Molina Healthcare reported $38 million in net income for the third quarter of 2026, a 52% year-over-year drop from $79 million.
The insurer attributed the decline mainly to a higher consolidated medical loss ratio, which was 92.9% in Q3, up from 92.6% a year earlier. Total revenue for the quarter was $11.1 billion, down 3.4% year over year. Premium revenue fell approximately 4% to $10.5 billion, reflecting lower membership in Medicaid and the ACA marketplace, partially offset by rate updates.
“With the apparent plateauing of medical cost trend, which remains at elevated levels, and the strength of recent rate updates for 2027, we believe we are likely observing the beginning of the turn in Medicaid margins,” President and CEO Joseph Zubretsky said in an Oct. 21 news release.
Molina reaffirmed its full year 2026 adjusted earnings guidance of at least $5.25 per diluted share and GAAP earnings guidance of at least $2.38 per share. Full year premium revenue guidance was unchanged at approximately $42 billion. The guidance accounts for a projected $1.50 per share loss tied to the implementation of a new Florida Medicaid contract in the fourth quarter and a $1 per share loss from its Medicare Advantage market exit in 2027.
Molina had approximately 4.9 million members as of Sept. 30, down from 5.6 million a year earlier. Marketplace membership fell to 267,000 from 713,000 a year ago. Medicaid membership was 4.4 million, down from 4.6 million a year earlier.
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