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MOH Q1 EPS Tops Estimates on Lower Medical Costs, Membership Declines
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Key Takeaways
MOH Q1 EPS beat estimates, but adjusted net income plunged 64% year over year to $120 million.
Molina Healthcare revenue fell 3.1% as premiums, membership, and investment income declined.
MOH membership dropped 12.5%, while controlled medical costs supported operations.
Molina Healthcare Inc. (MOH - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level.
Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line marginally missed the consensus mark by 0.2%.
The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Premium revenues of $10.2 billion decreased 4.3% year over year in the quarter under review and missed the Zacks Consensus Estimate by 0.2%. The decline was due to reduced memberships, reflecting product and pricing decisions.
As of March 31, 2026, total membership decreased 12.5% year over year to around 5 million and missed the Zacks Consensus Estimate by 1.2%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income fell 9.3% year over year to $98 million. It missed the Zacks Consensus Estimate of $100.8 million.
Total operating expenses were $10.71 billion, flat year over year and slightly below our model estimate of $10.72 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.9% in the first quarter from 6.3% a year ago. Interest expenses of $54 million rose from $43 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 91.1% in the reported quarter. It rose from 89.2% a year ago but was below the Zacks Consensus Estimate of 91.5%.
Molina Healthcare’s adjusted net income decreased 64% year over year to $120 million.
MOH’s Financial Update (as of March 31, 2026)
Molina Healthcare exited the first quarter with cash and cash equivalents of $5.3 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16.4 billion rose from $15.6 billion at 2025-end.
Long-term debt was $3.8 billion, unchanged from the 2025-end levels.
Total stockholders’ equity of $4.08 billion rose from $4.07 billion at the end of 2025.
Net cash provided by operating activities amounted to $1.1 billion in the first quarter of 2026 compared with $190 million in the prior year.
MOH’s 2026 Guidance
The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.
Management expects 2026 GAAP earnings of at least $1.90 per diluted share. It has reaffirmed adjusted earnings guidance of at least $5.00 per diluted share.
Adjusted net income is projected to be $256 million, while GAAP net income is expected to reach $97 million in 2026.
Major peers UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) have already reported first-quarter results, while The Cigna Group (CI - Free Report) is scheduled to report next week.
UnitedHealth reported first-quarter 2026 adjusted EPS of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. The results were driven by growth in commercial fee-based membership and the strength in Optum Rx. Weaknesses in Optum Health and declining risk-based membership partially offset the positives. UNH’s first-quarter premium of $87.6 billion increased from $86.5 billion a year ago and beat the consensus mark of $86.1 billion.
Elevance Health reported first-quarter 2026 adjusted EPS of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. The strong quarterly results benefited from the growth in premiums. The upside was partly offset by a decline in overall medical membership and an elevated expense level. Elevance Health’s medical membership was around 45.4 million as of March 31, 2026, which dipped 0.9% year over year. ELV’s net investment income rose 29.7% year over year to $765 million.
The Zacks Consensus Estimate for Cigna Group’s first-quarter 2026 earnings of $7.54 per share has witnessed one upward revision over the past 60 days, with one movement in the opposite direction. Cigna Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 2.7%. The consensus estimate for first-quarter 2026 revenues is pegged at $66.74 billion, suggesting 2% year-over-year growth.
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MOH Q1 EPS Tops Estimates on Lower Medical Costs, Membership Declines
Key Takeaways
Molina Healthcare Inc. (MOH - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level.
Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line marginally missed the consensus mark by 0.2%.
The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
MOH’s Q1 Operational Update
Premium revenues of $10.2 billion decreased 4.3% year over year in the quarter under review and missed the Zacks Consensus Estimate by 0.2%. The decline was due to reduced memberships, reflecting product and pricing decisions.
As of March 31, 2026, total membership decreased 12.5% year over year to around 5 million and missed the Zacks Consensus Estimate by 1.2%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income fell 9.3% year over year to $98 million. It missed the Zacks Consensus Estimate of $100.8 million.
Total operating expenses were $10.71 billion, flat year over year and slightly below our model estimate of $10.72 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.9% in the first quarter from 6.3% a year ago. Interest expenses of $54 million rose from $43 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 91.1% in the reported quarter. It rose from 89.2% a year ago but was below the Zacks Consensus Estimate of 91.5%.
Molina Healthcare’s adjusted net income decreased 64% year over year to $120 million.
MOH’s Financial Update (as of March 31, 2026)
Molina Healthcare exited the first quarter with cash and cash equivalents of $5.3 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16.4 billion rose from $15.6 billion at 2025-end.
Long-term debt was $3.8 billion, unchanged from the 2025-end levels.
Total stockholders’ equity of $4.08 billion rose from $4.07 billion at the end of 2025.
Net cash provided by operating activities amounted to $1.1 billion in the first quarter of 2026 compared with $190 million in the prior year.
MOH’s 2026 Guidance
The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.
Management expects 2026 GAAP earnings of at least $1.90 per diluted share. It has reaffirmed adjusted earnings guidance of at least $5.00 per diluted share.
Adjusted net income is projected to be $256 million, while GAAP net income is expected to reach $97 million in 2026.
MOH’s Zacks Rank
Molina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Are Other HMOs Placed in Q1?
Major peers UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) have already reported first-quarter results, while The Cigna Group (CI - Free Report) is scheduled to report next week.
UnitedHealth reported first-quarter 2026 adjusted EPS of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. The results were driven by growth in commercial fee-based membership and the strength in Optum Rx. Weaknesses in Optum Health and declining risk-based membership partially offset the positives. UNH’s first-quarter premium of $87.6 billion increased from $86.5 billion a year ago and beat the consensus mark of $86.1 billion.
Elevance Health reported first-quarter 2026 adjusted EPS of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. The strong quarterly results benefited from the growth in premiums. The upside was partly offset by a decline in overall medical membership and an elevated expense level. Elevance Health’s medical membership was around 45.4 million as of March 31, 2026, which dipped 0.9% year over year. ELV’s net investment income rose 29.7% year over year to $765 million.
The Zacks Consensus Estimate for Cigna Group’s first-quarter 2026 earnings of $7.54 per share has witnessed one upward revision over the past 60 days, with one movement in the opposite direction. Cigna Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 2.7%. The consensus estimate for first-quarter 2026 revenues is pegged at $66.74 billion, suggesting 2% year-over-year growth.