reported fourth-quarter 2025 adjusted EPS of $3.33, which surpassed the Zacks Consensus Estimate by 7.3% on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by buyout and scaling risk-based services, while Health Benefits saw increased premium yields and Medicare Advantage membership growth. The upside was partly offset by a decline in Elevance Health’s overall medical membership and an elevated expense level.
The Cigna Group reported fourth-quarter 2025 adjusted earnings per share of $8.08, which beat the Zacks Consensus Estimate by 2.7% and improved 22% year over year. Adjusted revenues rose 10% year over year to $72.5 billion and exceeded the consensus estimate by 3.7%. The results were driven by strong performance in the Evernorth Health Services segment, supported by new business wins, expanded client relationships, strength in Pharmacy Benefit Services, and specialty volumes, partially offset by a decline in medical customers following divestitures to Health Care Services Corporation and elevated expense levels.
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Molina Healthcare Incurs a Loss in Q4 as Medical Costs Surge
Key Takeaways
Molina Healthcare, Inc. (MOH - Free Report) reported a fourth-quarter 2025 adjusted loss of $2.75 per share, which missed the Zacks Consensus Estimate of an adjusted EPS of 43 cents. The company reported an EPS of $5.05 in the prior-year quarter.
Revenues amounted to $11.4 billion, which improved 8.3% year over year. The top line beat the consensus mark by 5.3%.
Molina’s quarterly performance was affected by lower medical membership, higher medical care costs and interest expense. Nevertheless, the downside was partly offset by higher premium revenues.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
MOH’s Full-Year 2025 Figures
The company reported total revenues of $45.4 billion in 2025, up from $40.7 billion a year ago. The figure beat the consensus estimate of $44.8 billion. Adjusted EPS declined to $11.03 from $22.65 in 2024 but beat the consensus estimate of $10.65. Adjusted net income decreased to $584 million from $1.3 billion a year ago. Premium revenues totaled $43.1 billion, up from $38.6 billion a year ago, driven by recent acquisitions, rate increases and organic growth.
MOH’s Q4 Operational Update
Premium revenues totaled $10.7 billion in the quarter under review, representing a 7.3% year-over-year increase and exceeding both the Zacks Consensus Estimate and our estimate of $10.2 billion.
As of Dec. 31, 2025, total membership declined 0.8% year over year to approximately 5.49 billion, missing the Zacks Consensus Estimate of 5.52 billion. Membership growth in the Medicare and Marketplace segments was offset by a decline in the Medicaid business.
Investment income fell 11.7% year over year to $98 million, below the consensus estimate of $100.1 million.
Total operating expenses rose 14% year over year to $11.5 billion, exceeding our model estimate of $10.7 billion, primarily due to higher medical care costs, along with increased general and administrative and premium tax expenses. The adjusted general and administrative expense ratio increased 60 basis point to 6.9%. Interest expense of $52 reflected 52.9% year-over-year growth.
The consolidated medical care ratio (MCR), which represents medical costs as a percentage of premium revenues, increased 440 basis points year over year to 94.6%, exceeding both the consensus estimate and our estimate of 93%.
Molina Healthcare incurred an adjusted net loss of $140 million for the quarter against an adjusted net income of $286 million in the prior-year period.
MOH’s Financial Update (as of Dec. 31, 2025)
Molina Healthcare exited the fourth quarter with cash and cash equivalents of $4.2 billion, which declined from the 2024-end level of $4.7 billion. Total assets of $15.56 billion declined marginally from $15.63 billion at 2024-end.
Long-term debt of $3.8 billion rose from $2.9 billion at 2024-end.
Total stockholders’ equity of $4.1 billion decreased from $4.5 billion a year ago.
Net cash used in operating activities was $535 million against net cash provided by operating activities of $644 million a year back. The decline primarily reflected differences in the timing of government receivables and payables.
MOH’s 2026 Guidance
Management expects premium revenues of 42.2 billion, suggesting a 2% decline year over year. Adjusted earnings are estimated to be at least $5.00 per share compared with $11.03 per share in 2025.
Adjusted net income is projected to be $256 million, while GAAP net income is expected to reach $164 million in 2026. Total membership is estimated to be 5.1 million by the end of 2026 compared with 5.5 million at the end of 2025. The MCR is expected to be 92.6%, and the effective tax rate is anticipated to be 30%.
MOH’s Zacks Rank
Molina currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Other Medical sector players like UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and The Cigna Group (CI - Free Report) have also reported December-quarter results. Here’s how they have performed:
UnitedHealth reported fourth-quarter 2025 adjusted earnings per share of $2.11, which beat the Zacks Consensus Estimate of $2.09 on higher commercial fee-based membership and the strength witnessed in Optum Rx. However, the bottom line declined 69% year over year due to elevated medical costs. UnitedHealth’s revenues rose 12% year over year to $113.2 billion.
Elevance Health reported fourth-quarter 2025 adjusted EPS of $3.33, which surpassed the Zacks Consensus Estimate by 7.3% on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by buyout and scaling risk-based services, while Health Benefits saw increased premium yields and Medicare Advantage membership growth. The upside was partly offset by a decline in Elevance Health’s overall medical membership and an elevated expense level.
The Cigna Group reported fourth-quarter 2025 adjusted earnings per share of $8.08, which beat the Zacks Consensus Estimate by 2.7% and improved 22% year over year. Adjusted revenues rose 10% year over year to $72.5 billion and exceeded the consensus estimate by 3.7%. The results were driven by strong performance in the Evernorth Health Services segment, supported by new business wins, expanded client relationships, strength in Pharmacy Benefit Services, and specialty volumes, partially offset by a decline in medical customers following divestitures to Health Care Services Corporation and elevated expense levels.