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Impairment slashes Molina Healthcare (NYSE: MOH) Q1 2026 earnings

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Molina Healthcare reported first quarter 2026 results with GAAP diluted EPS of $0.27 and adjusted diluted EPS of $2.35, both sharply below the prior year. Total revenue was $10.8 billion, with premium revenue of about $10.2 billion, down 4% year over year.

Results were heavily affected by a $93 million impairment tied to the planned 2027 exit of the Medicare Advantage-Part D product, driving GAAP net income down to $14 million from $298 million. The consolidated medical care ratio rose to 91.1%, while the G&A ratio increased to 7.2%.

The company served roughly 5.0 million members as of March 31, 2026 and generated operating cash flow of $1,082 million versus $190 million a year earlier. Management reaffirmed 2026 guidance for premium revenue of about $42 billion, GAAP EPS of at least $1.90, and adjusted EPS of at least $5.00.

Positive

  • Operating cash flow strengthened materially: Operating cash flow for the three months ended March 31, 2026 rose to $1,082 million from $190 million a year earlier, driven mainly by the timing of government receivables and payables.

Negative

  • Earnings declined sharply due to impairment and softer revenue: Q1 2026 GAAP EPS fell to $0.27 (down 95% year over year) and adjusted EPS to $2.35 (down 61%), with premium revenue down 4% and a $93 million impairment tied to exiting the Medicare Advantage-Part D product.

Insights

Q1 earnings fell sharply on a Medicare-related impairment, though cash flow and 2026 guidance remain solid.

Molina Healthcare posted Q1 2026 GAAP diluted EPS of $0.27 and adjusted EPS of $2.35, versus $5.45 and $6.08 a year earlier. The key driver was a $93M impairment tied to exiting its Medicare Advantage Prescription Drug product for 2027, which compressed the GAAP pre-tax margin to 0.3%.

Premium revenue declined 4% to $10.2B, reflecting lower Medicaid membership from market contraction and the Virginia Medicaid contract expiration, plus reduced Marketplace membership from product and pricing changes. The consolidated medical care ratio rose to 91.1%, and the adjusted G&A ratio increased to 6.9%, indicating some cost pressure.

Despite weaker earnings, operating cash flow surged to $1,082M from $190M, helped by timing of government receivables and payables. Management reaffirmed full-year 2026 guidance for premium revenue of about $42B, GAAP EPS of at least $1.90, and adjusted EPS of at least $5.00, and signaled a more detailed three-year outlook at its Investor Day on May 8.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Premium revenue Q1 2026 $10,172M Three months ended March 31, 2026; down 4% year over year
Total revenue Q1 2026 $10,796M Three months ended March 31, 2026, vs $11,147M in 2025
GAAP diluted EPS Q1 2026 $0.27/share Three months ended March 31, 2026; 95% decrease vs $5.45
Adjusted diluted EPS Q1 2026 $2.35/share Three months ended March 31, 2026; 61% decrease vs $6.08
Impairment charge $93M Q1 2026 impairment of intangible assets tied to exiting Medicare Advantage-Part D product for 2027
Operating cash flow Q1 2026 $1,082M Three months ended March 31, 2026, vs $190M in prior-year quarter
Ending membership 5,034,000 members Total membership as of March 31, 2026 across Medicaid, Medicare, Marketplace, Other
2026 adjusted EPS guidance At least $5.00/share Full-year 2026 adjusted earnings per diluted share guidance reaffirmed
Medical Care Ratio (MCR) financial
"Medical Care Ratio (MCR) •The consolidated MCR for the first quarter of 2026 was 91.1%."
Medical Care Ratio (MCR) is the share of a health insurer’s or payer’s revenue that is spent on patient care and medical claims rather than on administration or profit. Investors watch it like a budget split—if a larger slice goes to care, it can signal higher claim costs or generous benefits, while a smaller slice may indicate tighter cost control; either way, shifts in MCR affect margins, pricing power, and regulatory compliance.
adjusted net income financial
"Adjusted net income for the first quarter of 2026 was $2.35 per diluted share, a decrease of 61% year over year."
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
Days in claims payable financial
"Days in claims payable at March 31, 2026, was 44, lower than typical due to the timing of payments at the end of the quarter."
Days in claims payable measures the average number of days a company takes to settle insurance or patient claims after they are recorded as owed. Think of it like how long a person leaves a bill in their inbox before paying: longer times can free up cash short-term but may signal backlogs, understaffing, or growing unpaid obligations; shorter times suggest smoother operations and more predictable cash flow—both matter to investors assessing liquidity and risk.
impairment financial
"and reflects a $93 million impairment of intangible assets related to the Company’s planned exit of the Medicare Advantage-Part D product for 2027."
Impairment occurs when the value of an asset, such as property, equipment, or investments, drops below its recorded worth on the books. This situation signals that the asset may be less valuable than originally thought, similar to discovering that an item you own is worth less than what you paid for it. For investors, recognizing impairment is important because it can affect the overall financial health and future prospects of a business.
Medicare Advantage Prescription Drug product financial
"This impairment charge results from the Company’s decision to exit the Medicare Advantage Prescription Drug product for 2027 as that product does not align with the Company’s strategic shift."
Premium revenue $10.2B decrease of 4% year over year
Total revenue $10.8B down from $11.1B in Q1 2025
GAAP diluted EPS $0.27 decrease of 95% year over year from $5.45
Adjusted diluted EPS $2.35 decrease of 61% year over year from $6.08
Operating cash flow $1,082M up from $190M in the prior-year quarter
Guidance

For full year 2026, the company expects premium revenue of approximately $42 billion, about a 2% decline from 2025, GAAP earnings of at least $1.90 per diluted share, and adjusted earnings of at least $5.00 per diluted share.

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Understanding 8-K Material Events →
0001179929false00011799292026-04-222026-04-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
______________
Current Report
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2026
______________
MOLINA HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)
Delaware1-3171913-4204626
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
______________
200 Oceangate, Suite 100,Long Beach,California90802
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (562) 435-3666
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 Par Value MOHNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.
☐


Item 2.02.    Results of Operations and Financial Condition.
On April 22, 2026, Molina Healthcare, Inc. (the “Company”) issued a press release reporting its financial results for the first quarter ended March 31, 2026 and reaffirming the Company’s full-year 2026 premium revenue and adjusted earnings guidance. The full text of the press release is included as Exhibit 99.1 to this report. The information contained in the Company’s website cited in the press release is not part of this report.
Note: The information in this Form 8-K and the exhibits attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.    Financial Statements and Exhibits.
(d)     Exhibits:
Exhibit No.Description
99.1
Press release of Molina Healthcare, Inc., issued April 22, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MOLINA HEALTHCARE, INC.
Date:
April 22, 2026
By:
/s/ Jeff D. Barlow
Jeff D. Barlow
Chief Legal Officer and Secretary


molinaa03a01a01a17.jpg
News Release
Investor Contact: Jeffrey Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012
Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-951-1588
Molina Healthcare Reports First Quarter 2026 Financial Results
Reaffirms Full Year 2026 Premium Revenue and Adjusted Earnings Guidance
Long Beach, Calif., April 22, 2026 – Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported first quarter 2026 GAAP income per diluted share of $0.27 and adjusted income per diluted share of $2.35. Financial results are summarized below:
Three months ended
March 31,
 20262025
(In millions, except per-share results)
Premium Revenue$10,172$10,628
Total Revenue$10,796$11,147
GAAP:
Net Income$14$298
EPS – Diluted$0.27$5.45
Medical Care Ratio (MCR)91.1%89.2%
G&A Ratio7.2%6.9%
Pre-tax Margin0.3%3.5%
Adjusted:
Net Income$120$333
EPS – Diluted$2.35$6.08
G&A Ratio6.9%6.3%
Pre-tax Margin1.6%3.9%
See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release.

Quarter Highlights
•As of March 31, 2026, the Company served approximately 5.0 million members.
•Premium revenue was approximately $10.2 billion for the first quarter of 2026.
•First quarter 2026 GAAP income per diluted share of $0.27 and adjusted income per diluted share of $2.35.
•The Company reaffirmed its full year 2026 guidance of expected premium revenue of approximately $42 billion and adjusted earnings of at least $5.00 per diluted share.

“We are pleased with our first quarter results and continued disciplined approach to medical cost management,” said Joseph Zubretsky, President and Chief Executive Officer. “Medical cost trend was modestly favorable to our expectations, and our reaffirmed full year 2026 premium revenue and adjusted earnings guidance reflect a prudent view of full year results at this early point in the year. We look forward to updating you on our three-year outlook at our Investor Day event on Friday, May 8th.”

-MORE-
Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 2
April 22, 2026
Premium Revenue
Premium revenue was approximately $10.2 billion for the first quarter of 2026, a decrease of 4% year over year. The lower premium revenue reflects the impact of lower Medicaid membership due to general market contraction and the expiration of our Medicaid contract in Virginia, and a decrease in Marketplace membership resulting from our product and pricing strategy.

Net Income
GAAP net income for the first quarter of 2026 was $0.27 per diluted share, a decrease of 95% year over year, and reflects a $93 million impairment of intangible assets related to the Company’s planned exit of the Medicare Advantage-Part D product for 2027. Adjusted net income for the first quarter of 2026 was $2.35 per diluted share, a decrease of 61% year over year.

Medical Care Ratio (MCR)
•The consolidated MCR for the first quarter of 2026 was 91.1%.
•The Medicaid MCR for the first quarter of 2026 was 92.0%, reflecting the January 1st rate cycle and medical cost trend that was moderately favorable to the Company’s expectations.
•The Medicare MCR for the first quarter of 2026 was 89.8%, and in line with the Company’s expectation, reflecting pricing and benefit adjustments implemented for 2026.
•The Marketplace MCR for the first quarter of 2026 was 84.0%. Within that result, approximately 450 basis points was due to prior year risk adjustment and continued program integrity initiatives by the Centers for Medicare and Medicaid Services. Excluding these items, the Marketplace MCR was approximately 79.5% and in line with the Company’s expectations.

General and Administrative Expense Ratio
The G&A ratio and the adjusted G&A ratio for the first quarter of 2026 were 7.2% and 6.9%, respectively, and reflect the timing of operating expenses.

Balance Sheet
Cash and investments at the parent company were approximately $213 million as of March 31, 2026, compared to $223 million as of December 31, 2025.
Days in claims payable at March 31, 2026, was 44, lower than typical due to the timing of payments at the end of the quarter.

Cash Flow
Operating cash flow for the three months ended March 31, 2026, was $1,082 million, compared to $190 million for the three months ended March 31, 2025. The increase in cash flow for the period year-over-year was driven mainly by the timing of government receivables and payables.

2026 Guidance
Premium revenue guidance for the full year is unchanged and expected to be approximately $42 billion, a decline of approximately 2% from the full year 2025.
The Company expects its full year 2026 GAAP earnings to be at least $1.90 per diluted share and reaffirms its full year 2026 adjusted earnings of at least $5.00 per diluted share. When the Company reports its second quarter of 2026 results, it expects to update full year 2026 guidance to reflect the first and second quarter results, which provide a time-tested base off of which to project the second half of 2026.

-MORE-
Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 3
April 22, 2026
Conference Call
Management will host a conference call and webcast to discuss Molina Healthcare’s first quarter March 31, 2026 results, at 8:00 a.m. Eastern Time on Thursday, April 23, 2026. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 4352622. A telephonic replay of the conference call will be available through Thursday, April 30, 2026, by dialing (855) 669-9658 and entering confirmation number 6456388. A live audio broadcast of this conference call will be available on Molina Healthcare’s investor relations website, investors.molinahealthcare.com. A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast.

About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit molinahealthcare.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release and the Company’s accompanying oral remarks contain forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements provide current expectations of future events based on certain assumptions, and all statements other than statements of historical fact contained in this earnings release and the Company’s accompanying oral remarks may be forward-looking statements. In some cases, you can identify forward-looking statements by words such as “guidance,” “future,” “anticipates,” “believes,” “embedded,” “estimates,” “expects,” “growth,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this earnings release include, but are not limited to, statements regarding the Company’s 2026 guidance and long-term performance outlook, trends with respect to rates, utilization, and medical costs, including the timing thereof and the anticipated impact on the Company’s business, and our management’s plans and objectives for future operations and business strategy.
Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings “Forward-Looking Statements,” and “Risk Factors,” in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025, which is on file with the U.S. Securities and Exchange Commission (the “SEC”), and in the Company’s other filings with the SEC, including its Quarterly Report on Form 10-Q for the period ended March 31, 2026, to be filed with the SEC.
These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of April 22, 2026, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations.
-MORE-
Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 4
April 22, 2026
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
 March 31,
 20262025
 (In millions, except per-share amounts)
Revenue:
Premium revenue$10,172 $10,628 
Premium tax revenue 504 388 
Investment income 98 108 
Other revenue22 23 
Total revenue10,796 11,147 
Operating expenses:
Medical care costs9,270 9,479 
General and administrative expenses779 774 
Premium tax expenses504 388 
Depreciation and amortization39 48 
Impairment93 — 
Other28 25 
Total operating expenses10,713 10,714 
Operating income83 433 
Interest expense54 43 
Income before income tax expense 29 390 
Income tax expense15 92 
Net income$14 $298 
Net income per share – Diluted$0.27 $5.45 
Diluted weighted average shares outstanding
51.0 54.8 

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Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 5
April 22, 2026
MOLINA HEALTHCARE, INC.
CONSOLIDATED BALANCE SHEETS
March 31,December 31,
20262025
Unaudited
(Dollars in millions,
except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents$5,314 $4,248 
Investments3,937 4,008 
Receivables3,420 3,533 
Prepaid expenses and other current assets655 655 
Total current assets13,326 12,444 
Property, equipment, and capitalized software, net300 301 
Goodwill and intangible assets, net2,092 2,195 
Restricted investments312 299 
Deferred income taxes, net215 178 
Other assets146 147 
Total assets$16,391 $15,564 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable$4,941 $4,887 
Amounts due government agencies 1,685 1,326 
Accounts payable, accrued liabilities and other1,161 1,093 
Deferred revenue401 66 
Total current liabilities8,188 7,372 
Long-term debt3,767 3,766 
Finance lease liabilities180 184 
Other long-term liabilities176 173 
Total liabilities12,311 11,495 
Stockholders’ equity:
Common stock, $0.001 par value, 150 million shares authorized; outstanding: 52 million shares at March 31, 2026, and 51 million at December 31, 2025
— — 
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding
— — 
Additional paid-in capital471 452 
Accumulated other comprehensive (loss) income(7)15 
Retained earnings3,616 3,602 
Total stockholders’ equity4,080 4,069 
Total liabilities and stockholders’ equity$16,391 $15,564 
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Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 6
April 22, 2026
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
20262025
(In millions)
Operating activities:
Net income$14 $298 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization39 48 
Deferred income taxes(30)13 
Share-based compensation
33 27 
Impairment93 — 
Other, net
— 2 
Changes in operating assets and liabilities:
Receivables113 (90)
Prepaid expenses and other current assets(86)(56)
Medical claims and benefits payable54 (81)
Amounts due government agencies 359 (32)
Accounts payable, accrued liabilities and other79 (268)
Deferred revenue335 252 
Income taxes79 77 
Net cash provided by operating activities1,082 190 
Investing activities:
Purchases of investments(249)(189)
Proceeds from sales and maturities of investments
295 331 
Purchases of property, equipment, and capitalized software
(27)(22)
Net cash paid in business combinations— (245)
Other, net (8)2 
Net cash provided by (used in) investing activities11 (123)
Financing activities:
Proceeds from borrowings under credit facility and term loans— 650 
Common stock purchases
— (500)
Common stock withheld to settle employee tax obligations(14)(36)
Other, net (6)33 
Net cash (used in) provided by financing activities(20)147 
Net increase in cash, cash equivalents, and restricted cash and cash equivalents1,073 214 
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period
4,348 4,741 
Cash, cash equivalents, and restricted cash and cash equivalents at end of period
$5,421 $4,955 
-MORE-
Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 7
April 22, 2026
MOLINA HEALTHCARE, INC.
UNAUDITED SEGMENT DATA
(Dollars in millions)


March 31,December 31,March 31,
2026
2025
2025
Ending Membership by Segment:
Medicaid4,498,000 4,568,000 4,812,000 
Medicare229,000 262,000 260,000 
Marketplace305,000 655,000 662,000 
Other2,000 6,000 18,000 
Total5,034,000 5,491,000 5,752,000 


Three Months Ended March 31,
20262025
Premium RevenueMedical
Margin
MCR (1)
Premium RevenueMedical
Margin
MCR (1)
Medicaid $7,927 $631 92.0%$8,130 $791 90.3%
Medicare 1,517 154 89.8 1,468 172 88.3 
Marketplace724 116 84.0 1,004 183 81.7 
Other4 1 88.4 26 3 87.7 
Consolidated$10,172 $902 91.1%$10,628 $1,149 89.2%
(1)The MCR represents medical costs as a percentage of premium revenue.









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Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 8
April 22, 2026
MOLINA HEALTHCARE, INC.
CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE
(Dollars in millions)

The Company’s claims liabilities include additional reserves to account for moderately adverse conditions based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. The Company’s reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior year” represent the amounts by which the original estimates of claims and benefits payable at the beginning of the year were more than the actual liabilities based on information (principally the payment of claims) developed since those liabilities were first reported. The following table presents the components of the change in medical claims and benefits payable for the periods indicated:
Three Months Ended
March 31,
20262025
Unaudited
Medical claims and benefits payable, beginning balance
$4,887 $4,640 
Components of medical care costs related to:
Current year9,523 9,665 
Prior year(253)(186)
Total medical care costs9,270 9,479 
Payments for medical care costs related to:
Current year5,883 5,789 
Prior year3,628 3,684 
Total paid9,511 9,473 
Acquired balances, net of post-acquisition adjustments— 245 
Change in non-risk and other payables295 (87)
Medical claims and benefits payable, ending balance
$4,941 $4,804 
Days in Claims Payable (1)
44 46 
__________________
(1)The Company calculates Days in Claims Payable using claims incurred but not paid, or IBNP, and other fee-for-service payables included in medical claims and benefits payable, and quarterly fee-for-service related costs included in medical care costs within the Company’s consolidated financial statements.

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Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 9
April 22, 2026
MOLINA HEALTHCARE, INC.
RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES
(In millions, except per diluted share amounts)

The Company believes that certain non-GAAP (generally accepted accounting principles) financial measures are useful supplemental measures to investors in comparing the Company’s performance to the performance of other public companies in the health care industry. The non-GAAP financial measures are also used internally to enable management to assess the Company’s performance consistently over time. These non-GAAP financial measures, presented below, should be considered as supplements to, and not as substitutes for or superior to, GAAP measures.
Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, impairments, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations.
Adjusted G&A Ratio represents the GAAP G&A ratio, recognizing adjustments.
Adjusted net income represents GAAP net income recognizing the adjustments, net of tax. The Company believes that adjusted net income is helpful to investors in assessing the Company’s financial performance.
Adjusted net income per diluted share represents adjusted net income divided by weighted average common shares outstanding on a fully diluted basis.
Adjusted pre-tax margin represents adjusted income before income tax expense, divided by total revenue.
Three Months Ended March 31,
20262025
AmountPer Diluted ShareAmountPer Diluted Share
GAAP Net income
$14 $0.27 $298 $5.45 
Adjustments:
Amortization of intangible assets
$10 $0.20 $21 $0.39 
Acquisition-related expenses (1)
21 0.41 23 0.41 
Impairment (2)
93 1.83 — — 
Other (3)
21 0.41 2 0.03 
Subtotal, adjustments
145 2.85 46 0.83 
Income tax effect
(39)(0.77)(11)(0.20)
Adjustments, net of tax
106 2.08 35 0.63 
Adjusted net income
$120 $2.35 $333 $6.08 
__________________
(1)Reflects non-recurring costs associated with acquisitions, including various transaction and certain integration costs.
(2)This impairment charge results from the Company’s decision to exit the Medicare Advantage Prescription Drug product for 2027 as that product does not align with the Company’s strategic shift to focus exclusively on dual eligible members in Medicare.
(3)The three months ended March 31, 2026 primarily includes non-recurring termination benefits, and the three months ended March 31, 2025 includes non-recurring litigation costs.
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Molina Healthcare, Inc. Reports First Quarter 2026 Financial Results
Page 10
April 22, 2026
MOLINA HEALTHCARE, INC.
RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED)
2026 GUIDANCE


Amount
Per Diluted Share (2)
GAAP Net income
$97 $1.90 
Adjustments:
Acquisition-related expenses
66 1.28 
Amortization of intangible assets36 0.71 
Impairment93 1.83 
Other 21 0.41 
Subtotal, adjustments
216 4.23 
Income tax effect (1)
(57)(1.13)
Adjustments, net of tax
159 3.10 
Adjusted net income
$256 $5.00 
__________________
(1)Income tax effect calculated at the statutory tax rate of approximately 26.8%.
(2)Computations assume approximately 51.1 million diluted weighted average shares outstanding.

-END-

Source: View Original Filing on SEC EDGAR

FAQ

How did Molina Healthcare (MOH) perform financially in Q1 2026?

Molina reported weaker profit in Q1 2026. GAAP diluted EPS was $0.27 and adjusted EPS was $2.35, down from $5.45 and $6.08 a year earlier, on total revenue of $10.8 billion and premium revenue of about $10.2 billion.

What drove Molina Healthcare’s earnings decline in Q1 2026?

The main drag was a large impairment charge. GAAP net income fell to $14 million from $298 million, largely because of a $93 million impairment of intangible assets related to the planned 2027 exit of the Medicare Advantage-Part D product.

How did Molina Healthcare’s membership and premium revenue change in Q1 2026?

Membership and premium revenue both declined. The company served about 5.0 million members as of March 31, 2026, and premium revenue of roughly $10.2 billion fell 4% year over year, mainly from lower Medicaid and Marketplace membership.

What were Molina Healthcare’s key medical cost ratios in Q1 2026?

Medical cost ratios increased versus last year. The consolidated medical care ratio was 91.1%. Segment MCRs were 92.0% for Medicaid, 89.8% for Medicare, and 84.0% for Marketplace, with Marketplace including about 450 basis points from prior-year risk adjustment items.

What 2026 guidance did Molina Healthcare (MOH) reaffirm?

Molina reaffirmed its full-year 2026 outlook. The company still expects about $42 billion in premium revenue, roughly a 2% decline from 2025, GAAP earnings of at least $1.90 per diluted share, and adjusted earnings of at least $5.00 per diluted share.

How strong was Molina Healthcare’s cash flow in Q1 2026?

Operating cash flow was significantly higher. Net cash provided by operating activities reached $1,082 million for the quarter, compared with $190 million in the prior-year period, mainly due to timing of government receivables, payables, and related working-capital items.

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