$MOH · MOLINA HEALTHCARE, INC.

Molina Healthcare filed its 10-Q for the quarter ended September 30, 2026. Net income fell 52% YoY to $38 million ($0.73 diluted EPS) from $79 million ($1.51). Total revenue declined 3.4% to $11.082 billion, with premium revenue down to $10.457 billion from $10.841 billion. The consolidated MCR deteriorated to 92.9% from 92.6%. Membership dropped to 4.9 million from 5.6 million a year ago. For the nine-month period, net income collapsed to $112 million from $632 million, with pre-tax margin shrinking to 0.5% from 2.4%.

Stock down 2.17% to $210.23 in regular trading, reflecting the sharp earnings deterioration. The 52% net income drop and MCR expansion validate bearish sentiment on a $10.97B market cap name where nine-month EPS collapsed from $11.79 to $2.19.

A 52% net income collapse, 700K member loss, and nine-month EPS dropping from $11.79 to $2.19 signal structural earnings deterioration at a $10.97B managed-care name.

Managed care peers face similar Medicaid redetermination headwinds and elevated medical cost trends. Molina's 92.9% MCR and membership decline of 700K YoY signal disproportionate exposure to the post-redetermination enrollment reset.

Medical cost environment remains challenging with MCR rising to 92.9% in Q3 and 92.1% YTD. Membership erosion (4.9M vs 5.6M) compounds the margin squeeze. State Medicaid contract renewals and RFPs pose ongoing competitive risk across 21 states.