Molina raises 2026 GAAP forecast as Q3 profit falls 52%

Molina Healthcare’s third-quarter net income fell 52% year over year to $38 million, while the company raised its minimum full-year 2026 GAAP earnings guidance to $2.38 per diluted share from a prior floor of $2.15. Molina kept its adjusted earnings and premium-revenue guidance unchanged.

The results cover the three months ended Sept. 30, 2026. Molina’s Oct. 21 release described the financial statements as unaudited.

The comparison shows earnings contracted more sharply than revenue: GAAP net income was $41 million lower than a year earlier, while total revenue declined $395 million. Diluted earnings per share were 73 cents, compared with $1.51; adjusted diluted earnings per share were 89 cents, down from $1.84.

Molina attributed the decline in premium revenue to lower Medicaid and Marketplace membership, partly offset by rate updates. The company said the higher medical care ratio was the main reason for lower net income.

For the first nine months of 2026, revenue was $32.752 billion, versus $34.051 billion in the same period of 2025. GAAP net income for those periods was $112 million and $632 million, respectively.

What the 2026 forecast includes i

Molina’s full-year guidance calls for approximately $42 billion in premium revenue and at least $5.25 in adjusted diluted earnings per share, both unchanged from its prior guidance. The company raised its minimum GAAP diluted earnings forecast from at least $2.15 to at least $2.38 per share.

Molina said the 2026 earnings forecast includes an expected $1.50-per-share loss from implementing a new Florida Medicaid contract in the fourth quarter and a $1-per-share loss tied to performance of its traditional Medicare Advantage Prescription Drug (MAPD) product. The company said it plans to exit that product for 2027. These are forecast components, not losses reported as having already occurred.

Molina reported approximately 4.9 million members as of Sept. 30. The earnings release did not announce an immediate change to members’ coverage, benefits or eligibility.