Molina Healthcare plunged 25.5% to $131.72 on Friday, after the company told investors to brace for at least $5 in adjusted earnings per share in 2026—missing what analysts had penciled in. The Medicaid specialist also plans to pull out of Medicare Advantage Part D prescription drug plans starting in 2027. CEO Joseph Zubretsky described 2026 as a “trough year” for Medicaid margins. Molina attributed the trimmed outlook to losses from its Part D business and a fresh Florida Medicaid contract, each dragging estimates by $1 and $1.50 per share. The Health Care Select Sector SPDR Fund didn’t follow Molina lower, instead picking up 1.8% to finish at $157.71.