NEW YORK, Feb 6, 2026, 04:59 EST — Premarket
- Shares of Molina Healthcare tumbled roughly 29% in premarket action following the insurer’s 2026 earnings guidance, which came in far below Wall Street expectations.
- The company announced plans to exit its traditional Medicare Advantage Part D business by 2027, redirecting its efforts toward dual-eligible members.
- At 8 a.m. ET, investors are set to dive into the earnings call, seeking clarity on medical cost trends and how contracts are being executed. Investing.com
Molina Healthcare, Inc. (MOH) shares plunged 28.8% to $125.91 in premarket trading Friday, following a forecast for 2026 earnings that fell well short of Wall Street estimates. The insurer also announced plans to scale back a portion of its Medicare operations. Investing.com
The miss is significant as investors look for signs of a slowdown in medical costs within government-backed health plans. Molina’s results suggest the opposite, signaling another year where expenses and premiums might stay out of sync. Reuters
The comment injects more pressure into a sector already on edge over margins. When a major Medicaid-focused player calls this a “trough year,” investors usually take it as a signal for the entire group. Reuters
Molina forecast adjusted earnings of at least $5.00 per share for 2026, well below analysts’ average estimate of $13.76, according to LSEG data. The company also projected premium revenue around $42.2 billion and total revenue near $44.5 billion. Reuters
The company projects its medical care ratio to hit 92.6% in 2026. This figure tracks claims costs relative to premium revenue—higher percentages generally signal narrower margins. SEC
Molina flagged a $2.50-per-share hit in its earnings outlook, breaking it down into $1.50 from rolling out a new Florida CMS Medicaid contract and $1.00 due to weak results in its traditional Medicare Advantage Part D segment. The company intends to drop that Medicare Advantage Part D business starting in 2027; Part D covers prescription drugs. SEC
Molina reported a fourth-quarter adjusted loss of $2.75 per share, citing approximately $2.00 per share in negative retroactive revenue adjustments as a drag on results. The company’s medical care ratio for the quarter stood at 94.6%. SEC
Chief executive Joseph Zubretsky described the current environment as a low point in the cycle. He noted, “We believe that the imbalance between rates and trend marks 2026 as a trough year for Medicaid industry margins,” he said. SEC
The stock ended Thursday at $176.84 but dropped sharply in late trading, with the latest indication showing it near $126 just before the New York open. Investing.com
Shares of other managed-care companies fell in after-hours trading Thursday, including Centene, UnitedHealth, Humana, and Elevance Health, Reuters reported. Investors are concerned about rising expenses linked to increasing demand for behavioral health services and costly specialty medications. Reuters
Much now depends on reimbursement rates catching up and implementation costs staying on track, particularly in Medicaid. If they miss the mark, the downside is clear: ongoing margin pressure and another round of estimate revisions.
Molina will review the quarter and lay out its 2026 outlook during a conference call set for 8:00 a.m. ET on Friday. SEC
