Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces in the United States. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company was founded in 1980 and is headquartered in Long Beach, California.
Molina Healthcare reported second-quarter 2026 adjusted earnings per share of $1.51, beating the Zacks Consensus Estimate by 10.2% but down 72.4% year over year. Revenues fell 4.8% to $10.9 billion, slightly missing consensus, while total membership dropped 14.3% to about 4.9 million. The company raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share and its GAAP earnings guidance to at least $2.15 per share. Shares have lost about 1.7% since the earnings report, underperforming the S&P 500.
Cigna and peers report strong Q2 health insurance earnings
Cigna and other health insurance providers reported strong second-quarter results, with the group beating revenue consensus by 2.8% while next quarter's guidance came in 1.7% below expectations. Cigna posted revenues of $71.56 billion, up 6.6% year over year and 1.2% above estimates, but its stock fell 4.8% since reporting to $282.28. CVS Health was the best performer with revenues of $106.1 billion, up 7.3% and 6.7% above expectations, yet its shares dropped 7% to $97.16. Progyny delivered the weakest guidance update, with revenues of $350.5 million up 5.3% but missing next quarter EBITDA guidance significantly, sending its stock down 13% to $26.29. Clover Health beat expectations with revenues of $743.2 million, up 55.6%, and its stock rose 10.6% to $4.58, while Molina Healthcare reported revenues of $10.87 billion, down 4.8% and in line with estimates, with its stock down 4.1% to $212.75.
Molina Healthcare Surged on Medicaid Clarity and Robust Results
Molina Healthcare was the top contributor to Sycamore Mid Cap Value Equity Strategy in the second quarter of 2026, according to the fund's investor letter. The managed care company's shares rallied after a strong first-quarter earnings report refocused investor attention on its core government-sponsored plan business, signaling that the worst of the medical cost ratio deterioration was likely behind it. Shares also benefited from greater visibility into the timing and scale of Medicaid spending cuts under the One Big Beautiful Bill Act, and got another lift late in the quarter when CMS released 2025 risk-adjustment transfer data viewed favorably for managed care companies. On August 12, 2026, Molina Healthcare closed at $206.06 per share, reflecting a market capitalization of $10.76 billion and a year-to-date gain of 20.40%.
Trump announces phased tariffs up to 200% on generic drug imports
President Donald Trump announced phased tariffs on generic drug imports, starting with zero tariffs for two years from August 1, then rising to 100% in August 2028 and 200% a year later, to push production onshore. Novo Nordisk sued Eli Lilly over ads comparing their GLP-1 weight-loss drugs, alleging misleading efficacy claims. Molina Healthcare shares fell about 11% despite beating second-quarter estimates, as its medical care ratio reached 92.2%. Repligen agreed to acquire BioLife Solutions for about $1.5 billion in a stock-and-cash deal. Roche shares jumped roughly 5% after the company reiterated its 2026 outlook, while Thermo Fisher Scientific raised its full-year guidance following better-than-expected second-quarter results.
Molina Healthcare Plans Major ACA Pullback Starting 2027
Molina Healthcare plans to significantly scale back its Affordable Care Act business beginning in 2027, limiting operations to six states and reducing premiums by a meaningful margin. The decision follows ongoing pressure on ACA profitability, including falling membership and higher medical costs. The company is restructuring its portfolio to sharpen focus on Medicaid and Medicare Advantage, adjusting its business mix and risk profile. Molina Healthcare shares trade at $197.55, up 10.7% year to date and 19.7% over the past year, though longer-term returns over three and five years show declines of 34.5% and 27.6%.
Molina Healthcare reported second-quarter 2026 adjusted earnings per share of $1.51, beating the Zacks Consensus Estimate by 10.2%. Revenues fell 4.8% year over year to $10.9 billion, slightly missing the consensus, while premium revenues declined 5.7% to $10.2 billion on lower membership. Total operating expenses dropped 2.9% to $10.7 billion, driven by lower medical care costs, and the consolidated medical care ratio rose to 92.2% from 90.4% a year ago. The company raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share and increased its GAAP earnings outlook to at least $2.15 per share.
US defers over $1 billion in Medicaid payments to California and Minnesota
The U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services have deferred more than $1 billion in federal Medicaid payments to California and Minnesota as part of a Trump administration effort to combat fraud, waste, and abuse. CMS is deferring approximately $867.5 million in federal Medicaid payments to California and $199 million to Minnesota after financial reviews identified claims requiring additional scrutiny before federal matching funds are released. The payments are not being permanently withheld, and both states will have the opportunity to submit documentation demonstrating the claims comply with federal Medicaid requirements. Minnesota Governor Tim Walz called the move political retribution, arguing the administration was punishing children, seniors, and people with disabilities rather than fraudsters, while California Governor Gavin Newsom called it a recycled political stunt and said the state would collaborate with CMS in good faith efforts to combat fraud.
Molina Healthcare and Construction Partners set for S&P index changes
Molina Healthcare will replace National Storage Affiliates Trust in the S&P MidCap 400, while Construction Partners will take Molina's place in the S&P SmallCap 600, with both changes effective before the market opens on July 22, S&P Dow Jones Indices said. The reshuffle follows Public Storage's acquisition of National Storage Affiliates Trust, which is expected to close on or around that date, subject to customary closing conditions. Construction Partners shares rose 2.5% premarket.
Elevance Health shares drop 8% after Q2 benefit expense ratio rises, dragging down peers
Elevance Health shares fell about 8% in premarket trading after the insurer reported a higher-than-expected benefit expense ratio in its second quarter of 2026, sending shares of Molina Healthcare, Centene, and Oscar Health lower. The benefit expense ratio, which measures the proportion of premiums paid out for medical care, rose 80 basis points year-over-year to 89.7%, exceeding the 90.15% projected by analysts according to LSEG data. Elevance attributed the increase mainly to rising medical cost trends in its Government businesses. Despite beating earnings estimates with adjusted earnings per share of $7.45 and raising its full-year adjusted EPS guidance to at least $27.00 from $26.75, total operating revenue grew only about 1% year-over-year to $49.8 billion, while total medical membership dropped roughly 2% to about 44.9 million amid declines in Medicaid and Medicare enrollees.
Health insurance stocks rise 37.4% on average after strong Q1 earnings
Health insurance provider stocks tracked by this publication posted a strong first quarter, with revenues beating analyst consensus estimates by 1.4% and next-quarter revenue guidance coming in line. As a group, share prices have risen 37.4% on average since the latest earnings results. Cencora reported revenues of $78.36 billion, up 3.8% year on year but falling short of expectations by 3.9%, leaving its stock flat. CVS Health delivered the biggest beat, with revenues of $100.4 billion up 6.2% year on year and exceeding estimates by 6.3%, driving a 29.2% stock gain. Molina Healthcare's revenues of $10.8 billion, down 3.1% year on year, met expectations but its full-year revenue guidance missed significantly, yet the stock surged 52.6%. Humana's revenues of $39.65 billion, up 23.5% year on year, met estimates and its full-year EPS guidance beat, propelling a 70.4% stock increase. Clover Health achieved the fastest revenue growth at 62% year on year to $749.2 million, beating estimates by 4.8%, and its stock jumped 65.9%.
Clover Health leads health insurance providers with 62% revenue growth in Q1
Health insurance providers reported strong first-quarter results, with revenues beating analyst consensus estimates by 1.4% on average. Clover Health stood out with revenue of $749.2 million, up 62% year over year and exceeding expectations by 4.8%, while also raising full-year EBITDA guidance. CVS Health posted the biggest beat, with revenue of $100.4 billion, up 6.2% and surpassing estimates by 6.3%. Centene reported $49.94 billion in revenue, up 7.1% and beating by 6.2%, though it lost 1.36 million customers. Molina Healthcare's revenue declined 3.1% to $10.8 billion, missing full-year guidance, and Cencora's revenue of $78.36 billion fell short of estimates by 3.9%. Since reporting, Clover Health's stock has surged 101%, while the group's shares are up 41.9% on average.
Molina Healthcare Stock Appears Undervalued on Key Metrics
Molina Healthcare currently appears undervalued based on several valuation metrics. The stock holds a Zacks Rank #2, or Buy, and an A grade for Value. It trades at a price-to-earnings ratio of 9.08, well below the industry average of 18.19, and its forward P/E has ranged from 6.48 to 13.98 over the past year. The price-to-book ratio stands at 2.06 versus the industry's 2.73, while the price-to-sales ratio is 0.26 compared to the industry average of 0.35. Combined with a strong earnings outlook, these figures suggest Molina Healthcare is one of the market's strongest value stocks.
2 Healthcare Stocks with Competitive Advantages and 1 Facing Challenges
CVS Health faces challenges with flat sales forecast and declining earnings per share, while Humana and Molina Healthcare show strong revenue growth and competitive advantages. CVS Health's annual sales growth of 6.3% over the last two years lagged behind peers, and its earnings per share fell by 1.5% annually over five years despite revenue growth. Humana posted annual revenue growth of 13.6% over two years and projects 19.4% growth for the next 12 months, with a dominant market position and $137.3 billion in revenue. Molina Healthcare achieved 16.2% annual revenue growth over five years and has a large revenue base of $45.08 billion, giving it negotiating power.
Michael Burry's Final Scion Filings Show NVIDIA Puts and a 51% Stake in Molina Healthcare
Michael Burry's last 13F filings before shutting down Scion Asset Management in late 2025 disclosed put options against NVIDIA and Palantir alongside a roughly 51% portfolio allocation to Molina Healthcare. The filings, which are a historical snapshot rather than a live position, paired short bets on AI-infrastructure names with a heavy rotation into the Medicaid-focused insurer trading at a price-to-sales ratio of 0.2x. Molina's bull case rests on a margin trough recovery, over $11 per share in contracted earnings by 2029, and a $1 billion buyback executed at depressed prices. Burry has since deregistered Scion and now publishes a Substack newsletter warning of an AI bubble, meaning no ongoing disclosures verify current holdings.
Molina Healthcare Stock Rises 23.2% to $200, Outpacing S&P 500 by 10.8% Over Six Months
Molina Healthcare shares have climbed 23.2% to $200 over the past six months, beating the S&P 500 by 10.8 percentage points. The company grew revenue at a 16.2% compound annual rate over five years and reported $45.08 billion in trailing 12-month revenue, giving it significant scale advantages. However, its customer base declined at an average 1.9% annual rate over two years to 5.03 million, signaling potential competitive or saturation pressures. The stock trades at 34.9 times forward earnings.