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Molina (MOH) Down 1.7% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Molina (MOH - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Molina due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Molina Healthcare reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level.
Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%.
Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.
MOH’s Q2 Operational Update
Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions.
As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%.
Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million.
The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%.
Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million.
MOH’s Q2 Financial Update
Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end.
Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level.
Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025.
Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period.
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 $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share.
MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -27.16% due to these changes.
VGM Scores
At this time, Molina has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Molina has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Molina (MOH) Down 1.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Molina (MOH - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Molina due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
MOH Q2 Earnings Beat on Lower Operating Expenses, 2026 EPS View Raised
Molina Healthcare reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level.
Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%.
Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.
MOH’s Q2 Operational Update
Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions.
As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%.
Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million.
The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%.
Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million.
MOH’s Q2 Financial Update
Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end.
Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level.
Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025.
Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period.
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 $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share.
MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -27.16% due to these changes.
VGM Scores
At this time, Molina has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Molina has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.